FAW- Mazda Shall Joint Venture Totally, Waiting for Approve by Ministry

On 9 April, the new generation Atenza, which has already delayed 1 year, is officially rolled off line. It plans to launch market this May. CX-7, which breaks schedule as well, shall launch market this July as well. Mazda has finallywelcomed its new productswith 3 years vacuum period. QIN Huanming who is vice general manager of FAW and executive director of FAW Volkswagen, AN Tiecheng who is general manager of FAW and Masatoshi who is executive director of Mazda have attended the conference, which makes Atenza rollout ceremony very solemn.

Just server days before Atenza rollout, it is said that FAW Mazda shall be full-fledged joint venture inside the company. Media wants to confirm the message. A Tiecheng says very tactical that “FAW and Mazda contact about the further cooperation in the future.”

But an insider says confirmed that “FAW Mazda indeed will be full-fledged joint venture. In the future, joint venture will work within the framework of FAW as well. The plan has submitted already, which under progress of ministry approve.” FAW Mazda, which has entered Chinese market for dozen years, has no difference with other joint venture on names. But its full name is FAW Mazda Automobile Sales Company, which is only a joint venture into sales area. Car manufacture unit has not progress for a long while. All modes are outsourced to FAW.

At present, FAW has changed its opinion onto joint venture. The company was not interesting into joint venture before. With the interest game negotiation around new generation mode and technology of Mazda moving forwards, the balance inclines to Mazda side. FAW Group has not commented for cooperation with Mazda, but it says it is possible for FAW Mazda married.

In the past 10 years, FAW Mazda has said full- fledged joint venture for severaltimes. As early as year 2005, FAW Group, FAW passenger car has found joint venture with Japanese Mazda of FAW Mazda sales company. Kiyoshi Ozaki, who was executive director of Mazda, told media that “both of us negotiate about the manufacture cooperation.”Up to year 2007, Takashi Yamanouchi, who was president and CEO of Mazda told media “wish cooperation with FAW with Manufacture move further.”

However, FAW opinion on joint venture seems equivocation. Senior management of FAW answers outside with“both of us are under negotiation of the term” since year 2005. With the requirement of Mazda, FAW has agreed to increase share percentage of Mazda of their sales joint venture. But FAW has not declared clearly about cooperation update.