For many manufacturers, sports cars tend to be low-profit items. Often viewed as loss leaders, these vehicles draw customers into showrooms and generate excitement for the brand, ultimately aimed at boosting sales of more practical models. However, Mazda has consistently produced and sold the MX-5 Miata every model year since its debut in 1989. Emblematic of the philosophy that big fun can come at a low cost, the Miata has secured a place in amateur racing circuits worldwide.
A fundamental reality of motorsport—something well known to many fans and participants alike—is the occurrence of crashes. Mazda, the manufacturer of one of the most raced cars in history, is fully aware of this fact. They have incorporated the financial repercussions of these incidents into their business strategy whenever the MX-5 undergoes a costly redesign.
As outlined in a report by Automotive News and emphasized by Road & Track, Mazda factored in the income generated from replacement part sales to amateur racers who have damaged their Miatas into the justification for the car’s continued production. David Undercoffler of AutoNews notes, “When Mazda’s accountants evaluate the financial justification for another Miata generation, they account for the consistent need for parts, which strengthens the car’s case.”
Robert Davis, Mazda’s senior vice president for special assignments, explains, “The program managers in our organization grasp the complete business landscape. They aim to assess it from the beginning, so while the sales volume of the cars may be lower, they can anticipate a certain number of parts sales over the next six to eight years.”
Auto racing, even at the amateur level, puts significant strain on the vehicles involved. With enough encounters on the track, an MX-5 Cup car could have undergone so many part replacements that it might as well be considered two separate cars. Some accountant in Hiroshima is banking on this reality.
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