Mazda to Introduce New Car for 1997

12/23/96

Kyodo reports that Mazda Motor Corporation announced that it would initiate the production of a new type of car next spring at its Hofu factory in Yamaguchi Prefecture, Japan. Henry Wallace, president of Mazda and vice president of Ford Motor Co., told reporters that the car is meant partially to alleviate an excess of production capacity at the Hofu plant. Wallace, who became Mazda's president after Ford bought a controlling 33.4% equity stake of the Japanese carmaker, did not elaborate on the planned vehicle. A company spokesman later said the car would be a redesigned version of the Capella.

Wallace said that Mazda plans to sell 365,000 autos in Japan during 1997, up 7.8% from this year. The company also plans to export an additional 460,000 automobiles. Wallace said that Mazda and Ford will work out the details of a plan to use shared chassis for their motor vehicle production, a step that is expected to boost the companies' mutual production efficiency.

Wallace also dismissed speculation that Ford wants to expand its equity stake in Mazda.

Paul Dever -- The Auto Channel