Mazda has been hard at work standing on their own two feet since they and Ford split a few years ago. The Hiroshima-based company's major move arose when they borrowed to develop their SKYACTIV technology which they believe will be a game changer.
So far, the technology has made waves and Mazda intends on licensing its use to other car makers. This is but one plan being put into place to stifle loses and spending too much time in the red. Mazda expects a net loss of 100 billion yen, or $1.2 billion US by the end of the 1st quarter of 2012.
In order to resurface financially, Mazda also plans to sell stock and hopes to raise some much needed capital, possibly upwards of $1.9 billion US. The other option is to find a business partner with which it can share its technology and further development costs.
Business plan
Jim O'Sullivan, CEO of Mazda North American Operations, said that Mazda is "in the midst of an extremely challenging business environment." With this in mind, Mazda will attempt to downsize its North American operations.
In a memo sent to Mazda's employees, three options have been presented to the workforce and they are as follows: A "voluntary" package, a "redeployment process" and "involuntary" separations. The options are fairly self-explanatory.
CX-7 pulled in the US
Mazda has decided to pull the plug on the CX-7 in the US, stating that it and the CX-5 are too similar in size and target market to both be sold alongside each other in the same showroom. Certainly, the CX-5 is far more modern in nearly every which way. The real story would seem to be that the CX-5 is a far more profitable proposition for cash-strapped Mazda.
As for Canada, where the CX-7 is still quite popular, Sandra Lemaitre, Mazda Canada's Public Relations National Manager, stated to Auto123.com the following when asked about Canada's future plans pertaining to the CX-7 : "The US has made the business decision to discontinue the CX-7 and focus on the CX-5. In Canada, Mazda Canada will continue to sell the CX-7 in addition to the CX-5. The CX-5 will be sold in the same compact SUV segment as the CX-7, but we believe the target customer is different for each of those vehicles."
Mazda has always been a strong player in Canada. In fact, North America is the only region among Mazda's five that netted some growth through February.
Source: Automotive News
So far, the technology has made waves and Mazda intends on licensing its use to other car makers. This is but one plan being put into place to stifle loses and spending too much time in the red. Mazda expects a net loss of 100 billion yen, or $1.2 billion US by the end of the 1st quarter of 2012.
 |
| Mazda has decided to pull the plug on the CX-7 in the US, stating that it and the CX-5 are too similar in size. (Photomontage: Auto123.com) |
In order to resurface financially, Mazda also plans to sell stock and hopes to raise some much needed capital, possibly upwards of $1.9 billion US. The other option is to find a business partner with which it can share its technology and further development costs.
Business plan
Jim O'Sullivan, CEO of Mazda North American Operations, said that Mazda is "in the midst of an extremely challenging business environment." With this in mind, Mazda will attempt to downsize its North American operations.
In a memo sent to Mazda's employees, three options have been presented to the workforce and they are as follows: A "voluntary" package, a "redeployment process" and "involuntary" separations. The options are fairly self-explanatory.
CX-7 pulled in the US
Mazda has decided to pull the plug on the CX-7 in the US, stating that it and the CX-5 are too similar in size and target market to both be sold alongside each other in the same showroom. Certainly, the CX-5 is far more modern in nearly every which way. The real story would seem to be that the CX-5 is a far more profitable proposition for cash-strapped Mazda.
As for Canada, where the CX-7 is still quite popular, Sandra Lemaitre, Mazda Canada's Public Relations National Manager, stated to Auto123.com the following when asked about Canada's future plans pertaining to the CX-7 : "The US has made the business decision to discontinue the CX-7 and focus on the CX-5. In Canada, Mazda Canada will continue to sell the CX-7 in addition to the CX-5. The CX-5 will be sold in the same compact SUV segment as the CX-7, but we believe the target customer is different for each of those vehicles."
Mazda has always been a strong player in Canada. In fact, North America is the only region among Mazda's five that netted some growth through February.
Source: Automotive News