Mazda: launches vehicles adopting SKYACTIV technology

Mazda to increase business in Latin America while revising FY2011 estimate downward

2011/11/18

Summary
Product development (plan)： Mazda introduces the New Demio/Mazda2 equipped with SKYACTIV technology and the New Axela/Mazda3 in Japan
Activities in major markets: Mazda, jointly with Sumitomo Corporation, builds a new plant in Mexico and starts sales business in Brazil
Mazda updates framework of its medium-/long-term measures for FY2015 with no change made to the FY2015 target
Estimates of global sales for full year FY2011: The SKYACTIV models contribute to sales growth...
The FY2011 full-year estimate: Mazda expects sales to decline by 7.1% with operating profit of zero and net loss of 19 billion JPY

Summary

Upon the introduction of vehicles adopting its new-generation SKYACTIV technology, Mazda is currently enhancing its sales activities globally as it considers the FY2011 to be the first year of SKYACTIV. In Japan, the company launched the Demio equipped with SKYACTIV technology in June and the Axela in September. It will launch the CX-5, which fully introduces the SKYACTIV technology, worldwide in 2012. In FY2015, the company expects that SKYACTIV-equipped vehicles will account for 80% of its total sales volume.

Concerning emerging markets, the company plans to boost sales in China and the ASEAN region by continuing to increase the number of models made locally. In Central and South America, it intends to strengthen activities there as the third pillar in its business strategy for emerging countries; jointly with Sumitomo Corporation, it will build a new plant in Mexico and will start sales business in Brazil.

Mazda updated the framework of its medium-/long-term measures that it had announced in April 2010. The company added future measures as a response to the changing business environment including the strong yen and raw material price hikes, but says that it will not change the FY2015 target (global sales volume of 1.7 million, consolidated operating profit of 170 billion JPY).

Mazda had global sales of 604,000 vehicles in the April－September period of 2011, down by 8.3% year-on-year. Sales also declined by 17.1%. The company posted an operating loss of 21.6 billion JPY due to protracted yen appreciation and net loss for the year of 39.9 billion JPY. In full-year FY2011, the company estimates that vehicle sales volume will increase by 2.9% to 1.31 million, but that sales will fall by 7.1%. It expects to achieve break even under uncertain business environment including yen appreciation, financial turmoil in Europe, and the floods in Thailand, and to register net loss of 19 billion JPY.

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