Mazda is taking on fellow manufacturers such as Toyota and Honda as it looks to increase profits.
Japanese automotive manufacturer, Mazda, continues to experience a very strong demand for its latest SKYACTIV engine models. This has prompted the company to increase production by 25 per cent.
This expansion is expected to be completed at the end of next year and will accommodate an increase in production from 800,000 to 1 million engines on annual basis. Mazda has also stated its intention to install a new engine machining line that is purported to be highly versatile in application.
Profit at Mazda
The expansion set to occupy Mazda over the coming months and years lies in contrast to fellow Japanese car maker, Toyota. The car company has said that it has no plans to expand beyond its current operations.
Shares in every single one of Japan’s car manufacturers have risen in the wake of economic optimism sparked by the policies of Prime Minister, Shinzo Abe.
Yet share prices in Mazda have increased as much as 90 per cent. This is compared to Honda share prices, which have increased by 20 per cent and Toyota, which has experienced an increase of 35 per cent.
Mazda has made a worldwide net profit of 34.3 billion yen in the final quarter of the last financial year. This is in contrast to a 107.7 billion yen loss it suffered in the previous year.
Where does the future lie for Mazda?
Expansion is clearly a key aspect of Mazda’s future. Wishing to capitalise on its recent upturn in fortunes, the company’s goal is to increase sales to 1.7 million vehicles in the next three years and the SKYACTIV range is central to this process.
With such a dramatic increase in engine production, and the economy still hanging on a Rather fragile line for many, second hand car websites such as whatcar.com and Motors.co.uk can look forward to a prosperous 2014 as they will look to increase revenue streams with extra second hand cars becoming available on the market, and potentially providing a more viable option for those still cautious and feeling the after effects of the economic squeeze.
