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Mazda's July 2020 sales increase by 3.4% from a year ago

Masahiro Moro, Mazda chairman and CEO of Mazda's North American Operations, joins Yahoo Finance’s The First Trade with Alexis Christoforous and Brian Sozzi to discuss the company’s recent car sales, future outlook, centennial anniversary and much more

Video Transcript

BRIAN SOZZI: All right, let's switch gears from food to autos. Auto sales are on the rebound. In the month of July, Mazda saw a 3.4% increase in sales compared to the same time last year. Here to discuss is Masahiro Moro, Mazda Chairman and CEO of North America Operations, including the US, Canada, Mexico, and Colombia. Moro-san, good to see you this morning. Take us through why-- why do you think we're seeing or you're seeing a rebound in your business?

MASAHIRO MORO: Well, I think the everybody has suffered with the pandemic of COVID-19, but Mazda is now demonstrating our company DNA of resiliency in adversity and an ever-challenging spirit. And then we have a very, very good progress on the business in difficult time.

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ALEXIS CHRISTOFOROUS: Moro-san, I know that you-- you have this joint venture with Toyota. You're building a plant here in the US in Alabama. That's set to happen next year. And I know you're also investing, as many automakers are, heavily in electric vehicles and sort of next-generation autos.

Can you give us a-- a status update? How are things looking with that Toyota joint venture? And what's happening on the electric vehicle front?

MASAHIRO MORO: Sure, our plant in Alabama, I think construction and the people hiring is on track right now. Last several months, we have experienced some difficulties because of the impact of COVID-19, but team is fully energized and working through the difficulties and to find out, you know, new ways to get things done. So I believe it is on track and looking forward to further progress on the Alabama plant.

And, also, electric vehicle, we-- we launched Mazda's first brand new electric vehicle in European markets where CO2 requirement is very, very stringent. And we are now start launching those vehicles in other markets. And I'm looking forward to bringing that into the US market not in distant future. So we are on track.

BRIAN SOZZI: For those investors who may not be too familiar with Mazda, where-- what are your plans in the electric vehicle market?

MASAHIRO MORO: Well, our-- our current vehicle produced first is we call it MX-30, which is a little bit crossover type of pure electric vehicle, which is 100% Mazda-made pure electric vehicle and which is absolutely, unmistakably Mazda, fun to drive. So it is a high, high evaluation in European markets.

ALEXIS CHRISTOFOROUS: I know that you had to scale back your sales goals recently. I believe there was a goal to sell 1.8 million vehicles by 2024. How has that changed? And what are your new goals now?

MASAHIRO MORO: We are going to announce our mid-term plan this-- perhaps this fall. Our objective has not been changed, but, because of the COVID-19 impact, we are reevaluating our goal to be one year later. So we are investing-- continually investing our future technologies. And we are-- we are focusing on delivering brand value management and Mazda value to our customers.

BRIAN SOZZI: How have you had to redesign the dealership experience?

MASAHIRO MORO: That was awesome because, right now, we are-- we have been very working-- working very busy to build a next-generation of fully branded facility in USA. We have a plan to open 300 outlets by the mid-2020. We are now 140 new dealership opened. And the customer experience has been dramatically changed. Recently, JD Power announced the 2020 CSI. And we are very, very top line.

ALEXIS CHRISTOFOROUS: Moro-san, last year, you-- you rolled out the Mazda 3 subcompact, also the CX-30 SUV. Perhaps, demand was not as robust as-- as you had hoped. Do you think, looking back, that pricing was a little too ambitious there?

MASAHIRO MORO: Well, there are several feedbacks. And the Mazda 3 are a little bit difficult because of industry. The subsegment has been declined 40% in the last five years. So we are reevaluating that.

And the CX-30 is just spot on. And I think our market share is great, and we launched it this January. And, just July, we posted the best sales record on the CX-30. So those new-generation vehicles are high evaluation from our target customers. And we are looking forward to launching a high-powered version of the Mazda 3 soon.

BRIAN SOZZI: Moro-san, this-- this year marks the centennial anniversary for Mazda. What is a-- what do you think will define Mazda the next 15 years?

MASAHIRO MORO: Well, I think our-- a core value is to provide a vehicle, which is fun to drive to our target customers. That's not been changed. And the Mazda, as a small company, always try to bring a unique value to our particular customers. Technology will be changing over time, more electrification, but our core value of artful design, Japanese mastery, fun to drive, and our philosophy of, you know, human centricity will continue to be Mazda's unique philosophy and give-- give a big difference compared to mainstream competitors.

BRIAN SOZZI: All right, let's leave it there. Masahiro Moro, Mazda Chairman and CEO of North America Operations, including the US, Canada, Mexico, and Colombia, thanks so much for taking the time this morning.

MASAHIRO MORO: Thank you.