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In September 1999, the new MPV was introduced in North America. MPV received wide customer acclaim and contributed to greater sales in the region.The new Millenia will be introduced into the North American market in Fall 2000. Equipped with a sportier exterior, the new Millenia delivers Mazda's Dynamic DNA and provides customers with a new level of driving pleasure.
In the United States, the economy achieved record growth rates and private consumption remained strong. Total industry sales during the year increased 7.2% to 17.4 million units. Mazda retail sales rose 4.9% to 246,000 units, attributable to strong sales of Protegé and MPV, launched in September 1999. Despite an increase in sales, Mazda was unable to exceed the average increase rate of the industry due, in part, to a lack of participation in the SUV market, the most rapidly expanding segment in the United States. Mazda will address the issue in late 2000 with the introduction of the Tribute SUV.

Other models continued to be well received by both our customers and the industry. In the U.S. Consumer Report, Protegé and MX-5 Miata were selected as the “top picks” for “small sedans” and “driving fun,” respectively. MX-5 Miata was also selected as the “Best Inexpensive Sports Car” in Automobile Magazine's "All-Star Awards." In U.S. Car and Driver magazine, the Protegé came out on top in a 13-car comparison test.

The economy also expanded in Canada, where total industry sales reached 1.5 million units, an 8.1% increase over the previous year, to nearly 51,000 units. This expansion was led by the contributions of the new MPV, the continued popularity of Protegé and Millenia.

In March 2000, Mazda North American Operations (MNAO) obtained distribution rights in the Midwest and surrounding areas in the Great Lakes region, resulting in direct control over the sales network throughout the United States. This measure is expected to improve sales and marketing operations in these regions.

In June 1999, AutoAlliance International Inc. (AAI), a joint manufacturing venture between Mazda and Ford, achieved cumulative production totaling 2 million vehicles since production began in September 1987.

Mazda launched the “Zoom, Zoom” commercial campaign in June 2000, serving as effective means to convey a new image of Mazda's products and enhance the brand identity throughout the United States.

In the coming year, MNAO will implement various measures in conjunction with the Mazda brand strategy, targeting improvements in brand image, customer satisfaction and buyer loyalty. The U.S. subsidiary will also continue to revitalize its dealerships by streamlining the organization and increasing the number of exclusive Mazda dealerships in the region.

For North America as a whole, expansion of sales of the MPV along with the introduction of Tribute and freshened models, such as Millenia and the MX-5 Miata, are expected to contribute to sales growth.
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