Mazda Hopes New Station Wagon Will Attract Young Drivers

08/28/96

Reuters has reported that Mazda launched a new station wagon with a comparatively low price tag into the Japanese market on Monday. The launch comes as part of the company's attempt to drag itself out of a slump, and the vehicle's low price is supposed to attract young customers away from the company's bigger rivals.

Mazda has geared its new Demio toward young families. The car resembles a mini-van and is powered by a 1.3 or 1.5-litre engine. It was launched at a celebration attended by Mazda's new president, Henry Wallace, the first foreigner to head a major Japanese company.

"The Demio is flexible, fun to drive, easy to drive in the city but roomy, and great value," Wallace told Japanese reporters at a press preview. Wallace's celebrity status in Japan can be measured by Mazda's decision to feature him in full-page ads in Japanese newspapers last week.

Wallace said the new car will start at 798,000 yen ($7,388) for the 1.3-litre model with a five-speed manual gearbox and no air-conditioner. The Demio comes equipped with driver's side air bag and anti-lock brake system. Mazda has set a sales target of 4,000 a month for the new vehicle.

Wallace said one of Mazda's top priorities is to provide a higher degree of customer satisfaction. He said the Demio will do that: "The Demio, which is introduced today, is the very first example of the new Mazda corporate direction."

Mazda will start exporting the Demio to Australia and other Asian countries at a rate of 500 per month, starting in October. Wallace said the company will not introduce the model in the United States because it is not a compact-vehicle market.

Nikko Research analyst Tsunemi Tachibana said: "Sales of the Demio are likely to be tough because several makers are expected to launch similar models. The weak point of the Demio is that it has no four-wheel-drive version."

Paul Dever -- The Auto Channel