AN Tiecheng: FAW Discussing With Mazda for Comprehensive Cooperation

FAW- Mazda, which just finish its blank year has messaged out that “both sides will found joint venture”. AN Tiecheng answer reporters for the message “FAW and Mazda are discussing about the cooperation next step.”

An insider of FAW- Mazda has footnoted the explain that “now everybody knows that joint venture found is the best choice, but government of China is very strict onto new joint venture approve. We talk about the cooperation opportunity of joint venture, but it definitely not the only choice.”

In year 2003, FAW and Mazda initial their first cooperation. Mazda 6 is assembled in FAW workshop. Meanwhile, Mazda introduces technology to FAW for its passenger car Benteng B70. And then both side has found FAW- Mazda Automobile Sales Co Ltd for imported and China made Mazda sales.

At first beginning, FAW- Mazda is the only sales channel of Mazda in China. However, Mazda then leaves FAW, and meanwhile Changan- Mazda found joint venture comprehensively. FAW loses its advantage for key product introducing as well.

In the past 10 years, FAW- Mazda says comprehensive cooperate several time. As early as year 2005, FAW Group, FAW Passenger Car and Japanese Mazda have found FAW- Mazda sales company. Senior management of Japanese part says in public several times that their look forwards to deeper cooperate with FAW. However, FAW has not answered or declare clearly as Mazda. The company agrees to improve share of Mazda in sales company, but has not promise anything about joint venture. Chinese part senior management even says that “there is not just one way for deeper cooperation.”

FAW- Mazda now involves into deep reactive situation. There is no new product launch market for 3 years, and media guess that cooperation between FAW- Mazda has almost expired. Some dealers even quit sales network of FAW- Mazda.