Two years ago Mazda seemed to be a brand lacking in direction, with a dull product line-up (MX-5 aside) and little presence in the fleet market. But a change of ownership with Mazda Motors UK – a division of Mazda Motors Europe – running the company set in motion a strengthening of its fleet and dealer operations and the promise of a raft of new models.
Eighteen months on from Mazda's fresh start, and with the Mazda6 scooping the Arval PHH-sponsored Best Upper-Medium Car title at the 2003 Fleet News Awards, fleets can expect the transformation of the rest of the range over the next few years. The Mazda6 won the award through low overall running costs and providing unrivalled driver appeal for the sector. Mazda's fleet and remarketing director Jeremy Thomson hopes forthcoming new models will be equally well received.
He said: 'Our Fleet News Award is the highlight of an extraordinary 18 months in the history of 'new' Mazda.
'To have won such a significant award against very strong competition is gratifying in itself, but for it to have done so at the recommendation of a panel of judges that represent some of the most experienced in the fleet industry is a huge accolade for the Mazda6.'
He added: 'From launch we have been very aware of the strong products in the upper-medium segment and knew the Mazda6 would have to be an outstanding car to compete.
'By launching an all-new fleet car that combines very attractive pricing with compelling wholelife costs and residual values, we are confident we compete with the very best on a pragmatic fleet cost basis and this award is a hugely important endorsement from recognised experts.'
Thomson is hoping the success can be repeated with new models such as next year's Mazda3 lower-medium challenger and the new Mazda2 supermini, while the new RX-8 due this summer is expected to appeal to user-choosers, offering a blend of four seat practicality, high performance and dynamic looks.
'The RX-8 is a unique concept, being a four-door, four-seater,' said Thomson. 'It won't be included on every choice list, but it can be chosen for practical reasons and is an attractive and motivational car to offer. It runs contrary to traditional views of what a sports car is and if it can be competitive on wholelife costs it would justify its inclusion in certain fleets.'
So far, Mazda's latest products have had a significant impact on fleet business for the company, but other initiatives are being used to ensure the momentum can be maintained.
The strength of Mazda's fleet sales is also evident in the company's overall sales figures. Thomson said: 'Year-to-date, our fleet business is up 100% on 2002 and Mazda is up 25% as a whole, so we can see that fleet is making a significant contribution to that growth.
'Our field team is now in place bar one person, our business centre is up and running and we are in a process of product-driven growth. Since September (when all body styles and engine variants of the Mazda6 were available) fleet business has been running at close to 30% of sales. This compares to just 4% of total sales in September 2001.
'The Mazda6 also has a 2.6% share of the medium car segment and this is with only limited daily rental volume through our deal with National Car Rental.'
Early Mazda6 models, while driving well and offering low list prices, were mediocre performers when it came to benefit-in-kind tax – the low P11d value was offset by relatively high emissions.
However, Mazda was allowed to have the cars re-assessed, and in most cases this resulted in lower tax ratings from the early cars and more competitive prospects from a personal taxation perspective.
Thomson said he wanted to focus on fleet decision-makers and develop relationships, perhaps with people without Mazdas on their fleets.
'Although we remain committed to contract hire and leasing companies, we want to build relationships with a considerable number of fleet managers this year,' he said. 'These relationships will be reinforced by Mazda dealers. We are introducing regional centres of excellence and these dealers will have close relationships with our field team, who will identify local opportunities for dealers.
'I believe every dealer is ultimately capable of transacting with fleets. It is like running two separate businesses – fleet and retail.There are many additional considerations in terms of structuring marketing towards local areas and gearing up aftersales towards fleet. We need to re-establish awareness the Mazda brand.'
The latest Mazda to hit the roads is the Mazda2, which is built at the same factory as the Ford Fiesta. However, despite shared engines and transmissions Mazda believes people will not think of it as a re-badged Ford.
The arrangement has seen Mazda gain access to the common rail 1.4-litre turbodiesel engine shared between Ford, Peugeot and Citroen. More common rail diesel engines, part of the joint development programme with Ford and PSA Peugeot-Citroen, will be launched later this year, including a 1.6 and a 2.0- litre.
New products such as the Mazda3 and RX-8 will be one way of catching the attention of potential customers over the next few years, and the Mazda6 has already brought in new customers.
Thomson said: 'We are delighted with the sales performance of the Mazda6. It has opened a lot of doors for us. We get more calls every day from fleets we haven't done business with before. Although we will never be a major player, we have established our credentials as a credible fleet player.'
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