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Mazda says N.American chief to step down

TOKYO, Feb 28 (Reuters) - Japan's fifth-largest automaker, Mazda Motor Corp, said on Friday that the head of its North American operations will step down effective March 1.

A Mazda spokesman in Tokyo declined to disclose the reasons for the unexpected move.

But he said the decision was made by the Board of Directors and relayed to Charlie Hughes, the president and chief executive officer of Mazda North American Operations, based in Irvine, California.

John Mendel, executive vice president of sales, marketing and parts, will be acting president until a permanent replacement is found, he said.

North America has been a weak spot for Mazda, owned one-third by Ford Motor Co , and was the only region to post an operating loss in the business half year to September, mainly due to the absence of new models.

But Mazda is aiming to turn the business around through new models such as the Mazda6 and RX-8 coupe. With a third model due out in the autumn, the automaker is aiming to sell 300,000 units in the United States this calendar year, up 15 percent from 2002.

Hughes, who turns 58 Sunday, had been pulled out of retirement in October 2000 to lead Mazda's North American operations. Previously, he had headed Land Rover of North America after a brief stint at Volkswagen of North America.