Mazda to Set New Joint Venture in Mexico

Japanese manufacturer Mazda will invest between $355 and $475 million together with Sumitomo Corporation in a new joint venture in Mexico that will include a car plant to manufacture models for Latin America. The Nikkei business daily wrote that Mazda will control the majority stake in the plant which is expected to produce up to 100,000 units of a compact car per year, with production scheduled to begin in 2013.

Meanwhile, Mazda also continues to focus on its partnership with Ford, despite the fact that the American manufacturer has reduced its stake in the Japanese brand from 11 percent to 3.5 percent.

"Ford said the decision to reduce its ownership stake in Mazda allows it to increase flexibility as it continues to pursue growth in key emerging markets. Ford said it plans to remain one of Mazda’s largest shareholders and remains committed to its strategic partnership with Mazda, which spans more than 30 years," Ford said in a statement in mid-November.

As said, Ford will continue to collaborate with Mazda in key joint venture and exchange of technology information, but the name of the projects to be jointly developed are yet to be disclosed.

For example, the two companies announced earlier this year an investment of up to $350 million in a pickup truck assembly plant in Thailand that would produce the next generation of a certain compact pickup to be sold under the two brands.

“The new investment means that AAT will continue to be a global centre of excellence for the production of both brands’ compact pickup trucks, and play an important role in Mazda’s global strategy,” said at that time Masaharu Yamaki, Mazda’s representative director and executive vice president.