Mazda Motor is planning to temporarily halt in the production of its CX-50 sport utility vehicles (SUV) intended for the Canadian market, reported Bloomberg citing a spokesperson.
The move comes amid heightened trade tensions, including a 25% tariff imposed by the US on imported cars and parts, and retaliatory duties from Canada. These measures have created challenges for foreign carmakers operating in North America.
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Mazda’s production pause at the Alabama plant will be effective from 12 May 2025, with the company continuing to produce the CX-50 for other markets. The decision was first reported by Nikkei.
The CX-50 compact crossover SUV represents approximately 15% of Mazda’s total passenger vehicle sales in Canada, which amounted to about 72,000 units in 2024.
Earlier in the week, Trump suggested the possibility of a temporary exemption for the auto industry from these tariffs but did not provide details on the duration of such a reprieve.
The tariffs on completed vehicles came into effect on 3 April 2025, with those on automotive parts scheduled to start 30 days later.
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By GlobalDataMazda North American Operations’ (MNAO) vehicle sales for March 2025 reached a total of 43,097 units, marking a 16.1% increase over same period previous year.
Mazda Canada (MCI) reported 42.9% increase in March sales, totalling 7,237 vehicles. Its year-to-date figures also reflected a 21.5% growth.
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