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Burnsville, MN 55306

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Mazda to Overhaul Flat Rock Plant?

To ensure long-term sustained success, Mazda Motor Corp. is examining different options for its U.S. plant operated jointly with partner Ford Motor Co. in Flat Rock, Michigan. Mazda CFO, Kiyoshi Ozaki has recently told the press that the company will make an official statement on their plans for the plant in Flat Rock, Michigan by the middle of this year.

Ultimately, the Japanese automaker aims to increase U.S. domestic production by 33 percent to 1.1-million units by March 2016. That's a jump well over 272,000 compared to the 827,910 units produced last fiscal year. Ozaki has also indicated that Mazda is looking to start production in Mexico, adding to a facility in Columbia that has a limited supplier base.

The reality is that to make a profit, the Flat Rock facility needs to run at 70 percent of its 240,000-unit capacity. Last year, the plant produced only 45,000 MAZDA6 units and 77,586 Mustang models, according to the Automotive News Data Center.

Ozaki indicated that Mazda may overhaul the factory, or change the models built there. While anything looks possible at this point, we at Walser Mazda are obviously hoping for the later. However, we're trying not to get our hopes too high. For, when asked if Mazda would pull out of the Flat Rock, MI venture, Ozaki vaguely answered, "Never say never."1

Moving forward, Mazda hopes to achieve optimum profitability by introducing a more fuel-efficient engine. Such advancement would be expected to both fuel demand and increase domestic production in the U.S.

As you can see, regardless of what Mazda decides to do with the Flat Rock plant, the company strives for advancement and continues to set their goals high. Stay tuned for Mazda's final verdict. Walser Mazda in Burnsville, Minnesota will keep you up to date.

Categories: News, Burnsville MN


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