Mazda Motor, China's First Auto Works Set Up Joint Sales Venture

TOKYO January 17, 2005;(AP) -- Mazda Motor Corp. said Monday it will set up a joint venture with China's First Auto Works Group Corp. to sell and distribute cars as it attempts to triple its sales in Asia's fastest growing market in five years.

FAW Mazda Motor Sales Co. will establish the first network of Mazda dealerships in China, said Katsumi Yoshitake, a spokesman for the Japanese automaker.

The joint venture, to be based in China's northeastern city of Changchun, will be operational by March. First Auto Works and its subsidiary FAW Car Co. will take a 75 percent stake while Mazda will control 25 percent of the company.

Mazda and the FAW group have been cooperating to manufacture and sell cars in China since 2001.

Last year, Mazda sold 97,000 of its Mazda 6, Mazda 323 and Plemacy vehicles in China. All were assembled at FAW's plants with key parts, including engines, shipped from Japan, Yoshitake said.

Kiyoshi Ozaki, director and senior managing executive officer in charge of Mazda's China operations, said the automaker aims to produce and sell 300,000 units in the China by 2010.

The joint venture will be capitalized at 1.4 billion yen (US$13.7 million; euro10.5 million). Monday's announcement followed recent approval for the company from the Chinese government.

Ford Motor Co. of the United States owns 33.4 percent of Mazda.