MAZDA, JAPAN’S least profitable car maker, and Italian car firm Fiat have agreed to jointly develop a sports car and discuss further cooperation in Europe as part of a broader partnership.
The new car will be based on technology from Mazda’s MX-5 roadster and sold under both the Mazda and Fiat’s Alfa Romeo brands. The rear-wheel-drive car will be manufactured in Mazda’s factory in Hiroshima and production for Alfa Romeo may begin in 2015.
The preliminary agreement paves the way for Mazda to expand sales in Europe through Fiat as the Japanese car maker seeks to end four straight years of losses.
Fiat, which also controls Chrysler, targets expansion in Asia to counter losses in Europe and reduce dependence on the US and Brazil for profit.
The car makers have also agreed to further discuss co-operation in Europe, they said, without elaborating. Fiat, based in Turin, Italy, which owns 58.5 per cent of Chrysler, has sought to expand in Asia amid the European slump.
Fiat’s loss before interest, taxes and one-time items in Europe nearly doubled to €207 million in the first quarter. – (Bloomberg)