FAW’s Mazda business unit formally begins operation

Shanghai (Gasgoo)- FAW Group's independent business unit set for Mazda brand officially started operation on June 1, and it will take over the whole operational businesses of the Sino-Japanese brand from FAW Car Co., Ltd, according to the Chinese state-owned automaker.

In the meantime, Mazda's collaborative entity in FAW Group also changed from FAW Car to China First Automobile Co.,Ltd., a subsidiary 99.62% owned by FAW Group.

(Mazda6 Atenza, photo source: FAW-Mazda)

FAW Group announced on May 11 the internal structural adjustment that would put FAW-Mazda at the same administrative level as that of FAW-Volkswagen and FAW-Toyota. The fifteen-year-old FAW Mazda was in nature a joint sales company between FAW Car and Mazda, while the former also serve a contract manufacturer. Now, under the group's direct leadership, FAW-Mazda is expected to grow faster by virtue of higher management efficiency, more autonomy in decision making, stronger control of production quality and less pressure in gaining short-term profits.

Meanwhile, Yang Dayong, former deputy general manager of FAW Car, has been named as the head of FAW's Mazda business unit.

However, there are also voices against the abovementioned viewpoint. Some industrial insiders consider that the independent operation is hard to swiftly boost FAW-Mazda's sales as it is still plagued by its insubstantial product lineup, slow roll-out of new models and weaker price competitiveness.

In May, FAW-Mazda saw its deliveries and wholesale volume reach 10,314 units and 10,009 units respectively, according to FAW Group. Besides, it also achieved all operational targets set for the first five months.