Mazda's Lean Asset Strategy: Pioneering Electrification and Efficiency

Mazda Motor Corporation has recently unveiled its innovative “Lean Asset Strategy,” aimed at revolutionising the company's approach to electrification and production efficiency. As the automotive industry undergoes a significant transformation, Mazda is positioning itself to meet the evolving needs of consumers while adhering to stringent environmental regulations.

Understanding the Lean Asset Strategy

The Lean Asset Strategy encapsulates Mazda's commitment to maximising the efficiency of its existing resources while simultaneously advancing its electrification goals. This multi-faceted approach is designed to navigate the complexities of modern automotive manufacturing, ensuring that Mazda remains competitive as it transitions into an era dominated by electric vehicles (EVs).

Key Objectives

1. Maximising Asset Utilisation: By optimising the use of current production facilities, Mazda aims to reduce unnecessary capital expenditure and improve operational efficiency.
2. Collaboration for Innovation: The strategy emphasises partnerships with other companies to share resources and knowledge, thereby accelerating the development of new technologies.
3. Sustainable Growth: Through efficient asset management, Mazda seeks to generate returns that exceed the cost of capital, fostering long-term sustainability.

The Context of Electrification

Mazda views the period leading up to 2030 as a pivotal moment in the shift towards electrification. The company’s management policy outlines a commitment to developing diverse electrification solutions that cater to varying customer preferences and regulatory requirements. This approach underscores Mazda's recognition of the need for flexibility in an ever-changing market landscape.

Investment in Electrification

Mazda's commitment to invest in electrification is significant, with plans to allocate approximately 1.5 trillion yen by 2030. This investment is strategically designed to enhance the company's capabilities in developing and producing electric vehicles while optimising costs.

Cost Reduction Strategies

• Optimisation of Battery Procurement: Instead of solely relying on in-house battery production, Mazda plans to collaborate with external partners, which is expected to halve the anticipated battery investment.
• Streamlined Development Processes: By leveraging existing resources, Mazda aims to reduce development costs by 40% and man-hours by 50% for its upcoming battery EVs.

Future-Proofing Production

The Lean Asset Strategy also involves using existing manufacturing facilities to produce both electric and traditional vehicles on the same production lines. This approach not only reduces initial capital investments but also shortens the time required to prepare for mass production.

Mazda Monozukuri Innovation

At the core of Mazda's operational strategy is the concept of "Monozukuri," which translates to "manufacturing" in Japanese. This philosophy emphasises craftsmanship and continuous improvement in production processes.

Evolution of Monozukuri

Mazda is advancing its Monozukuri practices through two key initiatives:

1. Mazda Monozukuri Innovation 1.0: This initiative focuses on enhancing efficiency while maintaining flexibility in production. By employing a mixed-production method, Mazda can adapt to fluctuations in demand while optimising resource use.
2. Mazda Monozukuri Innovation 2.0: Building on the first initiative, this evolution incorporates advanced technologies such as AI to improve the development and production processes further. This approach enables Mazda to manage the entire vehicle modelling process more effectively.

The Role of SKYACTIV Technology

Mazda's commitment to innovation is exemplified by its SKYACTIV technology, which encompasses a range of engines and platforms designed to improve fuel efficiency and reduce emissions.

The SKYACTIV-Z engine, set to launch in the upcoming Mazda CX-5, is engineered to comply with stringent emissions regulations, including Euro 7 standards. This advanced combustion technology balances performance with environmental responsibility.