Mazda opens new factory in Mexico

The move is expected to strengthen Mazda’s presence in the Central and South American car markets, which has been growing rapidly in recent years. The Mexican factory will be located in Salamanca, some 250 kilometres northwest of Mexico City, while the Brazilian sales company will be opened in Sao Paulo.

Mazda and Sumitomo will invest US$500 million into the factory, at a 70% - 30% split respectively. The new factory will produce the Mazda2 and Mazda3 models, and employ about 3,000 workers once it begins operations in 2013. Annual production capacity is expected to reach 140,000 units.

Mazda and Sumitomo will also open a new sales company in Sao Paulo, Brazil, named Mazda Motor do Brasil Limitada, with the investment once again being split 70% - 30% between the two companies. Brazil is the world’s fourth largest car market, after China, USA and Japan, with over 3.5 million cars sold in the South American country in 2010. Mazda will initially sell cars imported from Japan in Brazil, but will eventually import cars produced at the Mexican plant.

Source: Mazda