The Millennium Plan

The Millennium Plan, announced in November 2000, is designed to strengthen Mazda's business structure and its long-term competitive position through growth, based on the following elements:
- A strong brand
- New product launches
- Strengthened distribution
- Proactive actions to reform and restructure our business
- An enhanced and clear role in the Ford Motor Company group
- Developing our people to their maximum potential.

Mazda has already begun to implement the Millennium Plan. In FY2000, Mazda announced plans to begin production of its next-generation small car for Europe at a Ford plant in Valencia, Spain. The company also reduced its employment of indirect workers by more than 2,200 through an Early Retirement Special Program in March and announced that it will close its Ujina 2 assembly plant in Hiroshima by September 2001.

In FY2001, Mazda aims to improve customer satisfaction through various initiatives, assume control of distribution in selected markets in Europe, and continue to strengthen distribution in Japan and the U.S. We will begin production late in this fiscal year of the first of a new generation of products that fully embodies the Mazda brand DNA, including the first application in a Mazda vehicle of a new family of large I4 engines. We also will adjust domestic production capacity, continue to progress the development of other major product actions, prepare for the start of production in Europe in 2003, and strengthen employee development.

All members of the Mazda team are committed to delivering our business targets for FY2001 to ensure we continue to progress along a path of profitable growth as envisaged in the Millennium Plan.

Note:
- Dollar equivalents compiled at 124 yen to the dollar (Exchange rate prevailing on March 30, 2001).
- Euro equivalents compiled at 109 yen to the euro (Exchange rate prevailing on March 30, 2001).