Mazda Announces New ‘Mazda Advancement Plan’
Based on its long-term strategy and looking ten
years ahead, Mazda Motor Corporation has announced its new, four-year
mid-term plan, the Mazda Advancement Plan (MAP), for fiscal years 2007
Manufacturing innovation and accelerated
structural reforms will be key focus points during this period. Other
key areas include continuing to improve Mazda’s brand value and
increasing business efficiencies together with maintaining a consistent
and steady growth rate to position Mazda for a successful future.
Mazda President and CEO, Hisakazu
Imaki, said, “Under the Mazda Momentum plan, Mazda succeeded
in its efforts to build a solid foundation for consistent and
steady future growth. We understand the challenges ahead and are
addressing them. The next steps that Mazda needs to take for the
future are clear: deepen our synergies with Ford, improve
Mazda’s brand value and seek increased business efficiencies.
Our new mid-term plan, “Mazda Advancement
Plan”, has three numerical targets to be achieved by 2010: 1.6 million
global retail sales, an operating profit over 200 billion yen, and a
return on sales (ROS) ratio of six percent, in addition to a stable
payout of dividends.”
Synergies with the Ford Motor Company, attained
through deep cooperation in a number of areas and long considered a
‘win-win’ partnership, will continue to be a top priority for Mazda. In
addition, better brand value is to be achieved through desirable new
products along with quality and customer retention improvements to
further evolve Mazda’s enduring Zoom-Zoom brand ethos.
Mazda will also continue to initiate structural
reforms for improved business efficiencies, with particular emphasis on
key models, enhanced product competitiveness through integrated
development, manufacturing and purchasing activities, as well as
manufacturing innovation and cost optimization that will lead the
company into another era of future growth.
Overview of the New Mid-term Plan
1. FY2010 Targets •
Global retail volume of over 1.6 million
Operating profit of over 200 billion yen
Operating ROS of 6 percent
Stable payout of dividends
2. Action items (1) Brand-related
1. North America
Strengthen the product lineup by
introducing products that reflect the voice of the customer. Improve
customer satisfaction at all touchpoints.
Accelerate development of next-generation
dealerships that are consistent with Mazda’s brand strategy. Improve
sales productivity at exclusive dealers.
Strengthen marketing initiatives to deepen
relationships with Mazda’s younger customer base.
Work toward gaining 100 percent control of
distributors in the United States and Canada.
Strengthen product offerings in the
registered vehicle segment.
Move forward with establishing dealers in
the Tokyo metropolitan region in areas without dealer representation
at present. Grow profitability at dealers.
Shift to next-generation dealer outlets in
alignment with Mazda’s brand strategy.
Achieve outstanding satisfaction levels for
customers throughout the vehicle ownership experience.
Deliver advanced powertrains which will
improve customer satisfaction.
Sustain profitability in key mature markets
by improving sales productivity and forging ahead with dealer
openings in major urban areas.
Enter selected emerging markets.
Achieve a smooth launch of operations at
the Nanjing plant.
Develop the China dealer network to support
sales of 300,000 units per year.
Execute efficient product launches. 5.
ASEAN and Australia
Strengthen the ASEAN market(s) model lineup
and launch the CX-7 and CX-9 models in Australia.
Reinforce sales in growth markets by
focusing on urban areas.
Strengthen the ASEAN regional sales
company. Improve customer satisfaction levels in Australia.
(2) Products and Technology
1. Over the course of the next four
years, increase R&D investment by 30 percent as well as raise capital
investment expenditures by 50 percent compared to the last four years.
2. Enhance Mazda’s business structure through an evolution of
current key model lineups and by promoting a new business model. 3. With evolved Zoom-Zoom attributes, accelerate the development
of next-generation technology for further business growth after 2011.
(3) Production System
1. Increase production capacity in Japan
Expand production capacity in Japan to 996,000 units in FY2007 through
increasing production at the Hiroshima plant by 31,000 units and by
67,000 units at the Hofu plant.
Concurrently raise engine production capacity.
2. Overseas production facilities
Smoothly launch the Nanjing plant in China that will introduce an
evolved Mazda Manufacturing System.
Improve quality and cost competitiveness at production facilities in
Thailand and the U.S.
3. Future production capacity expansion policy
Promote manufacturing innovation to enable volume and model mix flexible
production which is competitive in quality and cost.
Build sales in all markets and develop overseas production capacity by
taking into account the balance in each market of sales demand and
Maintain domestic production capacity levels and transfer the technical
excellence developed in Japan to other regions.
(4) Human Resources Development
1. Promote the training of people who can drive
globally-oriented, ‘One Mazda’-style growth.
2. Develop people who energize each workplace.
3. Foster a dynamic work environment where employees can thrive.