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MEXICO CITY – Mazda Motor Corporation today announced that it will begin selling vehicles in Mexico under a newly formed company, “Mazda Motor de Mexico.” Vehicles will be sold through a comprehensive stand-alone dealer network and backed up by a multi-national management team, reporting both to Mazda’s global headquarters in Hiroshima, Japan and to its North American headquarters in Irvine, Calif.

Mazda’s initial sales launch in Mexico will focus on the country’s three largest metropolitan areas, including Guadalajara, Monterrey and Mexico City, and will be comprised of the RX-8 sportscar, subcompact MAZDA3 in 4-Door and 5-Door form, and midsize MAZDA6 Sports Sedan.

The company plans to begin sales operations with five stand-alone showrooms. More information regarding dealerships and sales volumes will be the subject of future announcements.

“Today’s announcement is proof of the importance of the Mexican consumer to Mazda as a global company, and the critical role that Mexico will play in Mazda’s future,” said Hisakazu Imaki, president and CEO of Mazda Motor Corporation. “The spirit of success is alive and well at Mazda in Japan and elsewhere in the world, and I have every confidence that Mexico will soon become a shining star in our network.”

With a free trade agreement between Japan and Mexico scheduled for implementation in spring of 2005, Mazda will enter the Mexican market free of import tariffs. Prior to the free trade agreement’s ratification, Japanese automakers without a factory presence in Mexico were subject to heavy taxes on imported vehicles, limiting consumers’ choices.

“We have looked for many years at what the Mexican market had in store for a company like Mazda, and we saw many opportunities that will benefit both Mexico and Mazda,” said Leopoldo ‘Polo’ Orellana, director of Mazda Motor de Mexico. “We feel the timing and marketplace have converged to create an environment in Mexico that will be conducive to Mazda’s sales presence.”

Headquartered in Hiroshima, Japan, Mazda currently sells more than a million cars and trucks each year in nearly 130 countries around the world.

The company’s consolidated revenue for this fiscal year, ending March 2005, will top two trillion yen, and the company expects to turn a fiscal-year profit of 78 billion yen for its best-ever result. The business outlook at Mazda is brighter than ever before, led entirely by the strongest product offerings in the company’s history.

Mazda Motor de Mexico is responsible for the sales and marketing, consumer parts and service support of Mazda vehicles in Mexico. Mazda Motor de Mexico is headquartered in Mexico City.