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Mazda: To Build Engine Factory in Mexico for $120M

Admin | 14.08.2013

Mazda Motor Corp. said Thursday it will build an engine factory at its new auto plant in Mexico, as Japan's most export-reliant car maker looks to bolster local production to further shield itself from currency fluctuations.

Mazda Motor Corp. said Thursday it will build an engine factory at its new auto plant in Mexico, as Japan's most export-reliant car maker looks to bolster local production to further shield itself from currency fluctuations.

The Hiroshima-based auto maker said it will spend $120 million to build the factory, which is expected to begin operations in October 2014. The factory will build engines that use its Skyactiv technology, Mazda's series of under-the-hood fuel-efficiency improvements, with plans to build 230,000 engines a year. The engines will be installed in the Mazda3 sports compact and Mazda2 subcompact that will be made at the Mexican plant at the same site.

Mazda currently builds Skyactiv engines in Japan and China.

The Mexican plant is the latest attempt by Mazda to diversify a production base that has been largely confined to Japan. Because it exports about 80% of its what it makes at home--the highest proportion of any of domestic auto maker--Mazda was especially hurt by the yen's strong spell, suffering four consecutive years of losses through March 2012.

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