Mazda's New President Details Plans

TOKYO AP reported monday that Mazda Motor Corp.'s new president vowed to press ahead with his predecessor's recovery strategy, which has returned the Japanese automaker to profitability.

Lewis Booth said he would focus on strengthening Mazda's brand, the cornerstone of the plan set forth by Mark Fields, the automaker's president since December 1999. Booth was named to the position last Friday.

"I don't come with a mandate of change. I come with a mandate to implement the Millennium Plan," said Booth at a news conference. "I don't believe the plans are going to change."

He has served as president of Ford Asia Pacific, Africa and Technical Staffs since 2000 and as head of Ford's South African business in the 1990s.

Ford holds a 33.4 percent stake in Mazda, Japan's No. 4 carmaker, and Booth will be the fourth Ford executive to head Mazda.

The move will take effect after a shareholders' meeting in June.

The promise of continuity at Mazda contrasts with recent changes at the money-losing Ford, which has begun a $9 billion turnaround plan.

Jacques Nasser was ousted as chief executive at Ford in October and Bill Ford Jr. has since taken over the Dearborn, Mich.-based automaker.

As part of that larger management shake-up, Fields will head Ford's luxury brands, the Premier Automotive Group, made up of Aston Martin, Jaguar, Land Rover and Volvo.

As with many other Japanese firms, Mazda has been saddled with huge pension and other retirement costs.

A lack of new models has also hurt Mazda's sales at a time when the local market has been dominated by the top two automakers, Toyota Motor Corp. and Honda Motor Co.

For the fiscal year ended in March 2001, Mazda posted a loss of 155 billion yen. But Mazda's fortunes have improved lately.

Earlier this month Mazda raised its earnings forecast to a net profit of $65 million, up from the previous prediction of $10 million, largely thanks to cost-reduction and a favorable exchange rate.

Fields acknowledged much remains to be done to complete Mazda's recovery.

"The patient is on the mend now. And it will continue to get stronger and stronger," he said.