After 25 Years, Mazda Poised to Pull OUT of Flatrock

**Gannon** · February-19-11, 10:53 AM

I know this isn't Detroit-specific, but for the entire area and the auto industry...this is huge.

http://www.freep.com/article/2011021...xt|FRONTPAGE|p

I can remember training the very first executives Mazda sent over to staff that plant how to drive in the snow. It was 1985, and I was a salesperson at Seaway Motors in Dearborn. We were tasked to shuttle some 323s and 626s from a garage near the now Park Bar that had been used at the Auto Show down to the Ford Flatrock plant.

The guys almost couldn't speak any English at all, but I was able to learn that they had never SEEN snow...let alone tried to drive in it.

So when the first real storm hit, I went down there and showed them in that huge parking lot how to recover from slides and spins...THAT was a blast! A half-dozen Japanese middle-aged gents giggling with glee as they learned basic FWD rallye techniques with the hand-brake.

And now, after 25 years, they are moving on...it would be curious to know what the breaking point was for them. Taxes...unions...quality of manufacture...one can only wonder for now. I suspect a tax break expired...

No cheers on this one...

**wazootyman** · February-19-11, 11:05 AM

Don't get too gloom and doom just yet...

Japan’s second-largest car exporter will announce plans for the Flat Rock
factory by middle of this year, Ozaki told reporters today in Tokyo. The company
also may consider overhauling the plant or change the models built there, he
said without elaboration.

From: http://www.crainsdetroit.com/article...ates-with-ford

It seems that the problem is the plant is under-utilized:

The plant needs to run at 70 percent of its full 240,000-vehicle capacity to make a profit...

But:

Mazda’s Michigan plant produced about 54,000 vehicles last year, Ozaki said.

[[which is about 23% utilization by my math)

**Gianni** · February-19-11, 01:26 PM

They also make the Ford Mustang at that plant. No word on whether or how that will be affected. I hope Mazda figures out a way to keep production there. I loved my Michigan made, UAW built Mazda 6.

**Richard** · February-19-11, 02:58 PM

Even all of the big three are or have merged with overseas countries to build plants,the US market has leveled off and the only way they can expand is in merging into other countries,GM is the second best selling manufacture in Russia ,now Ford is there.

Another example of why the state of MI needs to be aggressively pursuing diversity,it only makes sense to move your factory to where the demand is.

**canuck** · February-19-11, 03:22 PM

And I think Ford is majority shareholder in Mazda still. Let's hope they boost production.

**Pickford-Bentler** · February-19-11, 04:23 PM

Ford is down to about 3% ownership of Mazda. The Mustang is the last RWD car in the Ford portfolio, moving forward. This presents a problem in that there is no other plant that can produce the Mustang. I doubt that Ford would want to axe the Mustang and try another lead baloon FWD sporty car like the Probe. The legacy of the 'Stang is too strong. Hopefully, this will force Ford to leverage the Mustang platform to produce other RWD products in the same plant in order to get unit production numbers to a profitable level. Mullaly is not going to go for any move that does not further commonization. Right now, Ford has no RWD products to match the Hyundai Genesis and Cadillac CTS. They surely have an engine - the Coyote V8 - that would do well in a RWD sedan.

All my wishfull thinking aside, I hope that Flat Rock gets good news.

**Don K** · February-19-11, 05:51 PM

Originally Posted by canuck

And I think Ford is majority shareholder in Mazda still. Let's hope they boost production.

Ford never had a majority; I think the most they owned was 34%, and they sold off most of that in 2008.

In any event, had the Mazda6 sold at decent volumes, that plus the Mustang would have kept Flat Rock operating profitably. Too bad about the 6. I got one of the current model 6's in fall of 2008 because it had more goodies than the Fusion and cost way less than the MKZ, and I love it. Unfortunately, not enough car buyers have seen things this way.

**canuck** · February-19-11, 11:42 PM

Originally Posted by Don K

Ford never had a majority; I think the most they owned was 34%, and they sold off most of that in 2008.

In any event, had the Mazda6 sold at decent volumes, that plus the Mustang would have kept Flat Rock operating profitably. Too bad about the 6. I got one of the current model 6's in fall of 2008 because it had more goodies than the Fusion and cost way less than the MKZ, and I love it. Unfortunately, not enough car buyers have seen things this way.

Do you have the wagon or sedan version? I am leasing my Mazda3 and the lease is over in july, I am thinking of maybe getting the wagon version before the new makeover. I dont like the new Batmobile look of the Mazda line.

**Hamtragedy** · February-20-11, 12:40 AM

Hey Gannon, I still have my 323 with the Full-time 4WD, turbo and a center differential lock. It wasn't made here, but only about 1200 left the showroom floors btw 1988-1989. The engine is still a 1.6,[[about a 1.62 now) and is currently being rebuilt. The head was ported and rebuilt years ago, add a bigger intercooler and a Thunderbird turbo, and 18 psi is about where the boost-limiter kicks in. Now if I can find a set of cheap synchros for the trans.

Drive sideways!

**mpf** · February-21-11, 06:59 PM

I bought a 2011 GT partly because of hearing the sad news app. a year ago [[layoffs), had been driving used cars for 20 years...Son and I also took a tour last summer in the place. There is a lot of jap. hardware inside, presses, robots, ect. Wonder who gets to keep it?

**Axle** · February-21-11, 08:58 PM

Originally Posted by Pickford-Bentler

Hopefully, this will force Ford to leverage the Mustang platform to produce other RWD products in the same plant in order to get unit production numbers to a profitable level. Mullaly is not going to go for any move that does not further commonization. Right now, Ford has no RWD products to match the Hyundai Genesis and Cadillac CTS. They surely have an engine - the Coyote V8 - that would do well in a RWD sedan.

Rebirth of the Crown Vic with a coyote v8? [[Considering STAP is getting shut down end of October/November). As much as it will be a very sore point with the locals to have the cv/gm/tc brought back elsewhere, having a RWD sedan continue from Ford will be nice to see.

Alex.