Mazda and Texas

There are five third tier Japanese companies building automobiles; Subaru, Mitsubishi, Suzuki, Isuzu, and Mazda.

These companies may lack the economies of scale, technical depth, and capital to weather the coming industry consolidation. With sales booming in 2006-2007, Mazda is perhaps the strongest brand of the group.

Mazdas are pretty good vehicles, well liked by the automotive journalist community. Consumer Reports has "recommended" ratings on four Mazdas; MX-5 Miata, Mazda3, Mazda5, and Mazda6.

These cars are very popular in the sought after youth market, only Toyota Scion does better with the key entry level demographic.

But these vehicles struggle to compete across the board with cars from Toyota and Honda. While climbing sales and profits help secure the company's future, US market share is still under 2%.

Mazda gained prominence in the 1960's, partly due to their early implementation of Wankel rotary engines. I remember it being featured on the cover of Popular Mechanics in 1977, a big deal in those days.

But in the 1970's, the energy crisis was an even bigger deal. Rotary Mazdas were harder on gas than vehicles from Honda, Datsun (Nissan), Toyota, and Volkswagen.

Sales fell.

A series of ups and downs followed, until the Ford Motor Company began acquiring shares. Ford's stake rose with each downturn, until the current 33.4% share was reached after a disastrous 2001 selling season.

Under My Thumb: Mazda and Ford

Still headquartered in Hiroshima, Japan, Mazda Motor Corporation maintains a quaintly oriental corporate image. Its brand message is "Zoom-Zoom" (love of motion experienced as a child).

Record profits are slated for reinvestment in a new growth plan to become competitive with Japanese rivals.

Mazda's recovery did not require a cash infusion from Ford, but the two are intertwined to the extent that Ford's destiny is shared by its Japanese sibling.

Platform and parts sharing, technology development, and combined marketing, as well as British nameplates Jaguar and Land Rover to sell, suggest that Ford won't dump the shares to keep the lights on in Michigan.

Mazda Quality

Since 75% of Masdas are still built in Japan, quality on those units should be high. In the company's Flat Rock, Michigan plant, hourly employees are represented by the United Auto Workers Union.

Many of the parts used in Mazdas assembled in the US plant are Ford's. Naturally some quality issues exist.

The 2006 J.D. Power Initial Quality Survey, using revised methodology, awards the Mazda nameplate 18 out of 40 stars. This is not a good score.

For comparison;