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The representatives of Mazda, the Japanese car manufacturer with headquarters in Hiroshima, denied a newspaper report regarding its plan to erect the company's second plant in North America. It is worth mentioning that a newspaper released a report according to which Mazda had scrapped plans to construct a second car plant in North America and that the idea came as a result of the company's low demand in the region.

According to the Japanese automobile manufacturer it currently doesn't have any plans to build a second car factory. Mazda already has one car-making facility working in Michigan.

One of the leading business newspapers in the land of the rising sun, Nikkei, which covers corporate and economic information from Japan and Asia, wrote that Mazda had plans to start building a second North American auto factory in the early 2010. However, the newspaper wrote, the company decided to ditch the plan because of a prolonged decrease on the American auto market. The newspaper did not cite any of its sources; neither did it mention the place where the company had plans to erect its new factory. The representative of the Japanese automaker stated that the newspaper's report "was not based on fact."

"As outlined in our midterm Mazda Advancement Plan, announced in March 2007, Mazda has no plans to establish a new vehicle production facility in North America," said the Japanese car manufacturer in its statement.

It's worth noting that currently Mazda is the fourth biggest car manufacturer in Japan, being able to show a significant increase in profit in the April-June quarter. As an affiliate of Ford Motor Co, Mazda represents a successful spot for Ford, which registered a critical downturn on the American market, losing $11 billion in 2007.

The company's officials denied the speculations regarding the fact that Ford may file for bankruptcy. The price of Ford's stock showed the biggest fall in 25 years. Back in 1979 Ford was able to form a capital alliance with Mazda, obtaining a 25 percent stake. In 1996 the stake rose up to 33.4 percent.

(We recommend to read about the Top Cars - 2008 ).

Besides the Michigan plant, the Japanese company has two automobile factories running in China and one plant in Thailand. According to Mazda representatives, all of the company's oversees production facilities are operated together with Ford.