Mazda to be partial toward northern China JV

Mazda Motor Corp., which has two joint ventures in China, is planning to lean to its northern China venture FAW Mazda Motor Sales Co., Ltd., in an effort to stop sales drop in the country.

The carmaker's southern China venture Chang'an Ford Mazda Automobile Co., Ltd., which makes and sells Mazda2 and Mazda3, reported monthly sales of not more than 2,000 such cars presently, far less than its expectation. Besides, the carmaker has adjusted downward its 2008 fiscal year sales ending in March 2009 to 60,000 units from previous 110,000 units.

However, the stable growth of FAW Mazda Motor Sales excited the carmaker, which had planned to elevate its annual global sales from 1.36 million vehicles in 2007 to 1.6 million vehicles in 2010 and hoped to realize the increased sales in the Chinese market during the period.

The northern China venture's parent FAW Car Co., Ltd. undisclosed on August 22 a new investment plan that it would invest 300 million yuan in what was said as Mazda8, an MPV model, to combat Honda Odyssey and General Motor Buick GL8. A production capacity of 20,000 such cars will be formed in the Shenzhen-listed company.