Mazda May Boost Output Capacity For Atenza To Meet Demand

TOKYO -Dow Jones reported that Mazda Motor Corp. may boost its production capacity for the "Atenza" sports sedan to meet stronger-than-expected demand for the product launched in May, the company's top executive said Wednesday.

the company is mulling ways to boost its capacity for the Atenza at its plant in western Japan.

The carmaker, in which Ford Motor Co. holds a 33.3% stake, initially planned a monthly output of 10,000 units for the Atenza but has increased output to 14,500 units a month through measures such as overtime, he said.

Mazda set its average monthly sales target for the new Demio through its life cycle at 7,000 units in Japan. The company expects Japan's compact car demand to total 63,000 units to 64,000 units this year, up from around 60,000 units last year, a Mazda executive in charge of domestic sales said.

Mazda will launch the Demio in Australia and New Zealand later this year though exports from Japan, while it will ship the new product to other Asian countries later, Booth said. From the first quarter of 2003, Mazda will also start production of the compact car at a Mazda-Ford joint venture plant in Valencia, Spain for sales in Europe, the Mazda president said.

Booth is confident the Demio and the Atenza will help turnaround the company's once-sluggish sales, he said. Mazda's sales volume fell sharply last year as the company didn't release any new models.

"My only concern is whether we can deliver products early enough to satisfy our customers," Booth said.

As for the outlook for domestic car demand, he said "I don't see any sign of recovery in the domestic market."

Any recovery in the Japanese economy will be led by exports, he said. He added a sustainable economic recovery requires growth in both domestic demand and exports.