UPDATE 1-Mazda to cut costs to counter yen’s rise – Nikkei

Sept 4 (BestGrowthStock) – Mazda Motor Corp (7261.T: ) is taking
emergency cost cutting steps to soften the impact of the rising
yen on its fiscal 2010 profit target, the Nikkei business daily
reported.

The automaker, which expects a 30-40 billion yen boost from
these steps, will ask suppliers to cut costs by 3-5 percent,
the Nikkei said.

The company plans to adopt a common structure for making
differently sized cars to help reduce the number of processes
required for design, development and crash testing, the daily
said.

The new method will be used with its mainline Axela and
Atenza passenger cars, known overseas as Mazda3 and Mazda6, the
Nikkei said. The next iterations in these series are expected
to require 30 percent fewer processes to develop.

Mazda also aims to boost profitability in sales operations.
The company’s global sales are expected to exceed 1.3 million
vehicles this fiscal year, beating its previous target, helped
by robust demand in Thailand and China, the Nikkei said.

The Japanese currency is 6 yen stronger to the dollar, and
17 yen to the euro, than Mazda’s assumed levels, the daily
added.

Each 1 yen rise against the dollar and the euro erodes
Mazda’s operating profit by 3 billion yen and 1.2 billion yen,
respectively, Nikkei said.
(Reporting by Vinay Sarawagi in Bangalore; Editing by Don
Sebastian)

UPDATE 1-Mazda to cut costs to counter yen’s rise – Nikkei