Review Car

Ford Mazda Plant in Michigan Under Review

Mazda is currently looking at options for their US plant that is operated with Ford, who has been a long time partner with the company. The US plant is located in Flat Rock, Michigan. Primarily it builds the Ford Mustang and the Mazda 6 sedan. Last year the plant produced around 45,000 Mustangs, while also producing 77,586 Mazda 6 sedans. However, in order to even run at seventy percent capacity, the plant needs to be churning out around 240,000 to even make a profit. This is why Mazda is considering what to do with plant because right now it is a loosing venture. 

Mazda plans to make an announcement of what they plan to do by the middle of this year. However, when asked if Mazda would pull out, the CEO said that the possibility is there. Right now, both Mazda and Ford are looking to introduce more fuel efficient models and may look at this plant as the place to have these manufactured. However, the details are still up in the air, as neither automaker is making many comments regarding the issue. Ford has yet to comment on what they wish Mazda would do or whatnot. The only comment that they have made is that they do not feel comfortable commenting on the business dealings with Mazda since it is Mazda's CEO's place to let this information be known. 

What would it mean for the plant if Mazda does pull out? For one, it would make the plant belonging to Ford only, which could mean that Ford has the opportunity to increase output of some vehicles by moving the building of these vehicles to Flat Rock. However, if Ford does not put in any other vehicles to be manufactured at the plant, people are going to be out of jobs at the plant. It could also lead to the numbers of Mustang's that are being produced to lower numbers.