Losses At Home Make Mazda Trim Workforce Abroad
After four years in the reds, Mazda is trimming its workforce. Mazda will cut a quarter of its sales management staff in Europe and the U.S., in the current fiscal, The Nikkei [sub] heard while checking up on a press release outlining organizational and personnel changes at the Hiroshima carmaker.
With most of its production in Japan, Mazda takes the brunt of the high yen. Mazda is left with the decision whether to sell its cars at a loss, or make them uncompetitive.
According to The Nikkei, Mazda will reduce U.S. staff by 20 percent to around 550 workers. In Europe, the staff of Mazda’s German subsidiary will be cut by a third to just under 200 workers.
No staff cuts are expected at home in Japan. Staff of the Tokyo and Osaka offices will be asked to move to Mazda’s head office in Hiroshima, which usually involves some people leaving because they don’t want to go.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Saab, meh. Saturn, meh. Pontiac, Suzuki and Mitsubishi sigh, but ultimately, meh. Mazda, Nooooooooooooooooooooooooo. :(
Until Mazda realizes that the U.S. market is appliances and not zoom-zoom they will always be a bit player here with dismal sales. Their sales numbers could be in the ballpark of Nissan, Hyundai-Kia almost overnight if they built mainstream appliances. Very perplexing as to why they can't figure out this simple fact and continue along the zoom zoom path after decades of dismal results.
I don't see how Mazda can survive as an independent car maker. They have never gotten up to critical mass, and only survived the debacle that was the late 70s/early 80s thanks to the infusion of Ford money and expertise.
Mazda probably sells as many cars per dealer as anyone else. In College Station, TX, we have a Mazda dealer. Their market share is HUGE - at least 10% of the cars on local roads are Mazdas. Everything seems to sell, but the 3 and CX-7 are disproportionately numerous. The problem is that I've got dozens of choices for a Chevrolet dealer in Houston. There are only 4 Mazda dealers. This leaves the Mazda dealer a long way away for most of us. There's no reason the 3 and 6 shouldn't sell as well as the Civic and Accord. They're better cars.