Mazda Bets on Flexible Assembly Line to Beat Tariffs with its Next Japan-Built EV

Mazda Bets on Flexible Assembly Line to Beat Tariffs with its Next Japan-Built EV

Author: Anthony Lemonde

Mazda will leverage its flexible assembly lines to reduce production costs of its upcoming EV, making it profitable even if U.S. tariffs go ahead.

The automaker will launch a new EV in 2027, with production taking place in Hofu, Japan.

The assembly line will be able to accommodate gas, diesel, hybrid, PHEV, and electric models.

This should help the company reduce production costs enough to remain profitable in the face of U.S. tariffs.

Despite slowing EV adoption and global economic uncertainty caused by the threat of tariffs from the United States, Mazda presses forward with its plans for a new electric vehicle to be launched in 2027.

Indeed, the Japanese automaker intends to add a new electric vehicle to its lineup, the first since the MX-30 EV was discontinued.

Even if the new EV is expected to be offered in North America, developing a new supply chain to manufacture it at Mazda and Toyota's joint factory in Alabama wouldn't make financial sense, according to Taketo Hironaka, managing executive officer in charge of production engineering for Mazda.

This means the upcoming EV could be subject to tariffs imposed by the American administration on vehicles manufactured outside of the United States, which could be as high as 25%.

To remain competitive and profitable even if these tariffs are put into place, Mazda bets on its "lean asset" strategy, which calls for highly flexible and technologically advanced assembly lines that could cut production costs significantly.

Read more here!

Source: Mazda Bets on Flexible Assembly Line to Beat Tariffs with its Next Japan-Built EV - Motor Illustrated

 

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