Mazda to Build Engine Plant in Thailand

Mazda Motor Corp. plans to open an engine plant in Thailand's Chonburi province at the end of 2015 to make 1.5-liter diesels for its all-new Mazda2 small car assembled there.

The facility will have initial capacity to build 30,000 of the company's new Skyactiv-D "clean" diesels per year. The company introduced its suite of Skyactiv technologies which encompass the powertrain, chassis and body last year.

Mazda is betting the system will enable it to hike its average fuel economy 30% by the end of 2015. The company already produces Skyactiv engines in China, Japan and Mexico. It expects 85% of its worldwide sales volume will feature Skyactiv vehicles by March 2016.

The company's redesigned Mazda2 model has been approved by Thailand's Eco-Car program, which grants tax incentives for small, efficient cars powered by engines displacing no more than 1.3 liters (gasoline) or 1.5 liters (diesel).

Qualifying cars must meet Euro 5 emission standards, deliver fuel economy of 4.3 liters per 100 km (55 mpg) and emit no more than 100 grams per kilometer of carbon dioxide.