July 31 Mazda Motor Corp has abandoned
its plan to ship automobiles to Brazil from a plant it is
constructing in Mexico due to the South American nation's new
import restrictions, the Nikkei reported.
Instead, the automaker plans to begin local production in
Brazil by 2014, the business daily said.
To protect the local industry, Brazil began restricting the
value and volume of passenger cars that can be imported
tariff-free from Mexico in March, the Japanese business daily
Mazda is in talks with a Brazilian firm to outsource the
production of over 70,000 subcompacts and other models at the
outskirts of Sao Paulo using the Japanese's company's
cost-saving methods, the Nikkei reported.
The Mexican plant is expected to start with a production of
140,000 units a year and more than double the output to 300,000
units or more in a few years, the paper said.
Mazda will also target the European market with its Mexican
plant to make up for the loss of exports to Brazil, Nikkei said.
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