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          BIZCHINA> Top Biz News
          Mazda boosts stake in FAW sales venture
          By Gong Zhengzheng and Zhang Ranran (China Daily)
          Updated: 2009-05-01 09:13

          Mazda boosts stake in FAW sales venture 

          A Mazda6 sedan on display at an auto exhibition in Nanjing, east China's Jiangsu province, Oct 5, 2006. [Asianewsphoto]

          Japanese carmaker Mazda Motor Corp said yesterday it raised its stake in a joint venture with China's FAW Group Corp to boost sales in the world's biggest vehicle market.

          Mazda has spent 49.5 million yuan ($7.25 million) increasing its holding in the sales tie-up, FAW Mazda Motor Sales Co Ltd, from 25 percent to 40 percent, it said in a statement to China Daily.

          FAW's share in the joint venture based in northeastern city of Changchun has decreased from 5 percent to 4 percent, and its stake in the group's Shenzhen-listed car unit, FAW Car Co Ltd, has declined from 70 percent to 56 percent.

          Mazda's investment increased the joint venture's registered capital from 100 million yuan to 125 million yuan.

          Related readings:
          Mazda boosts stake in FAW sales venture Mazda sees 2009 China sales up 33%
          Mazda boosts stake in FAW sales venture Shanghai Auto Expo drives sales amid global slump
          Mazda boosts stake in FAW sales venture Global auto makers rev up in China
          Mazda boosts stake in FAW sales venture GM expects China 2009 sales to grow 5-10%

          Mazda, a small player in China compared with Volkswagen, General Motors and Toyota, said it expects to sell 170,000 vehicles in China this year, up one-third from 2008.

          In the first quarter of this year, its sales surged 22 percent year-on-year to 37,217 units. Meanwhile, overall vehicle sales in China climbed 3.88 percent to 2.68 million units, enabling the country to unseat the US as the world's top auto market.

          FAW Mazda, the sales venture, now markets locally made Mazda6 vehicles and the imported Mazda5, Mazda3 hatchback and RX-8 sports car. FAW started producing the Mazda6 in 2003 through a technical licensing deal with the Japanese carmaker.

          Mazda said the venture would have more than 140 dealerships in China by the end of this year, up from 125 in March.

          The Japanese company, 13 percent owned by Ford, also runs a joint venture with the struggling US carmaker and China's Chang'an Motor Corp in Chongqing. The venture makes the Mazda3 notchback in a plant in the southwestern city and the Mazda2 in the eastern city of Nanjing.

          Mazda said the number of the venture's dealerships would rise to more than 110 by the end of this year from 96 in March.


          (For more biz stories, please visit Industries)

           

           

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