Mazda to build next B-car in Japan

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Mazda Motor Corporation has announced plans to build its next sub-compact car (B-car) for the European market at its Ujina Plant in Hiroshima, Japan, as part a global efficiency drive.

Hisakazu Imaki, Representative Director and Chairman of the Board, President and CEO of Mazda Motor Corporation, said: “Currently production of the Mazda2, known as the Demio in Japan, exists in Valencia, Spain and Hiroshima, Japan. Our intention is to consolidate production of the next B-car into one location in order to maximise the economies of scale and efficiencies that this would offer. After assessing all risks and opportunities, including exchange exposure and Asia’s growth potential, it made sense to select Japan as the location.”

At the Valencia plant, over 143,000 Mazda2s have been built since production began in 2003. In Japan, production of the first generation Demio commenced in 1996 and the total domestic volume of all Demios/Mazda2s exceeded one million units by the end of September 2006.

Mazda has scheduled production of the next B-car to begin in 2007.

Ford of Europe said in a statement that the move will not adversely affect the Valencia assembly plant, where volume will be maintained through higher production of existing models.