Mazda 2 Coming to Canada? = More Competition for the Honda FIT!

NEW YORK – The Mazda2, a slick little subcompact sold in Europe and Asia, is coming to Canada, confirmed Mazda Motor Corporation president and CEO Takashi Yamanouchi.


“I've just decided,” said Yamanouchi, a 42-year veteran of Mazda who assumed the top job last November.

The Globe and Mail is the first news outlet to confirm that the Mazda2 will join Mazda Canada' lineup. The announcement was not part of formal Yamanouchi's formal remarks during press days for the New York International Auto Show at the Jacob Javits Centre.

While Yamanouchi would not confirm an exact launch date, sources suggest the Mazda2 would go on sale within the next year. It is designed to compete against the Honda Fit, Toyota Yaris, Hyundai Accent and Chevrolet Aveo, among others.

The Mazda2, of course, is the foundation for the Ford Fiesta already on sale in Europe and other markets. The Fiesta is due at a 2011 model. Yamanouchi said Mazda has wrestled with the decision to add the subcompact to the Mazda Canada's lineup.

“There has been a lot of discussion about that,” he said. “There is concern it would cannibalize Mazda3 sales. We need it to be incremental.”

The Mazda3 is the Canadian operation's most important model by far. The compact was Canada's best-selling car overall for the first two months of this year and No. 3 overall in Canada in 2008, behind the Honda Civic and Toyota Corolla.

Mazda officials are rightly concerned that some buyers might opt for the less expensive Mazda2 rather than purchase the Mazda3. Mazda would need to price the Mazda2 starting below $15,000 for it to make any sense at all and that is at least $1,000 less than the most economical Mazda3.

Pricing the Mazda2 so that it can be profitable and also compete effectively won't be easy. The strong yen makes Japanese exports expensive overseas.

Nonetheless, Yamanouchi said that Canada is Mazda's fourth-largest market in the world and plays a critical role in the company's fortunes. Given 50 per cent of all passenger car sales in Canada are comprised of compact and subcompact models, Mazda Canada has been under pressure to sell the Mazda2 for some time.

News of the Mazda2 coming to Canada was the most startling development during a second media day at the New York show. But it was by far not the only announcement.

Subaru unveiled the 2010 Legacy sedan and Outback wagon, promising to tackle rivals such as the Toyota Camry, Honda Accord, Ford Fusion, Nissan Altima and Chevrolet Malibu with more vigor.

Subaru Canada president and CEO Katsuhiro Yokoyama said the outgoing all-wheel-drive Legacy is slightly undersized compared to other midsize sedans. But the 2010 model, with its all-new platform, more robust styling and added features, is better positioned to take on the sales leaders in the midsize sedan segment.

“Now we can compete, but first we must get on the shopping list,” he said.

That means Subaru Canada will not cut its marketing budget this year in an effort to reach out to new customers. The company is reasonably well positioned to do so, too. Last year Subaru Canada had its best sales year ever, selling nearly 20,000 vehicles despite the economic downturn. Sales remain strong this year, also.

Yokoyama said Subaru's success in Canada can be traced to the new models launched in the last 18 months. The Forester crossover, in fact, won its category in the annual car of the year awards handed out by the Automobile Journalists Association of Canada (AJAC).

The Impreza compact, meanwhile, is one of the few AWD compact cars sold in Canada and it enjoys a strong reputation for safety and reliability.

The third pillar in the company's product lineup in Canada is the Legacy/Outback combination. It will roll into dealer showrooms late this summer. Pricing will be announced later this year.


Other announcements at the show:
Scion, Toyota's youth brand, showed a minicar concept clearly based on the Toyota iQ sold in Europe and Asia. Scion comes to Canada next year and a production version of the minicar might be part of the lineup, competing against the Smart fortwo.

Mercedes-Benz showed the E63 AMG, a 518-horsepower version of the E-Class; Hyundai previewed the next Santa Fe with a crossover concept; Mitsubishi had an upscale concept version of its Outlander crossover; and Acura's ZDX prototype, based on the MDX crossover utility platform, will go on sale in the fall. The ZDX is a so-called four-door coupe and will be built in Alliston, Ontario.


Source;
http://www.theglobeandmail.com/blogs/driving/