Image default
AutomotiveFeatured

Mazda makes cost-saving effort as inflation threatens to drive up investment spending

Japanese carmaker Mazda said on Tuesday it will keep investments in its electrification efforts in check by making use of partnerships and its existing manufacturing plants after inflation threatened to push up costs.

The carmaker said it expects to keep its investment at around 1.5-trillion yen (R181.29bn) for the period up to 2030 through its efforts, just as much as it had said in November 2022 it would be investing.

Without its cost-savings efforts, spending on investment for the period was likely to surge by a third compared to what the company expected initially to around 2-trillion yen (R241.67bn) due to inflation, Mazda said.

As part of its “lean asset” strategy it unveiled on Tuesday, Mazda planned to produce an electric vehicle that it will launch in 2027 on an existing production line on which it already makes cars powered by internal combustion engines.

By using an existing line instead of building a dedicated EV plant, the company would keep down the required investment amount by about 85% and cut the production lead time by around 80% for the vehicle.

Mazda already has a number of partnerships in various areas, such as with much bigger peer Toyota on the development of electronic architecture, and Denso, one of the world’s biggest automotive suppliers.

Mazda will need to further step up its collaboration with companies in the automotive industry if it wants to retain its international competitiveness as a Japanese carmaker, CEO Masahiro Moro told reporters.

Toyota owns a 5.1% stake in the carmaker.

Related posts

BorgWarner Supplies Polestar BEV SUVs with Electric Torque Vectoring and Disconnect Systems

Collen

FMCSA approves 25% fee increase for carriers, brokers

Collen

Data analysis software FAMOS 2024 launched by imc Test & Measurement

Collen

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy