Mazda Says Reports It Will Sell Cars to Israel Are ‘premature’

When it comes to selling cars in Israel, Mazda has apparently decided to take a back seat to Toyota and Nissan.

Both Toyota Motor Corp. and Nissan Motor Corp. have announced in recent weeks that they are ready to begin selling cars to the Jewish state, after years of refusing to do so.

But Mazda says news reports that it has agreed to do the same are “premature.”

Al Goldberg, a Mazda Motor Corp, spokesman in Los Angeles, said Monday that the Hiroshima-based company is only “studying” the idea. “We’ve not made a final decision,” he said.

The Kyodo News Service, quoting industry sources, reported that Mazda would be selling the cars to Israel this year.

And Elan Steinberg, executive director of the World Jewish Congress, said Mazda officials told him last Friday that the company would sell 2,000 to 3,000 cars in Israel during 1991.

“I don’t know whether they’re going to” actually sell the cars in Israel, Steinberg said. “I can only say that they’ve told me so.”

“Mazda has been conducting an economic study to determine the feasibility of marketing its products in Israel,” the company said in a statement read by Goldberg.

“As has been the case in similar situations when it considers a new market, Mazda’s final decision and announcement of a plan will be made only after the completion of negotiations regarding the establishment of a satisfactory distributor and dealer body.”

“Our decision will be based on economic merit only,” the company said, “without regard to boycott considerations.”

That is consistent with statements made by other Japanese companies that have refused to do business in Israel. They deny they are complying with the Arab League economic boycott of Israel and usually say that Israel is too small a market to invest in.

But Toyota and Nissan have apparently decided that the size of the Israeli market is now worth the bother. Nissan would reportedly sell 4,000 to 5,000 cars in Israel.

And Toyota plans to sell 5,000 four-door Corollas in Israel during 1992, according to Tim Andree, manager for external affairs at Toyota’s North American headquarters.

Andree said that since the company’s announcement, Toyota has received “absolutely no comments whatsoever” from the Damascus-based Arab Central Boycott. Office or Arab governments.

“I don’t think we’re concerned in any way” about a backlash, he said. “We expect to do business where it’s profitable for us, and we’ve identified the Israeli market” as such, he said.