Mazda Production Interrupted Due To Torrential Rains

Mazda Production Interrupted Due To Torrential Rains

Since July of this year, auto maker Mazda has experienced torrential downpours that have severely impacted their manufacturing capabilities. The Hiroshima-based company has only resumed operations in mid-September, putting Mazda back over 44,000 units. 

The largest impact will be felt in crossover models such as the CX-3 and CX-5, as they were to constitute more than 33,000 of the lost units. Earlier forecasts had showed that Mazda was ramping up their global production capacity to 1.66 million units per year, but it's unclear exactly how much impact the recent stoppage will have on this figure. 

Mazda has authorized a one-time charge of almost $2.5 million in their second fiscal quarter to account for the lost output, though overall they have appeared optimistic that the recent events won't be overly detrimental to their yearly earnings with the fiscal year closing at the end of March 2019.

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Written By: Todd Hendrickson
Source: autonews.com