TOKYO -- In the midst of a record-setting year, Mazda has set modest three-year financial targets in a new midterm business plan.
Mazda Momentum is the name of the new plan, which officially began in April. It overlaps with Mazda's Millennium Plan which ends next March.
Mazda Momentum aims to reach three key goals by March 2007. Compared with the results in the fiscal year ended March 31, 2004, the plan calls for Mazda to:
There are "no eye-catching metrics in the targets," said Mazda President and CEO Hisakazu Imaki. Rather than set aggressive targets, he says Mazda aims for "steady progress."
To reach those goals, Mazda says it will launch 16 new models worldwide between April 1, 2004, and March 31, 2006.
"These will be targeted for segments where we've never made an entry," Imaki says.
Many of those new models will be on architectures developed jointly with Ford, which owns 33.4 percent of Mazda.
Today, 50 percent of Mazda's volume is the result of joint programs with Ford. That is up from 10 percent four years ago. It will rise further to 80 percent by March 2007.
Mazda's sales in Europe in the fiscal first half were especially strong, rising 20 percent to 143,000, with record sales in the UK, Italy, Spain and Portugal. In the same period, Mazda sold 140,000 passenger cars in the US.
For the full fiscal year to March 31, 2005, Mazda is predicting European sales of 285,000, up 12.5 percent. It is predicting US sales of 275,000, up 1 percent.
During the Mazda Momentum period, r&d spending will rise 30 percent to E800 million from E613 million in the fiscal year ended last March.
Mazda forecasts a record operating profit of about E545 million (¥78 billion) in the current fiscal year, up 11 percent.