Demio Drives Mazda in Pursuit of Sales Target, Despite Drop

09/26/96

Kyodo has reported that Henry Wallace, president of Mazda Motor Corporation--Ford's Japanese affiliate--will continue to promote sport-utility vehicles, including its new Demio, says.

Mazda witnessed a drop in domestic sales in the first half of fiscal 1996 (April-September), but will maintain its net profit target of 20 billion yen for the year, based on strong demand for the Demio compact car. Orders for the Demio hit 14,500 vehicles in its first three weeks on the market, nearly tripling the company's original monthly sales goal.

Wallace said that Mazda wants to produce cars for the Asian market. Although the company is considering producing such cars at it's plant in Thailand, no concrete plans have been worked out yet. He also said that the company will promote purchases of parts from overseas suppliers.

Wallace said August meetings between Mazda and Ford covered a wide range of issues, including products and distribution, so that the companies could make the most of their cooperation. Mazda and Ford will map out plans for sharing auto platforms at the end of this year or early next year.

Paul Dever -- The Auto Channel