For better or for worse, depending on which side of the line you are standing on, Mazda has confirmed rumors that it will stop building the Mazda6 at the AutoAlliance International (AAI) plant in Michigan, which it runs jointly with Ford, after the mid-size sedan's current cycle ends.

The company said the Mazda6's replacement for the North American market will be produced at its Hofu Plant in Yamaguchi prefecture, Japan, adding that the decision was driven by the firm’s “ongoing efforts to increase global manufacturing efficiencies”.

“Our intention is to transfer production of our next CD-car for North America from AAI and consolidate it at Hofu in order to improve production and investment efficiencies and optimize our business," said Takashi Yamanouchi, President and CEO of Mazda Motor Co.

Mazda established the AAI plant in 1985 but it became a 50-50 joint venture between the Japanese automaker and Ford Motor Company in 1992, when the name was changed to AutoAlliance International, Inc. Over the years, the facility has churned out more than 1.7 million Mazda vehicles, including the MX-6, 626 and from 2002, the Mazda6 of which over 500,000 units have been built. The factory also produces the Ford Mustang.

The Japanese automaker said it will continue to work with its former owner Ford, but didn’t go into any specific details.

“We are committed to working with Ford, our joint venture partner in AAI, to identify potential future opportunities for the plant,” said Yamanouchi. “Mazda and Ford have enjoyed a close relationship for over 30 years. We have collaborated on projects where there are mutual benefits, and both companies remain committed to continuing this strategic partnership."

Ford has not yet commented on Mazda’s decision to abandon the joint venture factory in Michigan.

These are old shots of Japan taken mostly in 1886. These historical photos are magnificent. Very interesting to be able to learn a little about Japan's history. Old photos show us their life, traditions, simply how they used to live. But today there is a lot of weird photos from Japan. Enjoy!

Source: flickr

Mazda announced that its Mazda3 compact car (known as the Axela in Japan) has reached a new milestone with the production of 3 million units, seven years and ten months after the launch of the first-generation model. The fastest-selling model in the company's current lineup of passenger cars is produced in three locations (Japan's Hofu Plant in Yamaguchi, China's CFMA plant in Nanjing and Thailand's AutoAlliance plant).The compact model is sold in approximately 90 countries and regions across the world.

The three-millionth Mazda3 was produced at the Hofu Plant in the form of a five-door hatchback for the Japanese market fitted with Mazda's MZR-2.0L engine and the i-stop system.

"The Mazda3 embodies all three elements of Mazda's DNA: distinctive design, exceptional functionality, and responsive handling and driving performance. Its sustained global success has seen it grow into Mazda's mainstay model, and it now comprises a third of all Mazda vehicle sales," said Hirotaka Kanazawa, Mazda's senior managing executive officer in charge of R&D.

"As we celebrate reaching three million units, I would like to thank the millions of Mazda3 customers for their support and reaffirm Mazda's commitment to delivering outstanding environmental and safety performance balanced with driving pleasure that goes beyond your expectations," the executive added.

It took eleven years for Lexus to earn the title of top dog of the U.S. luxury car market, and roughly the same amount of time for it to lose it. As a result of parent company Toyota’s accelerator pedal recall saga and the fifty percent drop in production capacity caused by the Tōhoku earthquake, old guard automakers BMW and Mercedes-Benz have left the Japanese upstart gasping for air in third place.

According to automotive forecaster IHS, Mercedes-Benz will most probably sell 254,100 cars and SUVs in the States topping BMW’s estimated deliveries of 250,400 units. Lexus is projected to drop to third place with 192,900 sales.

Eric Noble, President of automotive consulting firm The Car Lab, recently told Bloomberg news: “The house was on fire at Lexus before the earthquake hit. If the current situation wakes them up to that, then some good may come from it.”

Though it has sunk a lot of money into the LFA supercar and CT 200h hybrid batch, Lexus’ supposed mainstay models – the IS, GS and LS ranges of sedans – have all been stagnating. Its rivals meanwhile have been ramping up U.S. production, developing new or refreshing older models and sinking hundreds of millions in improving its stateside manufacturing facilities.

Bill Visnic, an analyst at Edmunds says: “Lexus is in a sort of lull in their product cadence. [The Lexus GS] is aging and doesn’t hold a candle to what BMW and Mercedes are doing.”

Though Lexus has long held a strategic position in the U.S. market, its sales outside North America have been lacking. As was the case with Volvo and safety, reliability is now pretty much a given and excellence in customer service has become integral to the vast majority of the world’s luxury automakers. With Lexus’ current woes, the result is, as you’d expect.

As Alexander Edwards, President of consumer research company Strategic Vision says: “For people who were sitting on the fence about Lexus, we saw them remove the brand from the shopping list.”

Take Audi for instance, a long-time market leader in both Europe and China. The brand’s recently revamped A6 model is doing well overseas, and the German automaker hopes it’ll have similar success stateside. Alexander Edwards again:

“The most interesting change hasn’t been with those three, but with Audi. Audi has seen very strong movement forward, capturing some aspirational [sic] interest among Gen-Y buyers, the younger consumer group that everyone wants to attract.”

The battle lines have been drawn, and three titans are ready to fight for the number one spot in 2012. Unfortunately, it looks as if Lexus will not be one of them.

By Tristan Hankins

Source: Bloomberg News