FAW to make Mazda 8 MPV next year

Shanghai, August 27 (Gasgoo.com) FAW Car Corp, a subsidiary of China FAW Group Corporation, said it would invest 293 million yuan (US$43.2 million) to locally produce Mazda 8 MPVs (multi-purpose vehicles), the 21st Century Business Herald reported.

The company announced later last week it will purchase new equipment and upgrade existing assembly lines in a plant in Changchun to give it a capacity of 20,000 MPVs a year in 2009.

Currently the Mazda 8 MPV is marketed only in Japan and Hong Kong. The model has twin sliding doors for access to the rear, and can be opened electrically by the driver. It seats 7 and is powered by the same L3-VDT in the Mazda CX7.

FAW Car Co also makes the Mazda6 sedan and sports car under a licensing agreement as well as the Mazda6 wagon. Although China's mid-sized sedan market actually shrank in the first half, the Mazda 6 sold more than 34,000 units in the period, a growth of 45 percent year on year. 

FAW's expansion plan came after FAW Car reported its half-year earnings had more than tripled to 506 million yuan, due to sustained growth of the overall auto market and cost reductions. Its sales revenue increased by 76.16 percent to 10.4 billion yuan for the first six months from a year earlier after it sold 59,300 vehicles during the period — an increase of 75 percent.

FAW to locally build Mazda 8 MPV next year