November 12, 1999

Mazda Announces Sourcing for New Global Engine Family

Mazda Motor Corporation announced today that the company will join with Ford to produce a new global inline engine family for the 2001 model year and beyond passenger cars and light trucks. Mazda's engine plant in Hiroshima has been selected as one of the production sites along with Ford's engine plants in Dearborn, Michigan, U.S.A.; Chihuahua, Mexico; and Valencia, Spain.

These plants will each have allocated responsibilities and will play key roles in the future of gasoline engine production in an important new global in-line engine family for Mazda and Ford vehicles. Dependent on consumer demand, expected annual production with these four facilities is projected to be 2 million units by 2004.

This strategy will focus on optimizing operational efficiencies by fully exploiting the production capacities of engine manufacturing facilities of Mazda and Ford on a global scale to make the most of synergetic effects. This global scale engine manufacturing sourcing has many advantages, such as increased economies of scale, drastically improved efficiency and flexibility, as well as optimized return on investments. This will result in increased competitive strength and better value for our customers and shareholders.

One of Mazda's engine plants in Hiroshima, which has been designated as one of the strategic sites for Ford as well as Mazda, will start producing new engines in the fall of 2001. Mazda will add a new sophisticated line by consolidating existing ones in order to facilitate a highly flexible and agile manufacturing operation. The new engine line will have a capacity of 425,000 units per year.

The new engine family has been under development jointly with Mazda and Ford, taking advantage of our combined R & D strengths. Designed to address worldwide consumer expectations, the new engine family delivers spirited performance while providing class-leading quality, Noise Vibration & Harshness (NVH) rating, and value. With its lightweight construction, high fuel efficiency, and low emissions, it will also help Mazda and Ford meet their worldwide environmental pledge.

James E. Miller, President of Mazda Motor Corporation, stated, "This is a critically important strategy to make Mazda more competitive for the next millennium. This new Global Engine Family strategy will further promote the merits of our leveraged relationship." He continued "By sharing world-leading engine technology yet developing distinctive engine characteristics for Mazda products, we will be able to offer customers the best value. In addition, we can focus our efforts on designing and engineering cars from the customer's perspective and making the Mazda personality clearly distinctive."