Mazda Scraps Plans for U.S. Plant: Report
Troubles at its partner Ford lead the Japanese automaker to scrap plans for a new U.S. plant, according to a report.
Mazda Motor
of Japan has scrapped plans for a new factory in the U.S. because of deteriorating sales and the troubles at its partner
Ford Motor
(F)
, reports the
Nikkei
business daily.
Mazda later issued a statement saying it hadn't planned to expand output in the U.S. in the first place,
Reuters
reports.
Mazda had considered using a former Ford plant, or building a new one with Ford, to produce fuel-efficient mid-size cars,
Nikkei
reported. The plant had been scheduled to open after 2010.
Ford's consideration that it sell part of its 33.4% stake in Mazda was another reason to scrap the plan for a second U.S. factory, the newspaper said.
This article was written by a staff member of TheStreet.com.
