Overview
- Mazda will stop building cars in Japan for the Middle East through May after the Strait of Hormuz closed and cut off shipments in March.
- The company is redirecting factory slots to the US and Europe, increasing CX-5 and other Western-market models, and says decisions for June will hinge on shipping conditions.
- Peers are making similar moves as routes stay blocked, with Subaru halting exports to the region and Toyota trimming production of regional models such as the Land Cruiser.
- Mazda typically produces about 30,000 vehicles a year for Middle East buyers, a notable slice of output that the company can offset by shifting volume to Western demand.
- Shippers have suspended transits and war-risk insurance costs have risen for the Strait, which could also raise Japanese factory energy costs given the country’s heavy reliance on Gulf oil.