Mazda: Continuing to release SUV models, increasing its ratio of SUVs to a maximum of 50% in FY 2018

Global deployment of production innovation system, increased production at overseas plants

2016/10/07

Summary
Mazda: Enacting the "Structural Reform Stage 2" mid-term management plan, deepening structural reforms
Establishing a production structure that will enable an SUV ratio of 50% on top of passenger car sales in FY 2018
Reducing costs through structural reform, balancing limited production of diversified products, and high production efficiency
Full operation of overseas production facilities: implementation of swing production
Mazda's performance: Small growth in sales in FY 2016, 3.7% decrease in sales figures, operating profit expected to decrease by 25%
Mazda's light vehicle production in 2019 will be 1.71 million units (LMC Automotive)

Summary

The new CX-9, which was released in North America (Photo: Mazda)

Mazda is currently carrying out its "Structural Reform Stage 2" mid-term management plan for the period FY 2016 to FY 2018. In its previous "Structural Reform" mid-term management plan that was in force from FY 2012 to FY 2015, the OEM released six models from its new-generation product group featuring SKYACTIV technology, and strengthened its production systems in Mexico, Thailand, Russia, and Malaysia to make significant advances in transforming its business structure.

Under its "Structural Reform Stage 2" mid-term management plan, Mazda will continue to release SKYACTIV models such as the CX-9 and CX-4 from the first half of FY 2016, and for the latter half of the plan the carmaker is planning to develop and release SKYACTIV GEN2 models.

For its sales and production plans, Mazda will increase production of SUVs, which are selling well globally, and aims to expand its global sales volume from 1.53 million in FY 2015 to 1.65 million in FY 2018. Additionally, in FY 2018 it will establish a flexible production structure allowing for an SUV ratio of 50% (the ratio of SUVs in FY 2015 was roughly 34%).

Mazda will increase flexibility at domestic and overseas plants, while implementing swing production, where domestic and overseas plants mutually complement each other, in order to make full use of its overseas production facilities. The OEM plans to achieve production of 1.65 million vehicles in FY 2018 without constructing new plants (the plan also acts as a countermeasure for the strength of the yen since the beginning of 2016).

SKYACTIV models are being developed with a consolidated design and common architecture. As a result, Mazda is able efficiently to carry out small lot production of many products.

In its next mid-term management plan that will begin in FY 2019, the automaker will carry out a full scale release of SKYACTIV GEN2 models, enhance its electric drive technology, and increase its production capacity for quantitative expansion.

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Mazda: Continuing to release SUV models, increasing its ratio of SUVs to a maximum of 50% in FY 2018

Global deployment of production innovation system, increased production at overseas plants

2016/10/07

Summary

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