Mazda Motor partnered with Nippon Steel to redesign production processes for its latest CX-5 crossover, cutting vehicle weight by 10% while maintaining structural integrity—part of an ambitious plan to reduce costs by ¥100 billion ($657 million) as the automaker grapples with rising material prices and supply chain pressures.
The collaboration, announced Wednesday, involved Nippon Steel engineers participating from the earliest design phases of the vehicle unveiled in July. This allowed the steelmaker to recommend materials and adjust procurement methods, according to the companies. The approach enabled Mazda to select a Nippon Steel plant closer to its assembly facility, which the automaker said would trim transportation expenses and carbon emissions.
Mazda cited the partnership’s incorporation of Nippon Steel’s advanced steel concepts and analytical tools as key to achieving the weight reduction without compromising safety standards. The companies plan to extend the arrangement across additional models.
The Japanese automaker is pursuing ¥200 billion in combined cost cuts and efficiency gains through 2030, a target it outlined as part of broader restructuring efforts. Supply chain optimization has become critical as manufacturers navigate geopolitical uncertainties and fluctuating raw material costs.
Whether these production changes translate into competitive pricing advantages for consumers remains uncertain, as Mazda has not disclosed how much of the savings will be passed through to buyers.
