Japan's Mazda Begins First European Model Output In Spain

TOKYO January 20, 2003; Dow Jones reports that Japanese automaker Mazda Motor Corp. said today it has begun production of "the Mazda2", the first model the company engineered for the European markets, in Valencia, Spain.

Until recently, the company's cars sold in Europe were made by its partner Ford Motor Co. on a basis of original-manufacturing-equipment agreement. The U.S. automaker is Mazda's leading shareholder with a 33.3% stake.

Mazda plans annual production of 40,000 units of the new compact model destined exclusively for the European markets at Ford's Valencia plant.

The Mazda2 is aimed at mainly young and active customers.

In most European markets, the Mazda2 will be sold with four different engine options: 1.25-liter, 1.4-liter and 1.6-liter gasoline engines and a 1.4-liter diesel engine.

The model will arrive at the company's dealers across Europe during March or April. Individual market prices and equipment levels will be announced in late January or early February, Mazda said.