Mazda 2014 Annual Report Download - page 24

Global Production Structure Strengthening: Mexico Plant, in Operation
Start of Production at Mexico Plant
In its Structural Reform Plan announced in 2012, Mazda stated its plan for a 50:50 domestic and
overseas production ratio and, with a view to enhanced resilience to foreign exchange fluctua-
tions, the establishment of a global production footprint. Forming part of these plans, MMVO is
of paramount importance as a global strategic base, and MMVO’s success is essential for Mazda’s
growth in the years to come.
Mexico is enhancing its free trade policies, such as free trade agreements—including the
North American Free Trade Agreement (NAFTA)—and economic partnership agreements. The
country is also very conveniently situated for transporting products to North America, Central
and South America, and Europe. As the largest overseas base supplying these markets, MMVO
will be driving Mazda’s structural reform.
MMVO On-Site Supplier Park
Located adjacent to the vehicle assembly plant on the site of Mazda’s plant in Mexico are the
bases of cooperating component makers that produce interior and exterior parts and sheet
metal parts as well as seats and other large-size automotive assemblies. A first for Mazda, this
initiative is intended to reduce logistics costs through increased transport efficiency by integrat-
ing production of large-size automotive assemblies on the MMVO site. This move can be expected
to have the effect of reducing parts inventory by shortening logistic lead times. We will continue
to promote efficiency and cost improvements by heightening the sense of unity between each
manufacturer, including Mazda.
Increase of Production Capacity
Initially, annual production capacity at MMVO
has been set at 140,000 units, but as we expand
production to other models, such as the new
Mazda2, annual production capacity will be
increased to 230,000 units by the fiscal year
ending March 2016. MMVO will be enhanced as
a supply base for the Americas and Europe as
well as the domestic Mexican market. There are
plans to have an engine machining plant opera-
tional in October 2014 to produce the SKYACTIV
TECHNOLOGY engines installed in the Mazda3
and Mazda2 manufactured at MMVO.
Mass production at the new Mazda de Mexico Vehicle Operation (MMVO) plant com-
menced as planned in January 2014. The plant was completed following the announce-
ment of our business plan for production in Mexico in 2011. The first model to roll off the
production line was a SKYACTIV TECHNOLOGY-equipped Mazda3 sedan. Producing
Mazda’s SKYACTIV models, MMVO will be delivering
driving pleasure as well as out-
standing environmental and safety performance
to customers around the world.
Salamanca,
Guanajuato
Name: Mazda de Mexico Vehicle Operation (MMVO)
Location: Salamanca, Guanajuato
Models in production:
Mazda3, Mazda2, Toyota brand compact vehicles
Production destined for:
North America, Central and South America,
Europe
Investment: Approx. US$770 million
Investment ratio:
Mazda 70%, Sumitomo Corporation 30%
Number of employees:
Approx. 3,100 (January 2014)
Approx. 4,600 (when fully operational)
Start of volume production:
January 2014
Annual production capacity:
140,000 units (initially)
230,000 units (when fully operational)
Mexico Plant Profile
Annual Production Capacity
Units
140,000
180,000
50,000
At start of volume
production
At end of March 2016
(planned)
Mazda3, Mazda2
Toyota Brand Compact Vehicles
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Mazda Annual Report 2014
CONTENTS
Message from Management
Review of Operations
Introduction
Brand Value Management
Foundations Underpinning
Sustainable Growth
Financial Section