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.

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.

The new generation of powertrains developed by Mazda under the Skyactiv name will soon have its another member out on the road, as the company announced that the “Skyactiv-G 1.3” direct-injection gasoline engine will debut on the facelifted Demio (known as the Mazda2 in international markets) in Japan this summer. Mazda will unveil the new engine at Tokyo's Automotive Engineering Exposition on May 18-20.

The 1.3-liter engine features a record high compression ratio of 14.0:1 and delivers 84 horsepower at 5,400 rpm and 112 Nm (82.6 lb-ft) of peak torque at 4,000 rpm. In the Demio, it returns an impressive average fuel consumption of 3.33 lt/100 km (70.6 mpg), according to Japanese norms.

The low fuel consumption is also due to Mazda's new i-stop system and the continuously variable transmission (CVT), as the improved start/stop system alone contributes to an 8 percent drop in fuel consumption.

The Japanese automaker said it applied for over 130 patents in relation to this engine only, as it features many new technologies, such as multi-hole injectors that enable precise fuel injection control, compact combustion chambers with a longer stroke for better efficiency, lightweight and highly rigid aluminum alloy engine block and a dual sequential valve timing system.

Mazda aims to increase its global fleet fuel efficiency by 30 percent by 2015 via its Skyactiv technologies.

Mazda and Subaru may soon be forced to axe two of their models in the US market, the Mazda6 mid-size vehicle and the Subaru Tribeca SUV, due to low volumes that undermine the efficiency of the U.S. plants that they are built in, according to a newspaper report from Japan’s business daily Nikkan Kogyo. It should be noted though that spokesmen for both companies declined to comment on the report.

Nikkan Kogyo wrote that Mazda is planning to discontinue production of the Mazda6 at the Flat Rock, Michigan plant, which it operates as a joint venture together with Ford Motor Co., as sales missed expectations. When Mazda introduce the latest generation of the mid-size model in 2008, the company expected an annual production of around 100,000 units, but last year, the plant churned out just 45,168 Mazda6s. In April, Mazda6 posted an increase of 7.8 percent but sales reached just 2,734 vehicles.

But being that the mid size segment is an important category, the report says that Mazda is mulling other options including the introduction of another model or build a similar vehicle at a lower cost factory in Mexico.

As for the Tribeca, which has been in production since 2005 at Subaru’s Indiana plant, the Japanese newspaper said the company has stopped the development of a new version and plans to use the increased capacity to build the better selling Outback and Legacy. This year through April, Subaru sold just 910 examples of the SUV model.

Source Nikkan Kogyo via Autonews [Sub. Req.]