Mazda Establishes China Engineering Support Center

Shanghai, China, Aug 4, 2005 - (JCN Newswire) - Mazda Motor (Shanghai) Business Management and Consulting Company--known as Mazda China Operations (MCO)--today announced the opening of the Mazda China Engineering Support Center (CESC), a branch office located in the Jiading district of Shanghai.

The technical center, located about 30 kilometers northwest of downtown Shanghai, has both an office and workshop contained in the 3700 square meters of total floor space. Mazda currently plans to dispatch 13 employees from Japan to the engineering center, projected to have approximately 55 employees (including locally hired employees) by the end of 2005.

The CESC was created to provide technical support for R&D, purchasing, quality, and aftersales service for Mazda business operations in Nanjing, Changchun and Hainan. As Mazda's business in China develops, the center will support the start-up of locally manufactured vehicles and engines. It will also analyze customer concerns to effect swift product modifications, and take the lead in conducting market research to incorporate customers' needs into future products.

Akira Tanioka, the chief of the new engineering center as well as vice-president of Mazda China Operations, said, "Mazda is in China to offer high quality, distinguished products to our Chinese customers. To do so, each and every staff person at CESC will work with our Chinese manufacturing partners to make great cars, responding quickly to the voice of the customer. At the same time, this cooperation has to be fundamental to our future product development as well. By learning together with our Chinese staff members, I am sure this engineering support center will quickly set down deep roots in China."

Seeking to expand its business in China, Mazda has constructed a production system and sales network and set a mid-term goal of 300,000 unit sales in 2010. To achieve this goal, in January 2005, Mazda disclosed its plans to join with Changan Automotive Group and the Ford Motor Company to build a joint venture assembly plant in Nanjing as a means of enhancing its production system.

In May 2005, approval was also given for the Changan Ford Mazda Engine Company project, a joint venture engine assembly facility. To reinforce its sales system, the jointly established FAW Mazda Motor Sales Company (FMSC) was founded in March 2005.

At the same time, to further bolster its vehicle lineup, Mazda plans to launch eight new models over the next three years into the Chinese market. In July of this year, Mazda commenced sales of its rotary engine brand icon, the four-door, four-seat RX-8 sports car.

MCO was established in Shanghai's Pudong District in January 2005 as Mazda's headquarters in China, charged with the overall management of Mazda's business interests throughout China. Kiyoshi Ozaki was appointed Chairman of the Board, and Satoshi Tachikake, executive officer and general manager of Mazda's China Business Division, became MCO President and CEO. Mazda China Operations has 30 employees as of August 1, 2005.

In 2000, Mazda commenced full-scale business operations in the China market, subsequently making great strides in production and sales growth. In the midst of fierce competition in the passenger vehicle market in 2004, Mazda year-on-year sales were up 14.6 percent to 88,462 units. In the first six months of calendar year 2005, Mazda sales rose 53.6 percent on year to 70,357 units, showing great progress towards achieving its 2005 sales targets.