Mazda Announces New 'Mazda Advancement Plan' Mid-Term Plan.

Tokyo, Japan, Mar 23, 2007 - (JCN Newswire) - Based on its long-term strategy and looking ten years ahead, Mazda Motor Corporation (TSE: 7261) has announced its new, four-year mid-term plan, the Mazda Advancement Plan (MAP), for fiscal years 2007 through 2010. Manufacturing innovation and accelerated structural reforms will be key focus points during this period. Other key areas include continuing to improve Mazda's brand value and increasing business efficiencies together with maintaining a consistent and steady growth rate to position Mazda for a successful future.

Mazda President and CEO, Hisakazu Imaki, said, "Under the Mazda Momentum plan, Mazda succeeded in its efforts to build a solid foundation for consistent and steady future growth. We understand the challenges ahead and are addressing them. The next steps that Mazda needs to take for the future are clear: deepen our synergies with Ford, improve Mazda's brand value and seek increased business efficiencies. Our new mid-term plan, "Mazda Advancement Plan", has three numerical targets to be achieved by 2010: 1.6 million global retail sales, an operating profit over 200 billion yen, and a return on sales (ROS) ratio of six percent, in addition to a stable payout of dividends."

Synergies with the Ford Motor Company, attained through deep cooperation in a number of areas and long considered a 'win-win' partnership, will continue to be a top priority for Mazda. In addition, better brand value is to be achieved through desirable new products along with quality and customer retention improvements to further evolve Mazda's enduring Zoom-Zoom brand ethos. Mazda will also continue to initiate structural reforms for improved business efficiencies, with particular emphasis on key models, enhanced product competitiveness through integrated development, manufacturing and purchasing activities, as well as manufacturing innovation and cost optimization that will lead the company into another era of future growth.

Overview of the New Mid-term Plan

1. FY2010 Targets

- Global retail volume of over 1.6 million units

- Operating profit of over 200 billion yen

- Operating ROS of 6 percent

- Stable payout of dividends

2. Action items

(1) Brand-related

1. North America 

- Strengthen the product lineup by introducing products that reflect the voice of the customer. Improve customer satisfaction at all touchpoints.

- Accelerate development of next-generation dealerships that are consistent with Mazda's brand strategy. Improve sales productivity at exclusive dealers.

- Strengthen marketing initiatives to deepen relationships with Mazda's younger customer base.

- Work toward gaining 100 percent control of distributors in the United States and Canada.

2. Japan

- Strengthen product offerings in the registered vehicle segment.

- Move forward with establishing dealers in the Tokyo metropolitan region in areas without dealer representation at present. Grow profitability at dealers.

- Shift to next-generation dealer outlets in alignment with Mazda's brand strategy.

- Achieve outstanding satisfaction levels for customers throughout the vehicle ownership experience.

3. Europe

- Deliver advanced powertrains which will improve customer satisfaction.

- Sustain profitability in key mature markets by improving sales productivity and forging ahead with dealer openings in major urban areas.

- Enter selected emerging markets.

4. China

- Achieve a smooth launch of operations at the Nanjing plant.

- Develop the China dealer network to support sales of 300,000 units per year.

- Execute efficient product launches.

5. ASEAN and Australia

- Strengthen the ASEAN market(s) model lineup and launch the CX-7 and CX-9 models in Australia.

- Reinforce sales in growth markets by focusing on urban areas.

- Strengthen the ASEAN Regional Sales Company. Improve customer satisfaction levels in Australia.

(2) Products and Technology

1. Over the course of the next four years, increase R&D investment by 30 percent as well as raise capital investment expenditures by 50 percent compared to the last four years.

2. Enhance Mazda's business structure through an evolution of current key model lineups and by promoting a new business model.

3. With evolved Zoom-Zoom attributes, accelerate the development of next-generation technology for further business growth after 2011.

(3) Production System

1. Increase production capacity in Japan

- Expand production capacity in Japan to 996,000 units in FY2007 through increasing production at the Hiroshima plant by 31,000 units and by 67,000 units at the Hofu plant.

- Concurrently raise engine production capacity.

2. Overseas production facilities

- Smoothly launch the Nanjing plant in China that will introduce an evolved Mazda Manufacturing System.

- Improve quality and cost competitiveness at production facilities in Thailand and the U.S.

3. Future production capacity expansion policy

- Promote manufacturing innovation to enable volume and model mix flexible production which is competitive in quality and cost.

- Build sales in all markets and develop overseas production capacity by taking into account the balance in each market of sales demand and resource availability.

- Maintain domestic production capacity levels and transfer the technical excellence developed in Japan to other regions.

(4) Human Resources Development

1. Promote the training of people who can drive globally-oriented, 'One Mazda' -style growth.

2. Develop people who energize each workplace.

3. Foster a dynamic work environment where employees can thrive.

About Mazda Motor Corporation

Mazda Motor Corporation (TSE: 7261) started manufacturing tools in 1929 and soon branched out into production of trucks for commercial use. In the early 1960s, Mazda launched its first passenger car models and began developing rotary engines. Still headquartered in Hiroshima in western Japan, Mazda today ranks as one of Japan's leading automakers, and exports cars to the United States and Europe for over 30 years. Overseas sales account for more than half of total turnover. Mazda has two main production sites in Japan and 19 overseas facilities. Overseas sites include joint ventures based in the United States, and in Thailand with Ford Motor Company, Mazda's largest shareholder.

Source: Mazda Motor Corporation

Contact:

Mazda Motor Corporation
Ms. Mayumi Handa
[e-mail]
[phone]

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