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Discussion Starter · #1 ·
FORD'S Chinese joint venture suspended production of the new Mazda 3 one month after it went on sale in China.
A spokesman from Chang'an Ford Motors Corp, the producer of Mazda 3, confirmed the suspension, but refused to identify the reason.

"We have actively negotiated with all the concerned parties and hope to resume the production as soon as possible," said He Miao, an official from Mazda Motors Corp Shanghai Consulting Co.

Mazda 3, a smaller than the popular Mazda 6, was introduced to the Chinese market on March 8, priced at around 178,000 yuan (US$22,222), competing with Sunny made by Nissan Motor Corp, Corolla of Toyota Motors Corp as well as Bora from FAW Volkswagen Automobile Corp.

"The suspension is likely caused by a split on the production and sales channel between Chang'an Ford Motors Corp and FAW Mazda sales company during their consolidation of the Chinese market," said Hu Song, an auto analyst from Haitong Securities Co Ltd.

Mazda 3 was made by Chang'an Ford, Ford's venture with Chang'an Automobile Corp, in Chongqing plant while its sales channel was controlled by FAW Mazda sales, Mazda's venture with First Automotive Works Group, China's largest automaker.

"The pricing of Mazda 3 is uncompetitive compared with others, which may also have resulted in the complicated internal organization," according to one Mazda dealer, adding he hadn't received any notice from FAW Mazda about how they would deal with the purchase order.

"The suspension may turn some of the car's potential buyers away as they cannot wait under an uncertain timetable,"he said. http://en.chinabroadcast.cn/855/2006/04/21/[email protected]
 

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Discussion Starter · #4 ·
its still suspended....

:nono:

TOKYO, June 7 - Japan's Mazda Motor Corp. said on Wednesday production of the Mazda3 compact car in China was still suspended after two months pending government approval, and its shares sank after a newspaper report of broader roadblocks to its China strategy.

The Hiroshima-based auto maker had voluntarily stopped producing the Mazda3 at a Chinese joint venture on April 7 after just six weeks, citing a flaw in the process of acquiring government approval for the model's production and sale.

A Mazda spokesman said authorities had reviewed the originally submitted documents and had notified the venture that the part of the application covering selling the Mazda3 through a sales network operated by another local joint venture was incomplete.

The three-way manufacturing venture with Ford Motor Co. and Changan Automotive Group had re-submitted the application and was hoping for imminent approval, he said.

Japanese business daily Nihon Keizai reported on Wednesday, however, that the Chinese government wanted Mazda to rethink its strategy of selling all Mazda-badged cars through one company. It cited a source close to Changan Automotive as saying that authorities had disapproved of the separation of manufacturing and distribution, which it requires at other foreign ventures.

After years of difficult negotiations with authorities, Mazda had gained approval early last year to form a sales joint venture in China with local partner FAW Car Co. and its parent, First Automotive Works (FAW), that would have exclusive rights to sell all Mazda-branded cars in China.

The sales company began operations soon after, selling the Mazda6, manufactured at partner FAW's plant, and the imported RX-8 sports car. The company had also sold the Mazda3 for a brief period after production at the Changan-Ford-Mazda plant began in February this year.

Mazda, held one-third by Ford, had made much of the approval for the exclusive sales company, calling it the first of its kind and a crucial step in building its brand in China and achieving its sales target of 300,000 units annually by 2010.

Most foreign car makers have two distinct joint venture partners in China, and vehicles produced by the companies must be sold through their own sales channels.

Mazda said it was sticking to its sales target of 20,000 Mazda3 cars this year, and of growth of at least 10 percent in its total Chinese sales for 2006 from 133,778 units last year.
http://mazdanews.com/node/view/324
 

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Discussion Starter · #8 ·
Mazda's China Production to Resume

BEIJING (XFN-ASIA) - Changan Ford Mazda Motors Corp is expected to resume production of the Mazda 3 sedan after a suspension of more than two months, the Shanghai Securities News reported, citing Changan Automotive Group president Xu Liuping.

Xu did not give further details in the report.

Changan Ford Mazda halted production of the Mazda 3 in April, one month after the model hit the market, due to a dispute between the producer Changan Ford Mazda and FAW Mazda, the sales company.

Changan Ford Mazda is Ford Motor Co's Chinese joint venture with Mazda Motor Co Ltd and Changan Automotive Group.
http://mazdanews.com/node/view/331
 
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