NewsDownstreamJapan's Mazda Motor to expand aluminum engine output capacity 25% by end-2014
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Japan's Mazda Motor to expand aluminum engine output capacity 25% by end-2014

Edited by : AL CIRCLE
2 min read
Japanese automaker Mazda Motor plans to increase production capacity of aluminum passenger vehicle engine Skyactiv at its Hiroshima plant by 25% to 1 million units/year by the end of 2014, the company said Tuesday.

The current nameplate capacity stands at 800,000 vehicles/year.

Mazda started producing Skyactiv, a fuel-efficient aluminum alloy engine for gasoline vehicles in 2011. By the April 2015-March 2016 period, 80% of Mazda cars will be mounted with the Skyactiv engine, the company said

Mazda targets global sales of 1.7 million vehicles in April 2015-March 2016.

Mazda has produced 1.1 million passenger vehicles globally in 2012.

Sources from Japanese diecasters, which supply aluminum components to automakers, said the news suggests that Mazda continues to position Japan as a major production base.

"All Japanese automakers are seeking to increase output overseas while decrease at home, so this is a good news for the diecasting industry," said one diecaster source.

But sources added that Mazda's engine production has stayed below its nameplate capacity for some time.

"Diecasters should be able to cope with their current capacities as their run rates fell affected by less-than-expected orders from Mazda," the source said. "But they may need to expand assembly and other lines in the final stages of production."

A Mazda spokesman declined to comment on engine production levels.

Mazda's Skyactiv engines include 1.3-, 2.0- and 2.5-liter gasoline engines and a 2.2-liter diesel engine. Most of the engines produced at the Hiroshima plant are 1.3-liter engines mounted on a compact car model Demio, sources said.

Sources also said that the Mazda engine plant might suffer from low run rates after the expansion if Japan is hit by stronger yen, which reduces Japanese car exports.

Separately, Mazda said the Skyactiv engine would be produced at overseas plants. Mazda's Changan plant in China started Skyactiv engine production in June, and a plant in Mexico will start in the first quarter of 2014.

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