Mazda Cuts Down Production in Japan and Reduces Pay for White-Collar Workers

Following on its December 12, 2008, announcement, Mazda has announced further cuts in production at its Japanese plants in a bid to cope with slowing demand in global car sales. In addition to other measures that include 1,500 job cuts and the elimination of the night shift from the Hiroshima Plant's Ujina Plant No.2 (U2) and the Hofu Plant's Hofu Plant No.2 (H2) in February, Mazda plans to suspend production on Fridays in February and March at both the Hiroshima and Hofu plants. Furthermore, the Japanese automaker said that it would reduce its managers' monthly salaries by an undisclosed amount from this month onwards.

"In response to the continuing deterioration in global market conditions, these actions are being taken to manage inventory levels and maintain an appropriate balance in production supply. Mazda will continue to monitor unpredictable market conditions and will swiftly respond with appropriate measures going forward," said Mazda in a statement.

Chrysler and Fiat Reported to be in Partnership Talks

Once again, the media is reporting that Chrysler LLC and the Fiat Group is in talks to form a strategic partnership that could give the American automaker access to platforms, engines and transmissions to Fiat's mini, small and lower /upper medium models. The Fiat Group on its behalf would benefit from Chrysler LLC's North American manufacturing plants and most importantly, the firm's distribution network as the Italian automaker has been trying to find a way to enter the U.S. market.

Citing -but not naming- people familiar with the matter, Reuters reported that the strategic partnership between the two automakers could possibly lead to the Fiat Group taking a stake in the ailing U.S. carmaker. For the record, neither Fiat nor Chrysler LLC where available to comment on the report.

Even before its divorce with Mercedes-Benz's parent company, Daimler - which still owns 19% of Chrysler LLC, the American automaker had been looking for a partner that would help them develop a range of small to lower medium front-wheel drive cars in a short period of time. Aside from Fiat, Chrysler LLC execs had been in talks with China's Chery Automobile as well as with Nissan. Up until now, the only deal sealed was with Nissan that resulted in the creation of the Versa-based and South America bound, Dodge Trazo.

The Fiat Group that only sells Ferraris and Maseratis in the U.S., has been constantly delaying the return of its Alfa Romeo brand in the States. A possible deal with Chrysler could help the Italians speed up Alfa's comeback as well as bring other models of the group like the highly successful Fiat 500 and the Abarth range. To do so, Fiat would have to build the cars here in the U.S. in order to price them competitively and distribute them through Chrysler, Jeep and Dodge dealers.

Via: Reuters

2009 MINI One Clubman: New Entry-Level Model to Debut in Geneva

MINI is one of the first automakers to reveal details on the cars they plan to introduce at the forthcoming Geneva Motor Show on March 3, 2009. BMW Group's subsidiary will reveal a new entry-level model in the Clubman range called One. Like the MINI One hatchback, the more practical Clubman One is powered by a 1.4-litre, four cylinder petrol engine producing 95HP. A short-shifting 6-speed manual transmission is standard, while buyers can also opt for a 6-speed auto with manual-shift capability.

Equipped with a Brake Energy Regeneration system, Auto Start Stop and Shift Point Display as standard, the base Clubman achieves a combined fuel consumption figure of 52.3 mpg UK (43.5 mpg U.S. or 5.4 lt /100 km). Although less powerful than the Cooper, the Clubman One will retain the same steering and suspension set-up as its sportier sibling.

The MINI One Clubman will go on sale across Europe by the end of March and it will be available new exterior color combinations including silver or black variants with the same colour C-pillars (previously the C-Pillar was always supplied in a contrasting shade). Prices in the UK have been set at £13,290 OTR. Comparatively, the 120HP Clubman Cooper starts at £14,515.