Mazda to Upgrade U.S. Dealer Network, Cull Underperformers, Focus On 35 Key Markets

TTAC Staff
by TTAC Staff
mazda to upgrade u s dealer network cull underperformers focus on 35 key markets

Akira Marumoto, Mazda’s executive VP for North America, said that the company will revamp its dealer network as it aims to increase U.S. sales by a third over the next two years. Automotive News reports that underperforming dealers will be culled and dealers in poor locations will be encouraged to open up new stores in more promising places. The company has identified 35 key metropolitan markets where it will focus its sales and marketing efforts. Mazda is highly dependent on North American sales with almost a third of its global sales taking place here.

Mazda currently has 637 franchised dealers in the United States. Marumoto, speaking at last month’s Tokyo auto show, wouldn’t say how many U.S. dealers the company thinks it needs, or how many dealers might be jettisoned or moved, but he did say that the company will be “aggressive” and that “Our initiatives are bearing fruit.” 2013 will likely be the fourth year in a row that Mazda had increased its U.S. sales.

Masamichi Kogai, Mazda’s new CEO set a goal to sell 400,000 units in the fiscal year ending March 31, 2016, up from a projected 300,000 units in the current fiscal year, which itself would be an increase of about 10% over the previous fiscal year that ended March 31, 2013. Through November, sales are up 5% over last year. 400,000 units would be a record for Mazda, whose previous best year was 1986, when it sold almost 380,000 cars and light trucks in the U.S. Marumoto said that most of the additional 100,000 U.S. sales will come from the CX-5 small crossover, which competes in a hot segment, and the newly redesigned Mazda3. Lower volume vehicles like the Miata MX-5 and Mazda’s larger CUV offering, the CX-9, are hoped to show incremental increases in sales with greater profit margins than the high volume vehicles. The introduction of a diesel engine is hoped to increase Mazda6 sales as well.

Marumoto said that the CX-9 and the Miata will soon be redesigned. “Toward the fiscal year ending March 2016, we will have a new CX-9, and those are the models where we are prioritizing for profit improvement,” he said. “The MX-5 Miata, because it’s a sports car, they sell quite well in the first three years.” The next Miata is being developed in conjunction with Fiat, which will sell the roadster as an Alfa Romeo.

Join the conversation
2 of 59 comments
  • Dtremit Dtremit on Dec 18, 2013

    Pity they won't have a replacement for the CX-9 until 2016 -- it's getting a bit long in the tooth already. I wish I had better things to report on the dealer front, but I went through two bad ones before finding one that wouldn't hassle me about basic warranty service. The dealer I bought my 6 from had installed an optional shock sensor for the alarm; the sensitivity was so high that passing trucks and buses would trigger the alarm when I parked on the street. And yet the dealer tried to weasel out of providing warranty service for a fix that ended up being a quarter turn of an adjustment screw.

  • 3Deuce27 3Deuce27 on Dec 18, 2013

    Cutting dealers won't help unless it throws more sales to another 'nearby' dealer which helps it survive and helps it increase its advertizing funds. I don't need a dealership and its associated costs. I don't need to be sold, and usually/always know more about the vehicle of interest then the dealer/salesperson. Would just prefer to buy online and pick up a vehicle at an OEM distribution/service center. Something Tesla is trying to do. Bought three new Miata's and a new MPV from Royal Moore Mazda in Hillsboro, Oregon. I have nothing but kind words for them and their Mazda inventory. Their discounted, end of model year, Miata/Mazda sales, make dreams come true, if your not a stickler for color or options. Check them and their sales, out...>

  • Inside Looking Out The next 4Runner will be BEV.
  • The Oracle This is a proper Italian red sauce turd.
  • Carson D This isn't a notice of a wait time for 4Runner fans. This is a deadline for the opportunity to buy one new before they're gone. Whatever comes next, there is no possible way that it will be as good at doing 4Runner things as what is available today.
  • Bkojote There's a lot "just right" with the current 4Runner, and having spent time in more contemporary equivalents for road trips, I completely understand why they sell a ton of these.Here's some topics that aren't super common among 4runner owners - excessive carbon buildup in the engine after 40,000 miles (Audi/VW), bent valves (Bronco) , failed oil coolers (Jeep), cracked engine blocks (Jeep), dead vehicles from OTA updates (Chevy Colorado), being stranded due to opening the door too many times (Defender), malfunctioning engine sensors (Defender, VW), dead batteries due to electrical system malfunctions (Jeep), unusable defoggers (Jeep), waiting for seat heaters to boot up (Subaru), randomly catching fire (Kia/Hyundai), crappy build quality (Ford, Tesla).The interior feels solid and rattle free, and everything feels substantial in the way a Jeep Grand Cherokee or Kia Telluride does not. 14 year run means accessories are plentiful and well sorted. The control inputs from the radio to heated seats to climate control work better than 99% of the cars you can buy new at this point and are dead simple and ergonomically satisfying. Even dynamically (I drove a model with the KDSS system to be fair) it is a surprisingly composed vehicle on mountain roads- it's far more civilized than a Bronco or Wrangler, and hell, it was far more pleasant than the past two peastant-grade Benz crapmobiles I've been in.So I get it- car journalist rags whine about how overly complicated and tech-heavy modern vehicles are while their substance is cost cut, but here's the literal definition of 'don't fix it if it aint broken.' . It's a trusty Ford Econoline in a world of craptastic Ram ProMasters.
  • Frank Sounds like they dont want to debut it at the same time as the new Land Cruiser, which is probably smart. The new 'runner is ready to go I am told, so there's a reason for this delay.