Mazda 2011 Annual Report Download - page 13

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to the greater-than-expected appreciation of the yen and
rise in raw material prices. First, we will improve costs in
vehicles produced in Japan. We have decided to pursue
additional cost improvements in both current and new-
generation vehicles. Second, we plan to raise the percentage
of overseas procurement to 30% from the current 20%.
Then going forward, we intend to improve costs and reduce
exchange rate risk by increasing production in emerging
markets and other overseas locations, while raising the
percentage of local procurement at the same time.
3. Environmental and Safety Technologies
Mazda is making steady progress in developing environ-
mental technologies under our Building Block Strategy,
which involves thoroughly enhancing a car’s basic perfor-
mance while adding electric devices one step at a time.
The new Demio, launched in Japan on June 30 as the
first product equipped with SKYACTIV TECHNOLOGY, will
be followed by a series of launches of new-generation
vehicles equipped with superior environmental and
safety technologies.
4. Emerging Markets
In China, which has grown into a major market, we are
building a sales structure that can handle 400,000
units. With the consolidation of production of the Mazda3
at the Nanjing Plant and the introduction of new models,
we are working to increase sales with the aim of continued
growth going forward.
The ASEAN market is also showing significant growth
in countries like Thailand, Indonesia, and Malaysia, and
sales are growing along with increased production at
AutoAlliance (Thailand) Co., Ltd. (AAT). In terms of
production, AAT’s passenger vehicle plant began
manufacturing the Mazda2 hatchback in October 2009,
and started manufacturing the Mazda2 sedan and the
Mazda3 this fiscal year, and local assembly of the
Mazda3 has also begun in Malaysia. In terms of sales,
the AAT-manufactured Mazda2 has had a strong recep-
tion, and in the March 201 1 fiscal year we achieved
record sales volumes in Thailand, Indonesia, and
Malaysia. We also commenced sales in Vietnam from
March 201 1. In addition, we will continue our study of
local assembly in Russia.
5. Ford Synergies
Synergies with Ford include the all-new Mazda BT-50
pickup, which has been in joint development, with manu-
facturing at AAT and sales scheduled to start during the
March 2012 fiscal year.
We continue to maintain our strategic cooperative
relationship with Ford. Ford and Mazda have maintained
a close relationship for more than 30 years, and going
forward, we have agreed to cooperate in areas of mutual
benefit like joint businesses, existing projects, and
exchanges of technological information, and to maintain
our win-win, strategic cooperative relationship.
Q5 What is your roadmap for the Medium- and
Long-Term Outlook included in the Framework for
Medium- and Long-Term Initiatives?
No changes in our commitment to growth
We are responding to a weaker external environment
that includes uncertain demand in developed markets,
raw material price hikes, and a stronger yen through
the introduction of new-generation products, with the
aim of bringing innovation to sales methods and further
increasing brand value. We are also accelerating cost
improvements through Monotsukuri Innovation.
Mazda Annual Report 201 1 1 1