Mazda, Ford deny plans to dissolve China venture

• Source: Global Times
• [17:33 January 18 2010]
• Comments

Mazda Motor and Ford Motor today denied reports they planned to dissolve or restructure their joint venture in China with Changan Automobile, according to AFP.

Shanghai-based spokesman for Ford, Ted Liu and Mazda's China spokesman, Naodo Oikawa both told AFP that such reports were speculation. "The three partners – Mazda, Ford and Changan – continue to enjoy a positive relationship," Oikawa said.

Japan's Nikkei newspaper reported Sunday that Mazda, Ford and China's Changan Automobile had basically agreed to split their three-way joint venture, Changan Ford Mazda, into two entities.

The Wall Street Journal also said Mazda and Ford were in discussions to split their shared manufacturing bases into separate entities. It said Ford and Changan would own and operate the Chongqing plant, while the Nanjing base would be run by Mazda and Changan.

Mazda confirmed it would move production of its Mazda 3 compact car from Chongqing to its Nanjing plant where it already makes the Mazda 2. Oikawa denied this was part of a restructuring of the three-way venture.

Mazda's Tokyo-based spokesman Yuji Kato explained that the move was meant to give more production room for Ford in the Chongqing factory.

Agencies and Shi Jierui contributed to this story