Mazda2, Mazda3 To Be Built At New Plant In Mexico

Mazda's official press release from Japan said their new plant in Salamanca, central Mexico, is aimed at "mainly" serving the Central and South American markets, and so the company will be building the Mazda2 and Mazda3 there instead of at a U.S.-based plant. Both the Mazda2 subcompact and Mazda3 compact are sold in the U.S., although Mazda isn't yet saying whether the plants would supply the U.S. as well.

Several makers build small cars in Mexico for import to the U.S. Mexican manufacturing labor rates averaged $3.75 an hour last year, including benefits, compared to $33.46 in the U.S. and $38.77 in Canada, according to IHS Global Insight. Mazda just announced it will stop producing its larger Mazda6 models at a plant it operates jointly with Ford in Flat Rock, MI.

The new plant will produce both engines and transmissions. It will be situated about 150 northwest of Mexico City and will open in 2013. The Mazda3 is the brand's best-selling model in the U.S. and the Mazda2 is built off the same platform as the Ford Fiesta.

At the same time, Mazda said announced a stepped up effort through Japan's Sumitomo to sell cars in Brazil, one of the world's hotter emerging markets for cars.

"By leveraging Sumitomo Corporation's extensive experience and knowledge of emerging markets, we will continue to strengthen our business in Mexico and throughout Central and South America, including the rapidly growing Brazilian market," said Mazda CEO Takashi Yamanouchi.