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Out 5 Years, Mazda Re-entering SUV Market

Mazda will reenter the SUV market next year, with the introduction of the Tribute, a four-door SUV that will debut at the LA Auto Show on Jan. 3.

Richard Beattie, the president and CEO of Irvine-based Mazda North American Operations, said the vehicles will begin hitting showrooms in spring or summer.

Mazda previously sold the Navajo, a two-door SUV, from 1991 to 1994, but ceased production because of poor sales performance, which the company attributed to a lack of consumer interest in two-door SUVs.

But Beattie has much more confidence in the Tribute.

“The Tribute has more of the two-door sportiness even though it is a four-door,” he said.

Mazda has also been spending time on its concept vehicles and Beattie thinks its latest one, the RX-Evolv, will be a hit.

“It had a huge reaction in Tokyo, but it is still in the works,” he said.

The four-door RX Evolv is using the patented rotary engine that is best remembered in the RX-7. The RX-Evolv has 280 horses and is fuel efficient for having such a powerful engine, Beattie said. It has suicide doors, a sleek, sporty design, an ID-card access system and a few more gadgets to make Sunday drives or freeway commutes a bit more enjoyable.

Mazda last year turned around a three-year decline in sales, and this year introduced a redesigned 626 and MPV minivan, repackaged the Millenia and launched an ad campaign to give the company a new, sportier image.

“We are now focusing on the growth side of the business,” Beattie said.

From 1994 to 1997, Mazda’s U.S. auto sales dropped 60% until the sales bottomed out in 1997 at 221,840 vehicles, a 15-year low.

In 1997, Beattie, started a series of cost-cutting measures. The company laid off 21% of its American labor force, about 440 people. It stopped production of six of its model lines, including the MX-6 and the RX-7, because demand for them was diminishing.

In the past few years, the company also has consolidated its vendors and developed new vendor partnerships that streamlined efficiency. Beattie also removed about 150 underperforming dealers.

Mazda’s U.S. sales grew 8.4% last year to 240,547. Mazda is forecasting 248,800 sales for this year, a 3.4% growth and is banking on its redesigned and new models to boost sales 20% to 298,500 next year.

Its September sales were 42% better than the previous September and last month’s sales were 7.3% better than the previous October. n

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