The decision by Ford and Mazda to part ways in South Africa “gives Ford the opportunity to concentrate on their business, and we on ours”, says Mazda Southern Africa MD David Hughes.

Ford Motor Company of Southern Africa (FMCSA) and Japan’s Mazda Motor Corporation (MC) announced earlier this year that FMCSA had decided to return Mazda distribution rights for Southern Africa to MC. The handover is expected to be completed around mid-2014.

Ford will, however, continue to assemble the Mazda BT-50 bakkie at its Silverton plant, in Pretoria.

As it sets out on its own, Mazda Southern Africa will launch the new Mazda3 and Mazda6 locally next year, also adding a SkyActiv 2.5 ℓ petrol and a 2.2 ℓ diesel engine to its CX-5 range.

Mazda’s SkyActiv technology embodies a set of innovations by the Japanese manu- facturer to reduce fuel consumption on traditional internal combustion engine vehicles.

“SkyActiv technology is making a big change in Mazda’s business all over the world, and is returning Mazda to profitability,” says Yuji Nakamine, senior managing executive officer in charge of operations in Europe, Asia, Oceania, the Middle East and Africa.

He notes that 30% of Mazda vehicles sold in the last financial year were SkyActiv vehicles, growing to an estimated 50% this financial year, and a probable 80% by 2016.

Nakamine adds that Mazda’s business globally “is more robust now”, after it spent some time and resources on improving the group’s cost structure.

It also moved to build more vehicles outside Japan to avoid exchange rate risks linked to a strong yen, which makes Japanese exports more costly.

Mazda’s operating profit should this year exceed $1.2-billion, following five tough years for the manufacturer.

In South Africa, Mazda Southern Africa will set up its own head office, employing around 40 people, says Hughes.
“We are talking to all dealers in an open manner, discussing the opportunities that exist within the Mazda brand.”

He declines to discuss the investment Mazda will have to make to go it alone in Southern Africa.

Mazda sales in Southern Africa are expected to reach around 6 500 units this year, up from 6 000 vehicles in 2012.

Hughes expects the new Mazda3 and Mazda6 models to have a significant impact on sales figures in 2014.

“We plan to grow the business in an orderly manner. Our job now is to get the dealers up and running.”

Nakamine adds that Mazda has “a strong brand heritage” in South Africa.

“I believe in this market. We have huge potential in this market, if we do the right things.”

Mazda will launch eight new vehicle models by 2016, but not all of these will necessarily come to South Africa.