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| The new Demio, a practical yet sporty compact sedan, helped Mazda become the top-selling Japanese company in Germany | | The all new Premacy, featuring a compact body, spacious interior and superb handling performance, was introduced into the European market in Summer 1999. |
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Supported by the strong economy and low-interest rates in major countries in the region, total European industry production rose over the previous year. Due to strong appreciation of the yen against major currencies, Mazda retail sales decreased 5.0% to approximately 236,000 units. However, Mazda achieved strong retail sales increases with the MPV, B-series pick-up trucks produced by AutoAlliance (Thailand) Company Limited (AAT), and the freshened Demio model.
On a calendar-year basis, Mazda's market share in the region (18 countries in EU and EFTA) decreased 0.1 percentage point to 1.4% in 1999. Conversely, Mazda maintained the top position among Japanese manufacturers in Germany for the first time in the past nine years and in Austria for the second consecutive year.
According to our internal customer satisfaction survey conducted by a third party, Mazda was ranked No. 1 in Austria for the second consecutive year, both in sales and after-sales service, as well as in Switzerland and the Czech Republic for the second consecutive year in after-sales service.
To strengthen Mazda's sales force in the southern Europe market, we established wholly-owned subsidiaries in Italy and Spain. With the start of operations in February 2000, Mazda Motor Italy and its 75 dealers and 172 service outlets aim to contribute to the overall sales increase in the region. Mazda Automobiles Espana SA began operations in March 2000.
Mazda Motor Europe GmbH (MME) undertook measures to enhance operations, including centralized control regarding models sold in the region. MME also focused on decreasing inventory, and establishing a communication platform with distributors and dealer outlets throughout the region.
In the coming year, Mazda will continue measures to enhance brand image in Europe. In addition, freshening of the 323, the 626, MX-5, and Demio models and the introduction of the new Tribute in Fall 2000 are expected to expand sales. Efforts targeting improved customer satisfaction include setting up a technical hotline and customer service centers and introducing new diagnostic equipment in these centers. |
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