Torrential Downpours Cost Mazda Almost $250 Million This Summer CarBuzz News Features New Cars Used Cars Sell My Car Shopping Tools Car Reviews Car Finder Compare Cars Best Cars Car Dealerships Used Car Reviews Car Advice Home News Torrential Downpours Cost Mazda Almost $250 Million This Summer

Torrential Downpours Cost Mazda Almost $250 Million This Summer

Sep. 23, 2018 10:35 AM ET by Jared Rosenholtz Industry News / Comments How did a little rain cause so much damage? Mazda is currently working with Toyota to build a $1.6 billion production plant in Alabama, but until it is complete, the Japanese automaker must rely on its factories in Japan. This wouldn't be such a bad thing if it weren't for recent trade tensions with the US as well as a disastrous act of nature. According to Automotive News Europe, heavy rain this summer caused Mazda to lose 44,000 units of production. Mazda was forced to suspend production back in July due to heavy flooding in western Japan, with the company only resuming production last week. Mazda The company issued a statement detailing the impact of the torrential rain, outlining that the "production volume of vehicles and knockdown parts for overseas production dropped by 44,000 units and 23,000 units, respectively." Mazda didn't specify how many of the vehicles were intended for the US and other foreign markets but did say the parts were intended for shipment to factories in Thailand, Mexico, and China. The biggest hit from the loss of production was the CX-3 and CX-5 crossovers, which accounted for 33,000 of the 44,000 lost units. Mazda So how big is a 44,000 unit loss for Mazda? The Japanese automaker will count the missed production as a 28 billion yen ($249.3 million) charge in the fiscal second quarter. Earlier this year, Mazda hit a production milestone by building its 50 millionth car and had plans to produce more than 2 million vehicles annually by 2024. This year, the company planned to increase production by 2% to 1.66 million units, but the unforeseen rain will likely put a dent in that goal. Fortunately, Mazda is back up and running, and after some time passes, this will merely be a small speed bump for a company that is accelerating quickly. Mazda

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Mazda CX-3 Mazda CX-5 Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top