Mazda announces Sales & Production figures for Nov 2008

The bad news continues to pour in from all over the world’s auto industry players. Honda has pulled out of F1 in anticipation of restricted cash flow. Suzuki and Subaru has both pulled out of WRC. Toyota has announced its first ever year of an operating loss in its 70 year history. Things continue to look bleak for the Big Three despite US senate finally approving a bailout package worth US$17.4b. That sales figures have dropped for everyone goes without saying, and hence it was no surprise that Mazda Motor Corp announced drops in sales and production figures for Nov 2008.

While the total yearly figures have increased, in the context of the current auto industry crisis, one needs to compare between corresponding periods of 2007 and 2008. While there was a 9.1% increase in overall production figures for the period of Jan-Nov 2008 compared to Jan-Nov 2007, comparing Nov 2007 against Nov 2008 paints a bleaker picture – a massive 17.9% decrease.

Preventing an even bigger slide is the increased production of the highly acclaimed and capable Mazda6, accounting for 13,597 of the total 23,297 vehicles rolling out of Mazda’s overseas plants. Adding on to the 10,781 Mazda Atenzas (JDM Mazda6) rolling out from Japan, the 6 accounted for 24% of Mazda’s total global production. Year-on-year (Nov ’07 vs Nov ’08) the 6’s production actually increased by 3.8% in Japan and an impressive 13.3% overseas.

Mazda6 accounts for 24% of Mazda’s worldwide production

Note: As of January 2007, overseas production figures are based on Mazda brand units coming off the production line (does not include CKD units).

Also seeing a production increase was the Mazda2, which saw an 8.9% year-on-year increase for its JDM production to 18,374 units for Nov ’08. However, this production increase did not translate to a sales increase, as only 3,387 of those cars found their way into Japanese homes – a massive 34.4% year-on-year decrease, corresponding to a 28% decrease in total JDM sales.

Increase in production for Mazda2 did not translate to increase in sales.

The export figures are a little more encouraging, but not by much, with total year-on-year export registering a 14.9% drop to 62,535 cars. It is here we learn that the Mazda2’s increase in demand was fuelled primarily by overseas demand, with a 1.4% increase in shipment to 11,656 units. Unfortunately, with the other models not performing as strongly, notably the 3 which registered a 5.8% year-on-year drop, overall exports were hit.

3 didn’t perform so well, bad economy, or are people just waiting for the new model?

In the current economic climate, a drop in sales is definitely to be expected, and Mazda has no need to ring the alarm bells yet, though they would do well to brace for what will be a very rough impact as 2009 unfolds. Perhaps it is in anticipation of that that they have announced a shake-up of their management which would take effect on 1 Jan 2009.

The goals of the change are to improve business efficiency and maintain Mazda’s strategic relationship with Ford. The changes will support collaborative projects, joint programs, and other business concerned with product and technology development and basic technologies. To meet that goal, an R&D Liaison Office has been established to enhance communication functions between Mazda R&D and Ford PD. These functions have been transferred from the R&D Technical Administration Division and the Program Management Division.

The changes saw the removal of three key personnel: one executive and two GM level officers, and the remaining ones taking up increased responsibility. Quite a few people are actually being promoted to being full General Managers. There seems to be a lot of attention being paid to China, as no less than four of the listed changes directly involve Mazda’s China operations.

See list below for full details.

Executive officers

General managers and above

With that, I hereby conclude this post wishing all AW readers a Merry Christmas and Happy New Year 2009.