Global Efficiency 1998
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 Global Efficiency 1998

During fiscal 1998 and the first quarter of fiscal 1999, Mazda took a number of strategic steps to enhance international competitiveness by cutting out duplication within the management system, while enhancing the administrative capabilities of global operations.

   Effective October 1997, four subsidiaries in the United States were consolidated into Mazda North American Operations (MNAO), formally registered as Mazda Motor of America, Inc. The objective of this integration is to improve efficiency by streamlining the organizational base in the United States and Canada, improving internal communications and creating a new, centralized marketing and advertising strategy.

Capturing Hearts

Through concerted efforts with local staff, manufacturing operations for
Mazda's joint venture with Ford were successfully launched in Thailand.

   At the same time, the restructuring of Mazda's European operations continued to realize higher efficiency, together with a strengthening of key operations from a pan-European perspective. In June 1998, MME (LEV) GmbH was established as a subsidiary of Mazda Motor Europe (MME) S.A./N.V. in Belgium. The subsidiary, located in Leverkusen, Germany, will take over such major functions of MME as corporate planning, sales and marketing, public relations and customer service. Effective September 1998, MME and Mazda Motor Parts Center N.V., in Belgium, will merge to become Mazda Motor Logistics Europe N.V. to effectively manage vehicle, parts and components logistics.

   In Japan, a number of measures have been taken to increase the efficiency of dealerships. Following the consolidation of the Eunos channel with the Mazda and Mazda Anfini channels in 1996, the Autozam distribution channel was renamed Mazda Autozam, as of April 1998, and Mazda's three domestic channels all assumed the name of "Mazda". Mazda has introduced an Area Marketing Strategy intended to eliminate duplication among neighboring dealers by integrating designated management, administration and planning functions and sharing facilities. The strategy already covers 22 dealers in 10 prefectures and is being rapidly expanded.

   Asia furnishes an excellent example of the benefits arising from the strategic alliance with Ford. AutoAlliance (Thailand) Company Limited (AAT), a joint venture between Mazda and Ford and two local companies, began production of a compact pickup truck in May 1998. Operations will advance from one shift per day when demand dictates further expansion. It is anticipated that a few thousand vehicles will be produced in 1998, approximately 70,000 vehicles in 1999, with output in the early 21st century approaching the full capacity of 135,000 vehicles, including complete knock-down units. To offset strong currency movement, aggressive plans for the expansion of local procurement of parts and materials is in place. Production for export has been moved forward by up to three months and will commence toward the end of 1998. Exports will gradually be expanded to Latin America, Europe, Australia, New Zealand, the Middle East and other Asian countries in 1999.

   As AAT exemplifies, Mazda and Ford remain distinct entities, yet work together to enhance the global competitiveness of both companies. As a consequence of such teamwork, each company can offer broader lineups to meet diverse demand, capitalize on economies of scale, synchronize specified aspects of product development and share certain resources, including cutting-edge technologies.

 


Swift Response Global Efficiency Capturing Hearts