Changan Ford Mazda cuts 2008 sales target by half

Shanghai, August 27 (Gasgoo.com) Mazda will lower its annual sales target in China to roughly 60,000 units from the previous goal of 120,000 units set earlier this year, announced  Changan Ford Mazda Automobile Co in the company’s mid-year business conference with 95 domestic Mazda dealers on August 27, reported 21st Century Business Herald today.

"We haven’t ceased production,” Mazda’s Nanjing plant declined to tell further details. However, according to sources from Changan Ford Mazda Engine Co., the company began to halt part of production lines in July and will have ceased all production lines in August and September except for some maintenance technician’s work.

At the beginning of this year, Changan Ford Mazda set its sales target for 2008 at 120,000 units, but the first half output and sales of Mazda2 and Mazda3 totaled less than 25,000 units. Mazda 6 has its lowest price close to Mazda 3’ highest price, and the imported Mazda 3 also sells at the same price with Chinese-produced Mazda 3, which makes the future of Mazda 3 unpredictable in China.

Dealers of Changan Mazda felt more discouraged as the Mazda 2 suffered dwindling market share due to the price cut of cars of its kind. The new Mazda 3 would be introduced to China in 2010, and this, plus economic slowdown, led to the lack of consumer confidence.