The Delay of FAW-Mazda's New Model Leads to Crisis of Confidence

It is said CX-7 and ATENZA will be delayed for 2 months. This means another blanket period of new model for FAW-Mazda. More seriously, it is reported the reason why delays again is the expiration of the agreement of transfer. This news caused a lot of attention last week. The source said the 10-year technical transfer agreement had expired so 2 new models were not qualified to be released. For this, relevant principals of FAW-Mazda and Mazda have no information to post. Our reporter found there were no plan for new models indeed this year. Mr. Jia, senior auto-industry analyst, said, "The negotiation between FAW and Mazda affects the release of new models."

In fact, this is not first time for FAW-Mazda to delay the release. This has caused panic emotion of distributors. Most distributors said it was difficult to profit without new models. Some distributors said they would consider to quit if there still was no news for new models. So the release of CX-7 and ATENZA is quite important for manufacturer and distributors because these 2 models are potential to compete in mainstream market. FAW-Mazda has prepared a lot for the release but the delay erases all the preparation. More badly, some distributors have decided to quit and others are just hesitating. There has been crisis of confidence in the distributors of FAW-Mazda.