Mazda CEO: Staying Small, Challenging the Norm & The Future of MX-5
Mazda Motor Corporation is charting a course that prioritizes a focused production volume and a steadfast commitment to the driving experience, even as the automotive industry pivots towards electrification and increased scale. The company, under the leadership of President and CEO Masahiro Moro, who assumed the role in the summer of 2023, succeeding Akira Marumoto, intends to remain a relatively boutique manufacturer, eschewing the pursuit of mass-market volumes.
According to comments made by Tibor Együd, Managing Director of Mazda Motor Hungary, with 27 years in his current position and nearly 30 years with the brand, Mazda deliberately seeks challenges and differentiates itself through unique solutions. “Every automaker, and every other manufacturer, needs to choose some value and build and create around it. And Mazda has always been like that. If a challenge comes, they definitely want to give an answer to it. So they like challenges and like to respond to them. And I think this uniqueness may also stem from that, if there isn’t one, we look for a challenge for ourselves, or if there is a challenge, we try to give a slightly different answer than the others. And I think again, we don’t do this out of some kind of punk attitude, but to distinguish ourselves, to have people who should choose Mazda because they give a different answer,” Együd stated.
This strategy translates into a production target of approximately 1.2 to 1.5 million vehicles annually, a level the company has no intention of significantly increasing. Moro and his team believe this scale is optimal given Mazda’s operational structure, which is heavily concentrated in its Hiroshima prefecture facilities, alongside smaller operations in Mexico, Alabama, and China – the latter primarily serving local markets. The company currently produces around 1 million vehicles in Hiroshima prefecture, split between its Hiroshima and Hofu plants, each contributing roughly 500-550 thousand units.
The emphasis on efficiency is central to this plan. Mazda intends to enhance its operational effectiveness by streamlining its supply chain and reducing the number of parts required in its vehicles, leading to faster and more precise delivery. This approach reflects a broader industry trend towards optimizing resource utilization in a challenging global economic environment.
A key element of Mazda’s identity is its dedication to the “Joy of Driving,” a core value that Moro is determined to preserve. This commitment is exemplified by the continued focus on the MX-5 Miata, a roadster that embodies the company’s philosophy. Martijn ten Brink, Mazda’s European CEO, has publicly stated that the MX-5 will “probably be around ‘forever’,” despite the increasing regulatory pressures and shifting consumer preferences that threaten the viability of traditional sports cars.
The future of the MX-5 remains under discussion, with Mazda yet to finalize the technical specifications of the next generation. However, the company is committed to ensuring the vehicle remains compliant with evolving safety regulations, such as the GSR2 standards in Europe, which mandate features like intelligent speed assistance and driver behavior monitoring. These regulations present a challenge for smaller manufacturers like Mazda, requiring significant investment to meet increasingly stringent requirements.
The 2023 Japan Mobility Show (JMS) showcased Mazda’s vision for the future, with the Iconic SP concept taking center stage. Notably, the exhibition primarily featured the MX-5, highlighting the company’s prioritization of driving pleasure. Moro acknowledged the strength of Mazda’s SUV lineup but emphasized the need to focus on what truly defines the brand. “We also have tons of great SUVs,” Moro said, “But, as we transition towards a more diverse mobility industry, I’d like us to resolutely focus on what Mazda stands for, which is the joy of driving. The MX-5 completely represents that. It’s about enriching lives.”
Mazda’s approach stands in contrast to the industry-wide push for rapid electrification and volume growth. The company is adopting a “flexible electrification roadmap” that balances the transition to electric vehicles with the continued development of internal combustion engines. This strategy aims to protect Mazda’s core strengths and maintain its unique position in the automotive market. The company’s long-term vision is to remain a focused, high-value manufacturer, producing between 1.3 and 1.5 million vehicles annually, prioritizing efficiency and the driving experience.