Mazda Is Out Of the Automobile Manufacturing Business within the US

[xcel]

Mazda’s Flat Rock, MI plant built its last Mazda6 this afternoon as production for the all-new model heads back to the home country of Japan.

Wayne Gerdes - CleanMPG - Aug 24, 2012

Current Mazda6 and its uncompetitive 22/31 mpgUS city/highway with the 6-speed AT (21/30 with the stick).

This story has all the makings of a “Damn the torpedoes…” tale.

The above seems like a classic order from a prominent Navy Rear Admiral under duress doesn’t it? In this case it is Mazda bowing out of the US production arena for possibly friendlier home ports. Unfortunately there is one problem with this scenario? Japan is the home to the sky high and uncompetitive Yen making an opportunity for actual profits few and far between.

Mazda has previously announced that the next-generation 2014 Mazda6 sedan is now being manufactured at its facilities in Hiroshima (The All-New Mazda6 Era Begins Today) with a future Mazda2 and 3 coming from a recently broke ground manufacturing facility in Mexico leaving the US built Mazda6 between a literal rock and a hard place. Sales of the aging 6 have fallen precipitously with just 1,289 Mazda6’s being sold in July down 49.3% from July of 2011.

The 50/50 Mazda/Ford AutoAlliance plant produced not only Mazda6’s but Mustangs as well. While Mazda has not sold its interest in Flat Rock, it was indeed a sad day for an automobiles last run down a US assembly line.

[EdwinTheMagnificent]

I think this is the plant that produced both the Probe and the MX-6 in the 90's. It's a little sad to think that Mazda has lost the battle against the Camry and Accord ; maybe they will return with a more competitive offering next year. The 6 with SKYACTIV-D will be nice , but most North Americans want some sort of petrol engine. And they want the "power of a V6,the fuel efficiency of a 4".
Good luck, Mazda. Can you send us a nice 2 for Christmas ?

[rossbro]

Are the Japs still pissed off over ' The Bomb' ? Can't believe they're quitting the USA. Won't exchange rates make their products too costly?

[bestmapman]

I guess it is just too hard for them to manufacture here.

[MaxxMPG]

With Ford and Mazda split apart, and Ford pulling Mustang production out of Flat Rock, Mazda couldn't keep the plant going on their own. As I understand it, it's far too large for the volume that Mazda needs, and auto plants can't remain profitable when they're not running at or near capacity. Building only in Japan will make Mazda vehicles far more sensitive to currency exchange rates, but I bet it's still cheaper than keeping a mega-mall-sized factory running at 25%.

It's a shame that the UAW has a stranglehold on midwest manufacturing. Considering the alliance of Mazda and Kia 20 years ago (early Kia vehicles used Mazda designs and components under license), I could see Kia or Hyundai moving some production to a facility like Flat Rock to address their current production limitations while keeping Mazda here in the US, even if only on one of the assembly lines within the plant.