Production of the Mazda2 Begins in Europe

Tokyo, Japan, Jan. 20, 2003 - (JCN Newswire) - Mazda has achieved a
major milestone in its history by manufacturing the first model
engineered by the company in Europe. The first of the Mazda2 has just
come off the assembly line at the Ford plant in Valencia.

Mazda has planned annual production of 40,000 units of this new compact
model, destined exclusively for European markets.

Mazda Motor Europe Vice-President for Sales, Dan Morris, stated: "Mazda2
is the second model to come from Mazda's resurgence strategy, which we
call the Millennium Plan. Like the first newcomer, the Mazda6, it is a
car that has been designed and developed specifically to meet the needs,
demands and expectations of European customers. As such, it will play a
key role in increasing our market share and brand awareness across
Europe."

To achieve this goal, a team of 70 engineers from Japan has been working
at the Valencia plant to ensure that the Mazda2 would meet with the
specific needs and demands of European customers.

Mr. Morris added: "Europe plays a very significant and increasing role
in Mazda's global aspirations. The launch of the Mazda6 has been a huge
success with the media and customers - and we have reacted fast to
market trends by including a latest generation diesel engine using
common rail technology. Now, Mazda has started to produce cars in Europe
through our partner, Ford."

By maximising synergies, both companies reap the benefit of reduced
costs and increased efficiency. For Ford, the incorporation of the
Mazda2 into the production schedule has meant that the Valencia plant
has become a completely flexible manufacturing facility, producing two
different cars on one common assembly line. For Mazda, the new Mazda2
model will help to further build the brand in Europe as well as
rejuvenating the customer base, delivering growth in the small car
segment and creating a European supplier base. Significantly, it also
ensures that Mazda is less at risk from fluctuations of currency
exchange rates involving the Yen.

The impetus of Mazda's focus on Europe is clear from the 2002 sales
results where, even under adverse market conditions, growth of 11% was
achieved. Mazda is now aiming for a volume of 210,000 units in Europe
during 2003 - a 15.4% increase over last year (182,000). Mazda2 is
expected to contribute 14% of the total volume.

The Mazda2 is an urban fun car, aimed mainly at young and active
customers. It is the second of the company's new generation products and
Mazda anticipates that it will support the highly-successful
introduction of the Mazda6 through its dynamic values, versatility,
functionality, performance and exceptional quality and craftsmanship.

The Mazda2 is constructed with an extremely rigid cell plus numerous
safety features that include dual-stage airbags for the driver and
front-seat passenger, as well as optional side and curtain airbags. All
production versions are equipped with Emergency Braking Assistance (EBA)
- Anti-lock Braking System (ABS) with Electronic Brake Force
Distribution (EBD) and Dynamic Stability Control (DSC) are optionally
available.

In most European markets the Mazda2 will be sold with four different
engine options: 1.25-litre, 1.4-litre and 1.6-litre petrol units that
deliver 75 hp, 80 hp and 100 hp, respectively, plus a 1.4-litre 68 hp
diesel engine using common rail technology.

The Mazda2 will arrive at Mazda dealers across Europe during
March/April. Individual market prices and equipment levels will be
announced late January/early February.


About Mazda Motor Corporation

Mazda Motor Corporation was established in 1920 and is one
of Japan's leading automobile manufacturers. With its headquarters
in Hiroshima, Mazda has two plants in Japan and manufacturing and
assembly operations in sixteen other countries. Mazda cars and trucks
are sold in more than one hundred and thirty countries. Ford Motor and
Mazda agreed to collaborate in 1979, Ford Motor Company started
investing in Mazda and increased its shareholding to 33.39% as of March
31, 1999. For further information, please visit the Mazda Motor
Corporation home page at: www.mazda.com/flash.html
<http://www.mazda.com/flash.html>