Mazda bows out in Flat Rock, Ford takes control.
08-24-2012, 02:16 PM
#1
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Mazda bows out in Flat Rock, Ford takes control.
Mazda bows out in Flat Rock | The Detroit News | detroitnews.com
The last Mazda is expected to roll off the assembly line in Flat Rock today as the Japanese automaker hands the keys to the plant back to its one-time parent, Ford Motor Co.
Known as AutoAlliance International, the plant has been run as a joint venture between Ford and Mazda since 1992, producing the Mazda6 sedan and the Ford Mustang muscle car.
Workers will mark the end of Mazda production with a small ceremony inside the plant today, but neither automaker is keen to draw attention to the event.
"The strategic cooperative relationship between Ford and Mazda has spanned nearly 30 years, and is one of the most successful partnerships in the automobile industry," said Ford spokesman Todd Nissen. "The alliance has been and continues to be an effective way to utilize the resources of both organizations and maximize joint synergies."
Mazda confirmed that production would end today, but offered no comment. Ford also confirmed the news and said it is moving forward with previously announced plans for a major expansion of the factory.
Ford will invest $550 million in the factory and add another 1,200 jobs. More than 1,700 workers are already employed at the plant, which will remain a 50-50 joint venture between the two automakers, at least for the time being.
"We continue to study various possibilities for the future of AAI, but we don't have anything to announce at this time," Nissen said.
The Flat Rock factory began life as a Ford casting plant in 1972, but the Dearborn automaker closed the plant in 1981.
Mazda purchased the factory in 1987 and transformed it into an automobile assembly plant. It produced the Mazda MX-6 and the Probe, a sport coupe based on the same platform that Mazda built for Ford.
In the early 1990s, Mazda was struggling. Ford, which had purchased a small stake in the Hiroshima-based company in 1979, began purchasing more Mazda shares in an effort to shore up its partner's finances. In 1992, Ford also purchased a 50 percent stake in its old Flat Rock factory, which was rechristened AutoAlliance International.
Under joint management, the plant produced the Mazda 626 sedan and Mercury Cougar. It was retooled to produce the Mazda6 in 2001 and Ford Mustang in 2004.
But Ford began unwinding its investment in Mazda when the financial crisis struck the auto industry in 2008. CEO Alan Mulally believed Ford's engineers were using Mazda as a crutch, and the company's shares were one of the few things Ford could still sell after mortgaging almost everything else to finance Mulally's restructuring plan.
Now, Ford plans to retool the Mazda line at Flat Rock to produce the new Ford Fusion sedan. That current version of Ford's flagship family car is produced in Mexico, but Mulally agreed to transfer production to the United States in exchange for concessions from the United Auto Workers in 2007 and 2009.
Mazda will shift production of the Mazda6 back to Japan. The automaker is opening a new factory in Salamanca, Mexico, to build the Mazda2 and Mazda3 subcompact and compact cars.
The last Mazda is expected to roll off the assembly line in Flat Rock today as the Japanese automaker hands the keys to the plant back to its one-time parent, Ford Motor Co.
Known as AutoAlliance International, the plant has been run as a joint venture between Ford and Mazda since 1992, producing the Mazda6 sedan and the Ford Mustang muscle car.
Workers will mark the end of Mazda production with a small ceremony inside the plant today, but neither automaker is keen to draw attention to the event.
"The strategic cooperative relationship between Ford and Mazda has spanned nearly 30 years, and is one of the most successful partnerships in the automobile industry," said Ford spokesman Todd Nissen. "The alliance has been and continues to be an effective way to utilize the resources of both organizations and maximize joint synergies."
Mazda confirmed that production would end today, but offered no comment. Ford also confirmed the news and said it is moving forward with previously announced plans for a major expansion of the factory.
Ford will invest $550 million in the factory and add another 1,200 jobs. More than 1,700 workers are already employed at the plant, which will remain a 50-50 joint venture between the two automakers, at least for the time being.
"We continue to study various possibilities for the future of AAI, but we don't have anything to announce at this time," Nissen said.
The Flat Rock factory began life as a Ford casting plant in 1972, but the Dearborn automaker closed the plant in 1981.
Mazda purchased the factory in 1987 and transformed it into an automobile assembly plant. It produced the Mazda MX-6 and the Probe, a sport coupe based on the same platform that Mazda built for Ford.
In the early 1990s, Mazda was struggling. Ford, which had purchased a small stake in the Hiroshima-based company in 1979, began purchasing more Mazda shares in an effort to shore up its partner's finances. In 1992, Ford also purchased a 50 percent stake in its old Flat Rock factory, which was rechristened AutoAlliance International.
Under joint management, the plant produced the Mazda 626 sedan and Mercury Cougar. It was retooled to produce the Mazda6 in 2001 and Ford Mustang in 2004.
But Ford began unwinding its investment in Mazda when the financial crisis struck the auto industry in 2008. CEO Alan Mulally believed Ford's engineers were using Mazda as a crutch, and the company's shares were one of the few things Ford could still sell after mortgaging almost everything else to finance Mulally's restructuring plan.
Now, Ford plans to retool the Mazda line at Flat Rock to produce the new Ford Fusion sedan. That current version of Ford's flagship family car is produced in Mexico, but Mulally agreed to transfer production to the United States in exchange for concessions from the United Auto Workers in 2007 and 2009.
Mazda will shift production of the Mazda6 back to Japan. The automaker is opening a new factory in Salamanca, Mexico, to build the Mazda2 and Mazda3 subcompact and compact cars.
08-24-2012, 02:24 PM
#2
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As I said over a year ago Mazda would walk away from Flat Rock...this US Alliance (manufacturing) has been a total disaster for them.
I wonder what Ford handed over for the keys???
.................................................. .................
I found this quote from Mulally interesting...
CEO Alan Mulally believed Ford's engineers were using Mazda as a crutch, and the company's shares were one of the few things Ford could still sell after mortgaging almost everything else to finance Mulally's restructuring plan.
I wonder what Ford handed over for the keys???
.................................................. .................
I found this quote from Mulally interesting...
CEO Alan Mulally believed Ford's engineers were using Mazda as a crutch, and the company's shares were one of the few things Ford could still sell after mortgaging almost everything else to finance Mulally's restructuring plan.
08-24-2012, 02:31 PM
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Ash, I agree. That same line caught my attention.
Makes me wonder what Mulally thought that Mazda was doing better that it's own engineers were just leeching off of. I think we can point out quite a few things, but it wonder what it was that HE saw. Ford clearly did the best of the big US 3 through the mess, and I think is generally producing better cars than GM, definitely better than Chrysler.
But still, using Mazda as a crutch seems like a stretch of words.
With the Yen problem, I don't really see a good reason that Mazda would give up a US production source that can bypass the exchange rate. Although I can see operation cost or quality issues pushing them that direction willingly anyway.
Makes me wonder what Mulally thought that Mazda was doing better that it's own engineers were just leeching off of. I think we can point out quite a few things, but it wonder what it was that HE saw. Ford clearly did the best of the big US 3 through the mess, and I think is generally producing better cars than GM, definitely better than Chrysler.
But still, using Mazda as a crutch seems like a stretch of words.
With the Yen problem, I don't really see a good reason that Mazda would give up a US production source that can bypass the exchange rate. Although I can see operation cost or quality issues pushing them that direction willingly anyway.
08-24-2012, 07:54 PM
#4
We do have to take into consideration that in the near future, Mazda will begin manufacturer their cars for the north American market at the Mexico plant. I believe that they will be manufacturer a small amount of their lower segments for the Brazilian market in Brazil as well.
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