Mazda set to take stake in Ford's China jv with Changan - report
BEIJING (AFX) - Mazda Motor Corp is set to take a stake in Ford Motor Co's flagship joint venture with China's Changan Automotive Group, the China Daily reported.
In return, Changan Ford Automobile Co will invest in Mazda's joint venture with another Chinese automaker, First Automotive Works Corp (FAW), the newspaper said, citing Ford Motor China chief executive Kenneth Hsu.
Ford owns a 33.4 pct stake in Mazda.
Hsu did not disclose financial details of the two expected deals, the newspaper said.
'A four-party alliance is emerging between Ford, Mazda, Chang'an and FAW, which will facilitate our expansion in China,' Hsu told the newspaper.
Citing analysts, the newspaper said the plan is apparently a Ford-driven compromise between Changan and FAW, who are both looking to get involved with Mazda's growing brand in China.
'The new equity plan will be a good solution to the separation between manufacturing and marketing of the new Mazda3 and future Mazda products in China due to different partnerships,' the newspaper quoted Automotive Resources Ltd analyst Matthew Li as saying.
'It will help unify Mazda's branding activities in China,' he said.
Changan Ford last week started assembling the new Mazda3 at a plant in southwest China's Chongqing municipality, but the sedan will be marketed by FAW-Mazda, which is based in the northeastern province of Jilin, the newspaper said.
Mazda sold 133,778 vehicles in China last year, up 51 pct from 2004.
Mazda sales accounted for 60 pct of Ford's group sales in China, the newspaper said.
In return, Changan Ford Automobile Co will invest in Mazda's joint venture with another Chinese automaker, First Automotive Works Corp (FAW), the newspaper said, citing Ford Motor China chief executive Kenneth Hsu.
Ford owns a 33.4 pct stake in Mazda.
Hsu did not disclose financial details of the two expected deals, the newspaper said.
'A four-party alliance is emerging between Ford, Mazda, Chang'an and FAW, which will facilitate our expansion in China,' Hsu told the newspaper.
Citing analysts, the newspaper said the plan is apparently a Ford-driven compromise between Changan and FAW, who are both looking to get involved with Mazda's growing brand in China.
'The new equity plan will be a good solution to the separation between manufacturing and marketing of the new Mazda3 and future Mazda products in China due to different partnerships,' the newspaper quoted Automotive Resources Ltd analyst Matthew Li as saying.
'It will help unify Mazda's branding activities in China,' he said.
Changan Ford last week started assembling the new Mazda3 at a plant in southwest China's Chongqing municipality, but the sedan will be marketed by FAW-Mazda, which is based in the northeastern province of Jilin, the newspaper said.
Mazda sold 133,778 vehicles in China last year, up 51 pct from 2004.
Mazda sales accounted for 60 pct of Ford's group sales in China, the newspaper said.
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