Create a new account

It's simple, and free.

Mazda Company Analysis

Prior to the 1990s, Mazda Motor Corporation operated the subsidiary Mazda of America in the United States During the 1990s, however, a recession coupled by rising development costs, the yen and prices of cars saw MazdaÆs car sales in the United States decline. In 1992 the company sold half of its interests in its Flat Rock, Michigan, plant to Ford (Mazda, 2003, 2). In 1993 the company reorganized Mazda of America and made numerous staff cuts. By 1996, Ford decided to invest nearly a half billion dollars in Mazda, increasing its share in the company to 33% (Mazda, 2003, 2). In 1997 James Miller became President of the newly consolidated Mazda of North America. Mazda of North America has not been as successful as hoped. Mazda announced plans to close about 40% of its North American dealerships in 2000 and sales in the United States have declines approximately 3.9% in 20002, despite an extremely robust year for Mazda Motor Corp. in Japan and Europe (Mazda, 2003, 2). Operating profits also suffered a blow as Mazda of North America posted a 20.9% loss from the previous year with operating profit of 6,457 million yen (Jiji, 2003, 1). Mazda USA offers sedans, minivans, and sports cars and pickup trucks in North America. Goals of the company include its increasing sales, lowering costs, and establishing a ôstructure that can make profits with an annual production of 170,000 vehiclesö (Winds, 1998, 2).

The auto industry is highly competitive. Mazda competes against Nissan, Toyota, Honda, BMW, DaimlerChrysler, GM, and others. Barriers to entry are high, including startup costs, research and development costs, and advertising. The auto industry is a mature one with steady but flat growth. The downturn on the United States economy, increased environmental restrictions, and labor resistance to foreign manufacturers impact the company. The companyÆs strengths include its new product introductions, its position in the sports car...

Page 1 of 6 Next >

More on Mazda Company Analysis...

Loading...
APA     MLA     Chicago
Mazda Company Analysis. (1969, December 31). In LotsofEssays.com. Retrieved 23:16, March 18, 2024, from https://www.lotsofessays.com/viewpaper/1711589.html