Second U.S. Mazda Factory Never Existed
Back when we learned that Ford might be selling its share of Mazda, we didn’t mention that Mazda was scrapping plans to build a second factory in the US. Good thing too. Automotive News [sub] cites a Nikkei report which claims Mazda had considered using a shut-down Ford plant or building a new one with Ford, aiming to produce fuel-efficient mid-size cars and other models from the first half of 2010. The report blames the deepening downturn in the world’s largest vehicle market for Mazda’s decision to scrap the project. No doubt hoping to keep the appearance of an even keel, Mazda reps now tell Business Week that they never had plans to build another U.S. factory. “As outlined in our midterm Mazda Advancement Plan, announced in March 2007, Mazda has no plans to establish a new vehicle production facility in North America,” the company says. Mazda did not, however, get the story straightened-out until after their stock dropped nine points after the Nikkei report. Then again, by the standard of the last few weeks, single-digit drops ain’t half bad.