Mazda North American CEO Resigns

Mazda North American Operations President and Chief Executive Charlie Hughes has resigned in the third leadership change in six years at the slumping automaker controlled by Ford Motor Co.

Mazda’s North American operations are based in Irvine. Hughes’ departure comes as the company begins a major new-product offensive with hopes of overcoming a sales decline that began several years ago.

Insiders say that Hughes’ departure -- announced to Mazda employees Thursday -- had not been planned and that the company has not lined up a replacement.

John Mendel, a former Ford of Britain executive who joined Mazda’s U.S. headquarters 14 months ago, will step in as acting president, a company spokesman said. Mendel now is executive vice president for sales, marketing, parts and service.

Mazda, once the No. 4 Asian import in the U.S. behind Toyota, Honda and Nissan, has been overtaken by Mitsubishi and Hyundai in recent years. Mazda’s U.S. sales in 2002 slipped 4.2%, and its market share last year dropped to 1.5% from 1.6% in 2001.

Hughes, who had come out of retirement in October 2000 to take the top job at Mazda North American, had been a top executive with Land Rover North America when it was owned by Germany’s BMW. He retired from Land Rover in 1999.

Mazda North American isn’t the only part of the company with a revolving door. The company’s Japanese parent, Mazda Motor Corp., has had four presidents in the last four years as Ford, which holds a controlling stake, attempts to revitalize Mazda.

Ford has selected Mazda to develop a line of four-cylinder engines that will be used by a variety of Ford brands and has approved an aggressive new- product program as well. Mazda is scheduled to introduce eight new or redesigned vehicles in Japan, seven in North America and four in Europe over the next two years, said Jim Padilla, Ford’s executive vice president.