Eugeosyncline said:
Point of daft curiosity:
How can an auto company offer a Nav system on their lowest end, North American compact car, and NOT on their flagship mid-sized sedan?
(smash) (hand)
Economics:
- The factory requires special stations/tooling to install the NAV (it's not as simple as simply dropping in a screen and DVD into the appropriate places). This tooling requires a certain amount of investment
- At this moment in time, NAV systems are widely used in Europe & Japan. Use of NAV systems in N. America is insignificant
- All world-wide Mazda3's are assembled in the same plant (Hofu plant 1). As such, there is enough world-wide demand that it's justified to install NAV tooling at this plant. This also applies to Hofu plant 2, which assembles Mazda6's for everywhere except for N. America and China
- Because use of NAV systems in N. America is insignificant (and almost non-existant in the Mazda6 class), there simply isn't enough volume for this option to justify the tooling costs at Flat Rock
I know what you're saying, so why can Honda, GM and others do it even for their N. American assembled vehicles. And the answer to that is:
- Flat Rock makes less cars (volume-wise) than virtually all the plants in N. America
- Honda and GM, etc. all have a premium brand whereas Mazda does not
- quite simply, Honda and GM, etc have much, much deeper wallets than Mazda (so they can invest in this tooling earlier than Mazda)
So because of the economics and assembly location, the Mazda3 can have NAV while the Mazda6 can't. But this is just for the moment. NAV use in N. America is growing and Flat Rock is going to reach maximum capacity by the end of this year after they add the third of 3 new products ('05 Mustang, Mazda6 Sport and Sport Wagon). So with these developments, installing NAV tooling will become more and more justifiable.