AutoBeta(AutoBeta.net)07/01 Report--

Since last year, there has been news that a steam Mazda will merge with Changan Mazda. Although officials have refuted the rumors many times, there have been related news recently.

According to Caijing, the news came from a post sold by a 4S store in Mazda in Shanghai on moments. The general content of the moments is: FAW Mazda will merge with Changan Mazda. Our store already has the authorization of FAW Mazda and Changan Mazda at the same time, so it will not be affected.

The general manager of a Changan Mazda 4S store said: "We have also received news from Changan Mazda that FAW Mazda and Changan Mazda will officially announce a merger and carry out channel integration in September."

In view of the above, Caijing Network Automobile verified with the relevant person in charge of Mazda China, the other side said that the capital increase is a fact, the content of the announcement shall prevail, this is a public listing, delisting enterprises are not yet aware of. Other news was not available for comment.

As early as the end of 2020, there was news of the dissolution of Mazda. An unconfirmed "regional reliable news" Wechat picture circulated on the Internet on Dec. 24, showing that FAW Mazda will be disbanded and suspended production, and subsequent arrangements are also revealed in the news.

According to the news, the FAW Mazda Division was dissolved in June 2021, and the former FAW Mazda sales Company employees were transferred to the Pentium or Red Flag Division; Atez permanently stopped production and the existing inventory was cleared; CX-4 expected to schedule production to May, and the existing spare parts were digested and stopped production; the former FAW Mazda dealers continued to sell CX-4 and provide after-sales services for car owners. During the transition period of two years, the current long Amma Zda models (including the new generation Mazda 6 and the new CX-50) will be sold together from 2023; at the same time, FAW Group has completely independent intellectual property rights to CX-4, and after stopping production, it adopts Pentium model powertrain and logo, and is incorporated into FAW Pentium network sales.

In April this year, according to a report by China Finance and Economics, FAW Mazda, Mazda and Changan Motor are in talks to merge the business related to the Mazda brand being carried out by FAW Mazda Automobile sales Co., Ltd. (hereinafter referred to as "FAW Mazda") into Changan Mazda Automobile Co., Ltd. (hereinafter referred to as "Changan Mazda").

According to media reports citing FAW insiders, "the restructuring is expected to be completed by June, and the outflow of personnel is accelerating." Changan Automobile sources also confirmed the above news to China Business and said that in addition to the merger at the dealer level, models such as Atez will also be transferred to Changan Mazda for production. However, officials have denied both reports.

It is worth mentioning that in June this year, Changan Mazda Automobile Co., Ltd. capital increase project has been officially disclosed. According to the project announcement, after the completion of the capital increase project of Changan Mazda Automobile Co., Ltd., the shares held by the new investors shall not exceed 5% (inclusive), and the total shareholding proportion of the original shareholders shall not be less than 95% (inclusive); the proposed new registered capital is 5.8404 million US dollars, and all the funds raised in excess of the new registered capital shall be included in the capital reserve and shall be shared by both new and old shareholders according to the proportion of their shareholdings. The purpose of raising funds is to "improve business quality, improve and optimize industrial layout, and enhance the competitiveness of enterprises."

According to the sales data released by Mazda China in 2020, Changan Mazda provides most of the sales support. It is understood that the cumulative sales of Mazda in China in 2020 was 214574 vehicles, down 5.79% from the same period last year. Among them, Changan Mazda sold 136667 vehicles for the whole year, up 0.24% from the same period last year; FAW Mazda sold 77907 vehicles, down 14.78% from the same period last year.

The lacklustre performance of FAW Mazda, one of the joint ventures, has seriously depressed sales of the Mazda brand in China. Since August 2020, Changan Mazda has sold twice as much as FAW Mazda, and this polarization has continued over the next few months. Based on the market performance, it is possible for FAW Mazda to be merged into Changan Mazda to improve its competitiveness, but the specific news can only be based on official news.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat