One of the factors that contribute to Mazda’s financial struggle is the continued strength of the Yen. Mazda exports a great amount of its cars from Japan than any other automaker. This result in slim profit margins in its sales results, all due to the country’s strong currency. Another contributed factor is the weak selling models in markets like the United States. Mazda’s imported models such as the Mazda 6 and the Tribute/CX-7 had poor sales in America.
But there is some hope for the Japanese automaker to return to financial profitability. Mazda is building a plant in Mexico to counter the strength of the Yen. The launch of their new CX-5 crossover and the usage of its fuel efficient SkyActiv technology on its models might increase its sales volumes and thus, increase the company’s net profitability.
Mazda has battled alone after former partner; Ford sold most of their shares in the company several years ago. If Mazda can find an automotive partner, the new partner could help Mazda to bear the expenses on some of their expenditures.
Photo credit: Net Car Show