New Projects and Investment in Mexico X Congreso Internacional de la Industria Automotoriz México March 28th, 2012 Keishi EGAWA President and CEO Mazda Motor Manufacturing de Mexico, S.A. de C.V. 1
1. Profile of Mazda Group 2
1.1 Offices Hiroshima Head Office: 3-1 Shinchi, Fuchu-cho, Aki-gun, Hiroshima Other Offices: Tokyo Head Office: Chiyoda-ku, Tokyo Osaka Branch: Kita-ku, Osaka Hofu Plant: Hofu, Yamaguchi Mazda R&D Center Yokohama: Yokohama, Kanagawa 3
1.2 Research & Development 1. Headquarters R&D Divisions Fuchu-cho, Aki-gun, Hiroshima, Japan 2. Mazda R&D Center (Yokohama) Yokohama, Japan Overseas: 3 & 4. Mazda North American Operations Irvine, California Flat Rock, Michigan 5. Mazda Motor Europe GmbH. (MME) European R&D Centre Oberursel, State of Hessen, Germany 6. Mazda Motor (China) Co., Ltd. China Engineering Support Center JiaDing District, Shanghai 4
1.3 Major Production Facilities in Japan Hiroshima Plant Hofu Plant 1 Nakanoseki Plant Production Capacity Hiroshima Plant [K upa] Hofu Plant Vehicle 582 544 Unit 1776 (*1) 2025 (*2) (*1) Engines (*2) Transmissions 2 Nishinoura Plant 5
1.4 Major Production Facilities Overseas USA Thailand China Changan Ford Mazda Automobile Co., Ltd. Nanjing Company Changan Ford Mazda Engine Co., Ltd. Auto Alliance International, Inc. Auto Alliance (Thailand) Co., Ltd. Production Capacity [K upa] [K upa] Vehicle Auto Alliance International Auto Alliance Thailand Changan Ford Mazda Automobile Unit Changan Ford Mazda Engines 120 (240) 110 (220) 80 (134) 320 Note: ( ): Ford + Mazda 6
1.5 Mazda Global Sales Network 6 R&D sites and 130 distributors in all over the world. R&D sites Distributors 7
1.6 Global Production & Sales <Production> 2007 2008 2009 2010 2011 Japan 995,511 1,078,690 717,175 912,836 813,302 Overseas 293,967 270,702 267,345 394,704 352,289 Global Production 1,289,478 1,349,392 984,520 1,307,540 1,165,591 <Sales> 2007 2008 2009 2010 2011 U.S.A. 296,109 263,949 207,767 229,566 250,426 Canada 86,659 84,974 73,672 78,662 69,186 Mexico 16,604 21,997 18,914 25,117 29,860 North America 399,372 370,920 300,353 333,345 349,472 Japan 254,137 244,623 204,373 223,861 189,990 Europe 311,247 339,969 256,426 217,502 183,025 China 101,900 127,846 179,679 239,709 214,799 Other Countries 268,491 267,936 220,147 271,667 185,745 Mazda Sales 1,335,147 1,351,294 1,160,978 1,286,084 1,123,031 8
1.7 Company Profile and Major Data As of March 31, 2011 Company name Mazda Motor Corporation Founded January 30, 1920 Representative Takashi Yamanouchi, President and CEO Employees Unconsolidated: 21,747 Consolidated: 38,117 Main Business Principal Products Manufacture and sales of passenger cars and commercial vehicles Four-wheeled vehicles, gasoline reciprocating engines, diesel engines, rotary engines, automatic and manual transmissions for vehicles 9
1.8 Brief History of Mazda 1920 1931 1950 1960 1967 1970 1979 1984 1991 1996 2004 2008 2011 Toyo Cork Kogyo Co., Ltd is founded in Hiroshima, Japan. Three-wheel truck production starts. Introduces first small 4-wheeled truck, Mazda CA. Introduces R360 Coupe, first Mazda 2-door passenger car. Full-scale export to the European market starts. Introduces Mazda Cosmo Sports (110S), Mazda's first rotary engine vehicle. Exports to the U.S. begins. Ford acquires a 25% equity stake in Mazda. Company is renamed as Mazda Motor Corporation. Mazda 787B wins the Le Mans 24-Hour Endurance Race claiming the first victory for a Japanese automobile and the rotary engine. Mazda and Ford enter into a closer tie-up by increasing Ford s equity share from 25% to 33.4%. The 700,000th Mazda Roadster (MX-5) earned a Guinness World Record as the sports car with the highest number of units produced in its class. 3 rd generation Mazda2 wins 2008 World Car of the Year Award. Global introduction of SKYACTIV technologies. 10
2. Mazda in Mexico 11
2.1 Mazda s History in Mexico <Mazda s History in Mexico> Dec. 2004 Established Distributor (Mazda Motor de Mexico) Oct. 2005 Started sales of Mazda3 HB&SDN, Mazda5, Mazda6 May 2006 Started sales of MX-5 Miata Sep. 2006 Started sales of CX-7 Feb. 2007 Started sales of CX-9 Jun. 2011 Announced to build vehicle & engine plants to start operations in 2013 Jul. 2011 Started sales of Mazda2 Oct. 2011 Began construction of Mexican production facility <Mazda's Distributor in Mexico> Company name Mazda Motor de Mexico, S. der.l. de C.V. Location Centro de la Ciudad, Santa Fe, Mexico City Established December 2004 Number of employees 37 Investment ratio Mazda Motor Corporation 99.0% Mazda Motor International 1.0% Investment amount MXN 53.719 mil. Number of dealerships 32 12
Sales Volume Market Share(%) 2.2 Mazda Sales Volume in Mexico 35,000 4.0% 30,000 3.1% 3.3% 3.5% 25,000 20,000 15,000 10,000 0.7% 1.5% 16,604 2.1% 21,997 2.5% 18,914 25,116 29,860 3.0% 2.5% 2.0% 1.5% 1.0% 5,000 7,495 0.5% 0 0.0% 2006 2007 2008 2009 2010 2011 Sales Share 13
2.3 Mazda Sales in Mexico by Product 14
2.4 Mazda s Presence in México Mazda s growth in Mexico remained strong in 2011, with sales increasing 18.9% year-on-year to a record 29,860 units, and a record market share of 3.3% to occupy the 8 th position. <Sales volume by models in Mexico> (Units) 2006 2007 2008 2009 2010 2011 Mazda2 - - - - - 2,005 Mazda3 4,750 6,939 9,502 9,218 13,210 13,559 Mazda5 651 721 857 520 548 785 Mazda6 1,003 980 2,241 2,193 3,218 2,171 CX-7 868 6,089 7,014 5,204 5,420 9,249 CX-9-1,614 2,204 1,660 2,573 1,915 MX-5 Miata 223 261 179 119 147 176 Total 7,495 16,604 21,997 18,914 25,116 29,860 <Market share> 2006 2007 2008 2009 2010 2011 Mazda total 0.7% 1.5% 2.1% 2.5% 3.1% 3.3% 15
2.5 A picture of Mazda dealer example in México 16
2.6 Present Dealer Development Status Tijuana Operating: 32 UNDER CONSTRUCTION 2 TOTAL 34 Hermosillo Chihuahua Torreón Saltillo memo: Number of owners: 21 Culiacán Aguascalientes León Monterrey (2) San Luis Potosí Querétaro Tampico Morelia Mexico City (6) Veracruz Mérida Guadalajara (2) Metepec Coatzacoalcos 100% Exclusive Standalone Cuernavaca Puebla Villahermosa 100% Retail Revolution Estimated investment US$110 million (@32dealers) Oaxaca Acapulco Tuxtla Cancún As of January, 2012 17
3. The Position of New Mexican Plant in Mazda Group 18
3.1 Partnership with Sumitomo Corporation Mazda Motor Manufacturing de Mexico S.A. de. C.V. + Sumitomo Corporation 19
3.2 Plant Objectives The Mexico PRODUCTION FACILITY will be established as a compact vehicle manufacturing hub mainly for Central and South America, and will include both VEHICLE and ENGINE assembly plants. 20
3.3 Plant Location The manufacturing plant will be constructed in Salamanca city, Guanajuato state, 250 kilometers northwest of Mexico City. Texas Louisiana 21
3.4 Possible Models to be Manufactured in the Plant The new facility plan to produce the NEXT generation Mazda2 and Mazda3 models with an annual production capacity of 140,000 units. [For Reference only] Current Mazda 3 [For Reference only] Current Mazda 2 22
3.4 Possible Models to be Manufactured in the Plant Current Product Assumption to be manufactured in the plant Mazda 3 Mazda CX-7 Mazda 6 Mazda 5 Mazda 2 Mazda MX-5 Mazda CX-9 23
3.5 Plant Overview Start of Production: 4th Quarter of FY2013 Annual Production Volume Planned: 140,000 units Number of Employees Planned: approx. 3,000 3.6 Supplier Park Approx. 200,000 sqm allocated to core suppliers for large stamping/plastic molding parts and seats in order to maximize business/logistics efficiencies. 24
Stamping Parts Class A & Body Shell Suspension Plastic Parts 3.7 Supply Chain of Stamping Parts and Painted Parts Outside Suppliers MMMdM Supplier Park MMMdM Bumper R. Spoiler Molding Molding Painting & Assembly Liftgate Garnish Molding Painting - Cross Member - Lower Arms - Trailing Link - Bumper Reinf. - Wheel Apron - Dash Panel - F & R Frames - F. Floor - Roof - Other Sheet Metals Stamping Stamping E-coat Stamping Shop Body Assembly & Body Paint Shops Trim & Final Assembly 25
3.8 Mazda Suppliers to Operate in Our Site Supplier Name Ownership Major Products Daikyo Nishikawa Mexicana S.A. de C.V. Daikyo Nishikawa Interior & Exterior Parts, e.g. Instrument Panel and Bumper AKI Seat Manufacturing S.A. de C.V. Delta Kogyo Toyo Seat Seat Assembly Y-tec Keylex Mexico S.A. de C.V. Y-tec Keylex Stamping Parts, e.g. Cross Member, Bumper Reinforcement and Frames 26
4. Parts Sourcing Activities of New Plant 27
4.1 Sourcing Strategy Select the most competitive suppliers in cost and quality through an optimized localization to fulfill the Mexico/MELCOSUR FTA and NAFTA requirements. 28
4.2 Sourcing Schedule Mazda 3: Nearly finished. Mazda 2: To commence in a few months. 4.3 Quality Requirements Common requirements: ISO9001/TS16949 certified. Unique requirements: Mazda Quality Requirements for Suppliers (QRS)* * QRS to be provided to suppliers when a Request for Quotation issued. 29
4.4 Purchasing Contacts Koichi KINOSHITA Staff Manager E-mail: kinoshita.k@mazda.co.jp Yasuhiro YAMADA Assistant Manager E-mail: yamada.yasuh@mazda.co.jp Mazda Latin American Operation Preparation Office, Hiroshima, Japan 30
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