The Chinese government has approved the split of joint venture (JV) of Ford, Mazda and their Chinese partner Changan as part of Changan Ford Mazda Automobile’s (CFMA) restructuring plan.
The approval allows the three way JV to divide into two 50-50 JVs: Changan Mazda Automobile, (Changan Mazda) and Changan Ford Automobile.
Mazda representative director, board chairman, president and CEO Takashi Yamanouchi said that the official approval allows the firm to launch a new JV Changan Mazda.
"In attaining approval for our restructuring plan, we received a great deal of support from the government and various related parties, and I would like to extend our sincere appreciation to all concerned," Yamanouchi said.
"Implementation of this restructuring will further strengthen the business foundation of each company and enable us to accelerate our expansion in the rapidly-growing Chinese market.
"The new company will establish a research and development center with the aim to provide high-quality products that fulfill the needs of Chinese customers."
Following the split, Changan Mazda, based in Nanjing, will take on all of CFMA's Mazda-associated business that include development, manufacturing, marketing and sales of Mazda's vehicles in China.
Conversely, Changan Ford, which is based in the southwestern city of Chongqing, will take over all of CFMA's Ford-related business, including development, manufacturing, marketing and sales of Ford's vehicles in China.
Further, Mazda is planning to manufacture the new CX-5 at Nanjing plant.
Earlier, Mazda, along with its partners, Changan and Ford, submitted restructuring plan to applicable local and central government authorities as part of their effort to recognize opportunities to improve operations to meet requirements of customers in China.
