In the late 1980s, the Japanese economy experienced a significant boom. This was largely due to the Plaza Accord signed by the U.S., Japan, Germany, France, and the U.K., which caused their currencies to gain strength against the dollar. The resulting asset price bubble led to prosperity in various sectors, including the automotive industry. Automakers like Toyota, Honda, and Nissan all launched luxury divisions that have since become well-known names.

• Prior to the economic boom, Japanese car sales increased from a 6.5 percent market share in 1973 to over 20 percent in 1980, largely due to the U.S. oil crisis.
• Japan had to sign the “Voluntary Export Restraint” agreement to slow down their exports to the U.S.

Mazda, known for its legendary Miata, RX sports cars, and current CX models, also launched its own luxury division during this time. The division, called Amati, aimed to establish Mazda as a renowned luxury automaker. However, Mazda faced challenges, and the economic downturn prevented the Amati brand from taking off. Despite its potential, Amati’s failure affected Mazda’s trajectory in the luxury car market.

Amati Was Launched In 1991

Mazda saw the success of other Japanese luxury divisions and wanted to be part of that market. The Amati brand was formed to take advantage of the economic surge and establish Mazda as a competitor to German automakers. Mazda announced Amati in 1991, around the same time they won the 24-hours of Le Mans race with the 787B racecar. The Amati 1000, under development at that time, was intended to be the flagship vehicle. Mazda even opened an office in Irvine, California for research and development. However, Mazda was venturing into the luxury car market without a solid backup plan or previous experience in this sector. Before Amati, Mazda was not considered in the same league as Toyota or Honda.

Mazda’s history involves surviving the Hiroshima bombing in 1945, avoiding a merger with Toyota in the 1960s, and navigating the 1973 oil crisis. During the 1980s, Mazda faced financial struggles and employees even had to clean up after work due to budget constraints. This work condition was also observed by employees in California. However, Mazda aimed to take on luxury brands like Lexus, Mercedes, and BMW, and had signed up 67 U.S. dealers to sell the upcoming Amati.

The Amati 1000 Was Going To Have A V-12 Engine Not A W-12

Mazda’s prototype W-12 engine

Early speculations about the Amati suggested it would have a W-12 engine. In 1989, Mazda showcased a compact four-liter W-12 engine at the Tokyo Motor Show. However, the Amati was not equipped with a W-12 engine. The W-12 design, which consisted of three banks of inline-four engines, had never been used before and was complicated but compact.

Mazda planned to use an existing V-6 engine known as the K-series in the Amati. They intended to utilize the internals of the K-series engine in a new cylinder block designed for the Amati. This approach saved Mazda development costs as the V-6 engine was already well-built and compact.

Economic Bust: Amati’s Implosion

Unconfirmed images of the Amati 1000

Developing a luxury car requires substantial investment. Lexus, for example, spent over $1 billion to develop the LS, and Mercedes exceeded its budget to maintain a high standard for the new S-class. Mazda, with a smaller budget, had already spent over $400 million on Amati. Unfortunately, Mazda’s timing couldn’t have been worse. The Japanese economic bubble burst in 1994, the same year Amati was set to go on sale, leading to the downfall of the luxury brand. Mazda, like many other sectors, faced the impact of the burst and the subsequent long-term recession known as “the lost decade.” Unlike established luxury automakers with greater capital, Mazda struggled due to its limited financial resources.

Amati’s President, Dick Colliver, joined Honda and took the learnings from Amati to Honda’s Acura division. This may have contributed to the success of Acura vehicles in the luxury car market. While brands like Lexus, Acura, and Infiniti continue to thrive, Mazda shut down the Amati division before it even launched its first car.

Factors contributing to Amati’s failure:

• Bad timing: Launching a luxury brand just before an economic disaster.
• Capital Deficit: Limited financial resources compared to other established luxury brands.
• Poor Management: Mazda already struggled with managing its existing sub-brands.

Mazda Also Had Other Luxury Brands

Rolling shot of a Mazda Xedos 9

Mazda Had Other Sub-Brands And Partnerships To Keep Them Afloat

Mazda also ventured into other luxury brands. Moreover, they had a division dedicated to selling Ford vehicles. However, these sub-brands and partnerships did not fare well, and the cars produced under these brands did not uphold Mazda’s reputation. Mazda experimented with various car types, including luxury cars, Kei cars, luxury sports cars, and mid-engine cars. Ultimately, Mazda had to shut down most of its subsidiary brands by 1999.

Today, Mazda is known for producing quality cars, particularly the CX models and the enduring popularity of the Miata as a fun, lightweight sports car. Although Mazda could potentially launch a luxury brand now with its current success, the memory of Amati remains bitter, and Mazda denies its existence. All documentation related to the luxury brand has been destroyed or concealed, leaving no official photos or brochures. It’s as if the Amati brand never existed. The failure of Amati continues to leave us wondering what Mazda’s position would be in the market if it had succeeded.