TOKYO — Troubled Mazda Motor Corp. managed to narrow its group net loss for its past fiscal year, but industry sources said the company, one of Japan's five biggest auto makers, may be too optimistic about its recovery this year.
Mazda, 24.54% owned by Ford Motor Co., announced Friday that it posted a group net loss of $484 million in the year ended March 31--an improvement from a loss of $576 million in 1993-94.
It expects the loss to shrink dramatically to $58.8 million in 1995-96, spokesman Tetsu Owari said.
"Our U.S. unit AAI turned into the black in calendar 1994 after being in the red in 1993," he said. "That contributed to the narrowed loss in 1994-95."
The parent company's efforts to slash costs in 1994-95 also helped cut the group loss, Owari said.
AutoAlliance International Inc. (AAI), a 50-50 venture between Mazda and Ford in Flatrock, Mich., produced 247,000 cars in 1994, up from 219,000 a year earlier, Owari said. AAI makes Mazda's MX-6 and 626 models and Ford's Probe.