Mazda Signs Agreement with Sollers to Establish Joint Manufacturing Company in Russia

Based on this agreement, the joint venture company will locate its production facility in Vladivostok, in Russia’s Far Eastern Federal District and operations will begin in the fall of 2012. The joint venture facility will be used for the assembly of Mazda’s new CX-5 SUV, the next generation Mazda6 and a Sollers-owned brand vehicle, for the Russian market. Production capacity of the new plant will be 50,000 units per year at the start of operations with the aim of increasing that capacity to 70,000 units per year.

The automotive market in Russia has made a strong recovery since the financial crisis of 2009. In the calendar year of 2011, demand for new cars increased approximately 40% from 2010 to 2.65 million units, making it the second largest market in Europe after Germany. Furthermore, demand is expected to grow to around three million units in 2015.

In 2011, Mazda sold approximately 40,000 units in Russia,a roughly 60% increase year on year. Together with our joint venture partner Sollers, Mazda will expand its business in the fast growing Russian market and will accelerate its efforts to strengthen emerging market business and establish global production footprints in line with its Structural Reform Plan.