Changan-Ford-Mazda JV geared up for restructuring

Shanghai, May 7 (Gasgoo.com) The three partners of Changan Ford Mazda Automobile Co. are awaiting government approval for a restructuring after rumors resurfaced about a possible termination of the three-way joint venture, Reuters reported today.

One likely scenario is that the joint venture will be split into two 50-50 venture between China's Changan Auto and its two foreign partners, said industry analysts.

In 2008, Ford Motor cut its controlling one-third stake in Mazda Motor to 13% to free up cash and since then the future of the Changan-Ford-Mazda partnership had been in focus, with some media reports saying that Mazda would likely pull out of the venture.

Mazda has not commented on such a possibility but said the partners "are constantly assessing new opportunities to further optimize our business structure and operations ...." and had submitted the JV's restructuring plan to the government for regulatory approval.

Changan-Ford-Mazda is planning to expand its 160,000-unit plant in the eastern city of Nanjing, where Mazda 3, previously made in the company's Chongqing plant, will be manufactured later this year.

Mazda joined Ford's car-making venture with Changan in 2006, with its Mazda 2 and Mazda 3 compact cars thereafter made along with Ford's Focus, Fiesta, Mondeo, S-MAX, Volvo S40 and S80 models.