Mazda has announced a new mid-term plan aimed at increasing sales and profits over the four years from fiscal 2007 to 2010.
Under the new plan, called the Mazda Advancement Plan, the company aims to achieve global sales of 1.6 million units, operating profits of more than 200 billion yen ($1.7 billion) and a profit margin of 6 percent on sales by 2010.
Mazda also wants to strengthen its ties with Ford Motor Co., which owns a third of Mazda.
“Under the Mazda Momentum Plan, Mazda has successfully completed its efforts to build a strong foundation for steady growth into the future,” CEO Hisakazu Imaki said in a statement. “We understand the challenges ahead and are working to address them. The next steps Mazda should take for the future are clear: deepen synergies with Ford, enhance Mazda's brand value and pursue greater business efficiency.”
Mazda aims to improve customer satisfaction in North America, and as part of that goal, it has cited “introducing products that reflect customer feedback.” It also seeks to accelerate the launch of next-generation dealerships and improve sales productivity at its exclusive dealerships.
Additionally, Mazda wants to use marketing efforts to improve its relationships with younger customers (the brand's buyers are among the youngest in the U.S.) and gain full control over its dealerships in the U.S. and Canada.
In Japan, Mazda is opening new dealerships in the greater Tokyo area, aiming to improve customer satisfaction throughout the entire ownership lifecycle of a Mazda vehicle.
Goals in Europe include introducing advanced powertrains, maintaining profitability with new dealerships in major urban areas and launching in select emerging markets.
Mazda has set a sales target of 300,000 units per year through its dealer network in China, and plans to launch the CX-7 and CX-9 cross-utility vehicles in the Association of Southeast Asian Nations (ASEAN) region and Australia.
Meanwhile, the company is prioritizing research and development, pledged to increase R&D investment by 30% and capital expenditures by 50% compared to levels over the past four years.
On the production side, Mazda wants to increase production at its Japanese plants, Hiroshima and Hofu, by 31,000 and 67,000 units, respectively, in fiscal year 2007, bringing total annual production in Japan to 996,000 units.
Mazda also aims to improve quality and cost competitiveness at its plants in Thailand and the United States, and to ensure a smooth launch of its new plant in Nanjing, China, which will be the first to adopt Mazda's advanced production methods.
Mazda is reportedly in talks with the Thai government about expanding production at its Thai plant, which makes light trucks for Mazda and Ford.
The company also announced an environmental plan called “Sustainable Zoom Zoom,” which calls for a continued focus on hydrogen fuel cells, including the launch of commercial leasing of the Premacy Hydrogen RE Hybrid in 2008 and the launch of a new hybrid electric vehicle based on the Hydrogen RE Hybrid in 2010.
Mazda has announced that it plans to introduce a smart idle stop system in Japan and a flex-fuel engine in Northern Europe in 2009.
There is a demand for the introduction of clean diesel engines that comply with emission regulations in Japan and North America by the beginning of the next century.
Mazda's signature rotary engine has not been ignored in the environmental plan, with the company due to unveil a new generation of gasoline rotary engines with better power and fuel efficiency by the start of the next decade.
Mazda has said it will introduce an automatic transmission by the beginning of the next decade that will perform like a manual car but be more fuel efficient.
