
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, August 25, 1993                   TAG: 9308250046
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: The New York Times
DATELINE: DETROIT                                LENGTH: Short

YEN DRIVES MAZDA TO STAFF CUTBACKS

In another executive shake-up reflecting the soaring yen and hard times for Japan's automakers, Mazda Motor Corp. dismissed its top American executive Tuesday and said it would reduce its headquarters staff in Irvine, Calif., about 35 percent.

Clark J. Vitulli, who left Chrysler Corp. in 1989 to run Mazda's American sales operations, was let go along with four other top executives. Vitulli's title, executive vice president of operations, was eliminated, Mazda said.

Mazda reorganized its American staff only six months ago, demoting Vitulli to executive vice president from chief operating officer. Mazda's corporate staff of about 500 will be reduced by 175.

The company said the job cuts were being made to reduce costs and to focus efforts on the field sales and service organization, which works directly with dealers.

Other Japanese automakers have cut back in the United States. In February, Nissan Motor Co. dismissed Thomas D. Mignanelli, a former Ford Motor Co. executive who had run Nissan's American sales organization.

Earlier this month, Fuji Heavy Industries cut employment at the headquarters of Subaru of America, a subsidiary, in Cherry Hill, N.J. Subaru had previously replaced its top American executive.

Because of a stronger yen, which makes Japanese products more expensive overseas, Mazda and other Japanese automakers have been forced to raise prices far in excess of increases by American automakers. Sales have dropped as a result. In Mazda's case, vehicle sales are down 5 percent so far this year from last year.

by CNB