Will Mazda survive?

[x10dude]

Just read an article that discussed the survival of Mazda. What does everyone here think?

http://www.detnews.com/article/20090521/AUTO01/905210359/1148/AUTO01/Key+to+survival+for+Mazda+may+be+the+city+it+calls+home

 

[mazdadude]

That was an interesting article, thank you for posting it.

I think that Mazda's smaller size and flexibility enable it to be more nimble, and quicker to respond as market demands change.

They used the "zoom-zoom" campaign very intelligently, and effectively to bring emotion of motion, and better brand recognition to the Mazda nameplate. In addition, they released a bunch of stirring and popular concept cars which hinted at Mazda's future design direction. Not to mention the major improvements in fit/finish and reliability.

One area I feel they should expand on, is the "Web Tune" concept that they have had in Japan for around 7 years now. I would really like to see them bring this feature to North America. This is a terrific web interface that allows customers to build their own Mazda vehicle online, and have it built to order.

Mazda will never be as big as Honda, or Toyota, or even Nissan for that matter, nor do they want to be (and nothing could make me happier). Niche vehicles will continue to be Mazda's forte, but they will still need help from the main bread and butter cars like the Mazda2, Mazda3, and Mazda6.

 

[Rockin03mp5]

from what i have read, mazda does not have 120 days of inventory on dealer lots. quite a few are bought while still on the boat over here. i also hear their plants make a wide variety of vehicles, and can change over quickly.

 

[DKaz]

I truly believe Mazda will head out of this recession stronger than ever much like Subaru because of their resistance to become mainstream. Toyota is suffering big time right now mainly because of the huge drop in sales on their huge SUVs and Tundra truck.

I think the main concern is that they do not have the huge cash reserves that the other companies have especially since Ford sold their stakes but from what I heard from the dealers, their sales have stayed strong from last year and they're standing on their heads trying to keep up, even without the incentives. As long as they continue to sell, they'll be fine. They have less overhead than the bigger companies and as others have said, they are better able to respond to any shifts in demand almost right away.

 

[x10dude]

The positives to Mazda is that it is small and focused (they've kept the same slogan for over a decade) and almost all of their vehicles are decent. They also have been through hard times before so they know a bit or two about survival.

But the problem is that they lost the backing of Ford so financing debt might be a big problem. (they also lost the development and research dollars that Ford provided before). Subaru has the backing of Toyota and Mitsubishi has the backing of the whole Mitsubishi company (which is not just a car company). Mazda right now is by itself.

Besides the Mazda5, sales have plummeted across the board. The Mazda2 is been selling well but it's not available in the US.
The bottom line is that sales definitely have to increase across the board.

 

[Mazda5wannabe]

I would like to think Mazda, having survived being nuked, could weather the financial problems of today. Of course, speculators have taken over the market and great products can be easily sunk by button pushing MBAs with over-sized egos and too much greed. Only time will tell.

It's going to be a rough ride for us all, until we figure out a way to kill off most of the lawyers and MBAs and all of the stock speculators and get back to honest businesses that aren't built on super-sized hype. Apologies to any lawyers or MBAs on the forum!

 

[antlind]

I would like to think Mazda, having survived being nuked, could weather the financial problems of today. Of course, speculators have taken over the market and great products can be easily sunk by button pushing MBAs with over-sized egos and too much greed. Only time will tell.

It's going to be a rough ride for us all, until we figure out a way to kill off most of the lawyers and MBAs and all of the stock speculators and get back to honest businesses that aren't built on super-sized hype. Apologies to any lawyers or MBAs on the forum!

Look on the bright side.....if Mazda fails there'll be lots of Mazda3/5/6/CX-7/CX-9 etc going cheap.....(cryhard)

 

[coolmazda5]

Mazda will never be as big as Honda, or Toyota, or even Nissan for that matter, nor do they want to be (and nothing could make me happier). Niche vehicles will continue to be Mazda's forte, but they will still need help from the main bread and butter cars like the Mazda2, Mazda3, and Mazda6.

That is pretty much it, more niche, forget the bland mass production side. It also has to do with the country where they are producing and selling. Japan doing bad, maybe US and Canada as well, but still growing in places like China, UK and Mexico.

Bland mass production is kind of where I see Hyundai and KIA today, like Honda, Toyota and even Mazda years ago as the article highlights. Growing fast, trying to make every market segment happy, they can and will grow but, if not careful, will bloat soullessly

 

[x10dude]

The other factor is weakness of the US dollar which makes all of Mazda's cars more expensive to sell in the US.

 

[Rocket]

The real issue is dealerships. When Ford controlled them it was easy to force the local Ford dealership to open a Mazda store. Now that Ford is gone, many of the dealerships will close. Without the distribution and service, the sales will evaporate. That is the big problem. So expect a "strategic alliance", which is another word for distribution.

 

[Rockin03mp5]

i dont have the article, but ford and mazda are still working together, and ford still has a stake in mazda. they just sold some of their shares to get some cash.

 

[switek]

I hope Mazda survives on it's own. I know they have/had a relationship with Ford but in my town a Chevy dealer also sells Mazda. Good thing too since the local Ford dealerships are all retards.

 

[x10dude]

i dont have the article, but ford and mazda are still working together, and ford still has a stake in mazda. they just sold some of their shares to get some cash.

They used to own 33.4% stake in Mazda (controlling stake) but sold 20% of it to raise cash. They still own 13% of Mazda but because of Detroits woes, it no longer can bankroll Mazda's own debt. The problem that Mazda is going to face in the near future is credit.

 

[jujube]

I would like to think Mazda, having survived being nuked, could weather the financial problems of today. Of course, speculators have taken over the market and great products can be easily sunk by button pushing MBAs with over-sized egos and too much greed. Only time will tell.

It's going to be a rough ride for us all, until we figure out a way to kill off most of the lawyers and MBAs and all of the stock speculators and get back to honest businesses that aren't built on super-sized hype. Apologies to any lawyers or MBAs on the forum!

Whew! As a stock speculator, I'm glad I get to survive the 'carnage' (tee-hee-hee, i made a car forum pun!)

 

[Mazda5wannabe]

Whew! As a stock speculator, I'm glad I get to survive the 'carnage' (tee-hee-hee, i made a car forum pun!)

Triangulating on your position NOW. Do not be concerned about any helicopters you may hear. They are from the government and are there to 'help' you.

I'm glad that you realize my post was made with tongue firmly planted in cheek. I don't actually want any lawyers, MBAs or speculators to die in a genocidal frenzy.

Well, maybe a couple. I have a list! (lol2)

 

[Antonio DiMarco]

+1

That was an interesting article, thank you for posting it.

I think that Mazda's smaller size and flexibility enable it to be more nimble, and quicker to respond as market demands change.

They used the "zoom-zoom" campaign very intelligently, and effectively to bring emotion of motion, and better brand recognition to the Mazda nameplate. In addition, they released a bunch of stirring and popular concept cars which hinted at Mazda's future design direction. Not to mention the major improvements in fit/finish and reliability.

One area I feel they should expand on, is the "Web Tune" concept that they have had in Japan for around 7 years now. I would really like to see them bring this feature to North America. This is a terrific web interface that allows customers to build their own Mazda vehicle online, and have it built to order.

Mazda will never be as big as Honda, or Toyota, or even Nissan for that matter, nor do they want to be (and nothing could make me happier). Niche vehicles will continue to be Mazda's forte, but they will still need help from the main bread and butter cars like the Mazda2, Mazda3, and Mazda6.

As long as Mazda stays lean and mean and continues to build the cars they're building they'll be fine. Unlike GM, Toyota or Honda they don't require a committee to drive direction. This lack of red tape allows them to move quickly.

As someone else said they will be in a better position than most becasue they aren't "fat". Based on what I see, they have very agile development processes and don't have a million factories, rather they have a few factories that can switch production very quickly.

 

[coolmazda5]

As someone else said they will be in a better position than most becasue they aren't "fat". Based on what I see, they have very agile development processes and don't have a million factories, rather they have a few factories that can switch production very quickly.

Here is from O'Sullivan, MNAO CEO:

The great thing about Mazda is that we build a variety of products at one plant. With a flexible plant, we have CX-9, Mazda6, RX-8, and Miata on one line, which lets us keep our costs down. When the market comes back, people's lifestyles change.

The whole interview is here:
http://www.mazdas247.com/forum/showthread.php?t=123742297

 

[YOUNGMP3]

If Mazda goes bankrupt I will cry.

 

[x10dude]

If Mazda goes bankrupt I will cry.

I don't think they'll go bankrupt. If anything they might get bought up by another car company.

 

[bulwnkl]

Guys, "small and lean" are things the execs say to quell public (and employee) fears. Mazda is 'small and lean' because their mainstream cars simply weren't being bought by the public. They'd have already gone broke at least once without Ford.

Niche vehicles don't cost so little as Mazdas cost. Niche vehicles cost near or over 6 figures. To have niche vehicles costs so little as Mazdas, requires a large and reliable stream of money coming from somewhere/something else. Without that, the niche vehicles disappear along with the company that produces them. Or, if they're really that popular, they just multiply times 10 in price.

I hope that Mazda can stay afloat. I really like our 5, and I really like some of Mazda's other vehicles. OTOH, they are similar to Subaru in precisely zero ways. One of the primary reasons that Subaru is doing so well in these times is that they went mainstream with the Imprezza last year (and more mainstream with their entire line, at least from a styling and driving dynamics perspective). Another reason is that they're an excellent, smaller, more fuel efficient alternative to the full-size SUVs that no one on the planet can give away right now.