HIROSHIMA, Japan—Mazda Motor Corporation announced it held a ceremony today to celebrate the start of engine production at its powertrain plant in Thailand, Mazda Powertrain Manufacturing (Thailand) Co., Ltd. (MPMT).

Approximately 400 people attended the ceremony, including MPMT President and CEO Hidenori Kawakami and Mazda's Managing Executive Officers Kiyotaka Shobuda and Kazuhisa Fujikawa.

Mazda Powertrain Manufacturing (Thailand)

The engine plant at MPMT was established in response to the second phase of the Thai government's Eco-Car program^* which applies preferential taxation to fuel efficient, low-emission vehicles. It is the fourth production base for SKYACTIV engines, following the Hiroshima Plant in Japan, Changan Ford Mazda Engine Co., Ltd., in China and Mazda de Mexico Vehicle Operation in Mexico. The plant can produce approximately 30,000 units per year. Currently, SKYACTIV-D 1.5 diesel engines produced at MPMT are supplied to Mazda's vehicle production facility in Thailand, Auto Alliance (Thailand) Co., Ltd., for use in the Mazda2 for the Thai market.

"Thailand is our most important production location outside Japan; our first overseas base capable of comprehensive vehicle manufacture, including engine and transmission production as well as vehicle assembly," said Kiyotaka Shobuda. "Mazda is committed to producing vehicles in this country at the same high-quality level as we do in Japan, and delivering to market products that offer Mazda's unique driving pleasure, in a timely manner. In doing so, we will further contribute to the development of the Thai automotive industry and enhance the Mazda brand."

Mazda will continue its efforts to enrich people's lives through a variety of touch points, including the production of high-quality cars, and become a brand with which customers feel a strong emotional connection.

• *  The Thai government's tax incentive program for fuel-efficient, low-emission compact cars (with engine displacement of 1.3 liters or less for gasoline, and 1.5 liters of less for diesel). Requirements for the program include meeting Euro5 emission standards, fuel economy of 4.3 liters per 100km or better, and CO2 emissions of 100g per km or less. Models approved for the program receive preferential taxation in terms of corporate income tax, equipment import duties, etc.