Mazda and its two Chinese partners are restructuring operations to form a new JV in which Mazda will hold a 47.5% stake. Chongqing Changan Automobile will also hold 47.5% of the new joint venture called Changan Mazda Automobile Co Ltd (CMA). FAW will own the remaining 5%.
FAW will make use of the total 60% share it owns in FAW Mazda Motor Sales Co., Ltd. (FMSC) to purchase its new shares.
New CMA will continue to be responsible for the operations of former CMA and other Mazda-related business. FMSC will also continue to be engaged in Mazda brand vehicle business as a joint venture owned by new CMA and Mazda.
Mazda sales in China are a long way behind its Japanese peers. Mazda said in a statement that with the change in the investment structure, the three companies ‘aim to utilize every strategic and managerial opportunity in the new joint investment company and strive to make its business and management system optimal to adapt to the needs of the expanding Chinese market’.