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Posted on February 16, 2008 by Anthony Fontanelle | Posted under Automotive
“Mazda Is A Real Asset" - Ford
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"Mazda has been a very important ingredient," said Ford CEO Alan Mulally in an interview with the Detroit News. "Clearly, their experience in design and manufacturing and driving customer acceptance of smaller vehicles is a real asset." Last year, the Japanese automaker racked up record sales not just in America but around the globe. Mazda reported Wednesday another profitable quarter. The automaker is also anticipated to post record earnings for a seventh straight year when full-year results are released in April. Mazda's net profit surged to $627 million in the year ended March 31, 2007, from $568 million in 2006 and $427 million a year before. The profitability of the Japanese automaker is the exact opposite of Ford's plight. The Dearborn automaker, which holds Mazda's controlling stake, reported a $2.7 billion loss for 2007. That amounts to $204 million Mazda contribution to Ford's coffers. In 2006, the Japanese automaker contributed $168 million to the maker of Ford Explorers. But the most valuable contribution of Mazda is not money but auto architecture. The Japanese automaker plays a major role in Ford's research and development initiatives as well as product development endeavors. Mazda's sales were helped by new crossovers - the CX-7 and CX-9. The crossovers have introduced the Japanese brand into a booming auto segment. It is also worth noting that Ford's relationship with Mazda is not a one-way street. Mazda executives said that their success has only been possible because of the economies of scale its relationship with Ford yields. "We could never have done a car like the CX-9 without Ford," said Mazda Product Development Chief Robert Davis. "We wouldn't even have a V-6 engine." Most importantly, Ford let Mazda be Mazda again, analysts stressed. "Ford integrated them, but let them be what they had been - and not just another brand," said Michael Robinet, the vice president of global vehicle forecasts for CSM Worldwide in Northville. "They have rediscovered what their role in the market is, and that is building strong entries that offer aggressive design and affordable performance." Offering the right products is just a part of Mazda's success puzzle. "It's also been the confidence of the management in Japan in North America, their investment in the North American market," said James O'Sullivan, president and CEO of Mazda North America. "It's getting the dealership network aligned, too. It's been significant changes in the culture. It's the product lineup. And it's getting on the consideration list of consumers over an extended period of time." "We haven't had a relevant product for them to go into," O'Sullivan noted. "Now we have a full showroom." Nonetheless, O'Sullivan admitted that it will be a real challenge for the automaker to maintain its momentum through this year. "As we go forward this year, we're being very humble," he concluded. "We're pleased with the trends. But this year is going to be a very challenging year for everyone." About The Author: For more information about your parts needs like Ford Explorers visit your trusted online source. Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop. |
Tags: AUTO PARTS, FORD EXPLORER, FORD PARTS, FORD
