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FAW Mazda's business said to merge with Changan Mazda

Monika From Gasgoo| April 06 , 2021

Shanghai (Gasgoo)- FAW Group, Mazda and Changan Automobile are in talks with the attempt to make the business of FAW Mazda Motor Sales Co. Ltd. (FMSC) merge with that of Changan Mazda, according to a local media outlet.

FAW Mazda Changan Mazda merger, China automotive news

Mazda CX-4; photo credit: FAW-Mazda

Aside from the combination on the level of dealership, the production of vehicle models like the Atenza will be taken over by Changan Mazda as well, and the restructuring is expected to be finished before June 2021, said the media channel, citing sources briefed on the matter.

After being reached for comment, FMSC said it has not received any relevant information yet, while Changan Mazda said it has still been unaware of this matter.

The collaboration between FAW Group and Mazda can date back to 2003, while both parties only built a joint venture dedicated to sales business in 2005, rather than founding a joint venture working on both sales and production. Up until now, FAW Besturn has served as the contract manufacturer of the vehicles sold by FMSC after being authorized by Mazda.

If the information was formally confirmed by all parties later, the Japanese automaker's China business will be fully operated by Changan Mazda in the future.

Mazda's annual deliveries in China for the first time surpassed 300,000 units in 2017, while afterwards went downward year by year. In 2020, the automaker's China deliveries reached 214,575 units, sliding 5.8% from the year-ago period, while plunging 30.7% compared to 2017. Changan Mazda logged a year-on-year growth of 0.2% by delivering 77,907 vehicles last year, while FAW-Mazda faced a decline of 14.8%, which directly led to the drop in overall Mazda China sales.

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