Strife between FAW and Changan intensifies as Mazda 8 rolls off assembly line
- Source: Global Times
- [11:25 December 02 2010]
- Comments
The strife between First Automobile Works (FAW) and Changan Auto Company has intensified as Mazda 8, FAW's first multiple purpose vehicle (MPV) officially comes off the production line.
Just three months ago, the two companies started competing for the car's manufacturing rights. And whoever won would have the privilege of occupying the Chinese domestic MPV market.
On September 27, the mayor and secretary of Changchun Municipal Party Committee, as well as leaders from FAW got together at FAW's First Factory, anticipating as FAW's first MPV came out of production line.
An employee with FAW-Mazda said proudly that in order to fill the vacancy in FAW's MPV market and also diversify its products, the company has been fasting for four years for Mazda 8's production rights.
An insider with the Changan-Mazda said that Changan Auto unexpectedly failed in its fist-twist with Faw. Changan-Mazda sold 66,800 units in the first 10 months, up 22.8 percent from last year but lower than the average increase of 37 percent, making it difficult to realize the company's selling target of 100,000 units for 2010.
The company which has been longing for expanding in the high-end market was hoping to vitalize its market by introducing new products.
Mazda 5, the next target?
As FAW and Changan Auto are in desperate need for new products for expansion, the competition between the two shows no sign of truce. And guesses are cast that their next round will befall on the Mazda 5.
Mazda 5, a family compact MPV, has been sold as an imported vehicle in China for two years.
Yu Hongjiang, deputy manager of FAW-Mazda said that the manufacturing of Mazda 5 in China is still away from reality, since the prospect of family compact vehicles in China falls behind that of MPVs.
As to rumors that Changan-Mazda will sell the model via imports, then later on localize it domestically, He Gang, market manager of Changan-Ford Mazda Sales Company told a reporter that the 2011 Mazda 5 will make its debut at the 2010 Guangzhou Auto Show, and that details will be due at the time.
It is not rare case for Mazda to cooperate with FAW in the high-end automobile market, and with Changan Auto in the economic auto market. Therefore, the likelihood of Mazda 5 falling onto Changanese hands is high.
"To produce the Mazda 5 in Nanjing is geologically and economically good for both Changan and Mazda's development," an insider with Changan-Mazda said.
However, as a two-year-old distributor of Mazda 5, FAW will try its best to joust for the manufacturing rights of the model.
