Mazda reveals ’Lean Asset Strategy’ for electrification, aims for higher asset efficiency

Published 18/03/2025, 16:06
© Reuters.

Investing.com -- Mazda Motor (OTC:MZDAY) Corporation has revealed its "Lean Asset Strategy", a plan designed to implement the company’s multi-solution approach to electrification. The strategy aims to enhance Mazda’s value as a niche player by increasing the use of existing assets for the timely development, production, and introduction of various products and electrification technologies.

The company views the period leading up to 2030 as the "dawn of electrification". Under its 2030 Management Policy, Mazda intends to promote electrification with multi-solutions, to flexibly respond to diverse customer needs and environmental regulations.

The "Lean Asset Strategy" will reduce the previously announced 1.5 trillion yen investment in electrification by 2030. This investment was expected to reach around 2 trillion yen due to inflation. However, through optimization of investments such as battery investment, it will be reduced to around 1.5 trillion yen in total. In comparison to procuring all batteries independently, the investment is expected to be halved from 750 billion yen by utilizing collaboration.

In terms of manufacturing, Mazda is implementing "Mazda Monozukuri Innovation 2.0", a unique development and production process innovation. This process has tripled productivity, allowing for more complex development with the current level of resources.

For the battery EV set to be launched in 2027, Mazda anticipates a reduction in development investment by 40% and development man-hours by 50% compared to conventional development. This reduction is expected to be achieved through collaboration and partnership.

Additionally, by utilizing existing manufacturing assets to produce both battery EV and engine vehicles on the same production line, the initial capital investment can be reduced by 85% and the time for mass production preparation by 80% compared to building a new factory dedicated to battery EVs.

As the automotive industry enters a transformative period, Mazda aims to evolve the “joy of driving” for the next generation while balancing sustainable technological development and management flexibility.

Specific initiatives under the "Lean Asset Strategy" include "Mazda Monozukuri Innovation 1.0" and "Mazda Monozukuri Innovation 2.0". These initiatives aim to increase efficiency and flexibility in development and production. They also plan for the development and production of battery EVs to engine vehicles.

In the development field, model-based development for individual component units has been promoted under "Mazda Monozukuri Innovation 1.0". It has evolved to manage the modeling of the entire vehicle by utilizing AI and other technologies.

In the area of production, "Rootless Production Equipment" that employs Automatic Guided Vehicle (AGV), Unmanned Guided Vehicle, has been introduced to the mixed production line to produce battery EVs and engine vehicles in the same line.

The company also plans to introduce the SKYACTIV-Z, which meets strict emissions regulations such as Euro 7 in Europe, LEV4 and Tier 4 in the US, as the core engine of Mazda’s engine line-up in the era of electrification. This technology will be introduced in combination with Mazda’s proprietary hybrid system from the next MAZDA CX-5 by the end of 2027.

The battery EV developed in-house to be launched in 2027 will be produced in Japan for global deployment. The EV-dedicated platform developed in-house takes into account the continuing evolution of battery technology, and can accommodate diverse types of battery, ensuring high flexibility to derive different model types.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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