Mazda's Strategy Regarding Tariffs Does Not Include Exiting Japan or Establishing New Factories for Electric Vehicles | Carscoops

      It now takes only seven days to extend the flexible production line at its upgraded Japanese plant, in contrast to the usual six weeks.

      Mazda's renovated Japanese facility has the capability to produce plug-in hybrid electric vehicles (PHEVs), hybrids, gasoline, diesel, and electric vehicle (EV) models.

      Throughout the factory, automatic guided vehicles assist in the installation of powertrains.

      The company can swiftly adjust its production capacity based on the demand for EVs.

      Mazda has received criticism for its gradual introduction of appealing EVs. While the new EZ-6 sedan and EZ-60 SUV have attracted interest, their primary markets are China and Europe, both being based on Chinese models. However, this situation is set to improve.

      The company intends to release its own EVs soon, distinct from the EZ models showcased. The first of these new vehicles is expected to go into production in 2027 at Mazda’s existing Hofu 2 assembly plant in Japan. In contrast to some competitors, Mazda will not establish a separate production line for EVs.

      Flexible Production and Cost Reduction

      Rather than taking the conventional route of creating a completely new manufacturing process for EVs, Mazda has developed a flexible system that allows for the production of electric vehicles alongside hybrids, gasoline, diesel, and PHEV models. According to Mazda representatives speaking to Auto News, this innovation aims to reduce investment costs by an impressive 85% and cut production lead time by 80%.

      “A dedicated EV line isn’t necessary because our lines can already accommodate mixed production,” said Taketo Hironaka, managing executive officer responsible for production engineering, to Autonews. “This plant is at the forefront of Mazda’s manufacturing.”

      The Hofu H2 site currently assembles the CX-60, CX-70, CX-80, and CX-90 models. It has moved away from fixed conveyors, opting instead for flat pallet platforms that glide across the factory floor. Automatic guided vehicles transport vehicle powertrains and position them as needed, regardless of whether the vehicle is a PHEV, diesel, or EV. This flexible arrangement allows Mazda to extend a production line in just seven days instead of the previous six weeks.

      Mazda is also implementing a lean asset strategy to maximize the use of its existing production resources. Taketo Hironaka, managing executive officer in charge of production engineering at the Hofu 2 factory, noted that the company aims to maintain factory capacity utilization close to 100%. This flexibility enables swift adjustments to production levels for hybrids and EVs in response to fluctuations in EV demand.

      “Mixed production means our battery electric vehicle (BEV) ratio will vary based on customer demand at any given time,” Hironaka explained. “We could see a BEV ratio of 100 percent or as low as 0 percent. We’ve managed to build such a flexible production system this time. For a smaller player like us, maximizing the use of our production lines through mixed production is a strategic approach. Under our lean asset strategy, we intend to fully utilize our existing facilities as we navigate the early stages of electrification.”

      Tariffs and the U.S. Market

      Efficient production is not solely about cutting costs; it also serves as a safeguard against external challenges. Mazda is preparing for the effects of the new 25 percent tariff on vehicles and parts imposed by the U.S. government, a measure that could significantly impact the company in its largest market outside Japan.

      “The 25 percent figure is outrageous,” Hironaka stated to the publication. “We will manage what we can. The priority is to eliminate any waste in fixed costs and capital investments. In this regard, the Hofu No. 2 plant exemplifies our approach,” he added.