Japan's Mazda Motor Corp said yesterday it will form a car sales joint venture in China with First Automotive Works Corp (FAW), China's premier vehicle producer.

Under the plan, Mazda, 33.4 per cent controlled by Ford Motor Co, will hold a 25 per cent stake in the joint venture with a registered capital of US$100 million yuan (US$12 million).

FAW and its Shenzhen-listed affiliate FAW Car Co Ltd will control 5 and 70 per cent of the joint venture.

The new firm, to be based in Changchun, Northeast China's Jilin Province, will be responsible for marketing all Mazdas made in China and will begin operating in March, the companies said in a joint statement.

FAW Car Co Ltd now produces Mazda6 medium-sized sedans in Jilin under a technical licensing deal with the Japanese firm.

FAW's other plant on Hainan Island also holds licences to produce Mazda's Familier sedans and Premacy multi-purpose vehicles.

Mazda will also manufacture cars at its newly-launched joint venture in eastern Jiangsu Province with Ford and China's Chang'an Motor Corp.

The new venture, which will also make Fords, will have an initial manufacturing capacity of 150,000 units annually, but this could be expanded to 200,000 units.

Mazda announced last week that it aims to sell 300,000 cars in China annually by 2010.

Last year, its sales in China grew by 21 per cent to 97,132 from 2003. This year the company's goal is to break 100,000.

To help achieve this, Mazda plans to introduce eight new models in China within the next three to four years.

"The creation of the sales joint venture marks Ford's closer links with FAW," said Kenneth Hsu, Ford Motor China Group's spokesman.

Ford also runs two manufacturing joint ventures with Chang'an, China's third largest automaker in southwestern Chongqing Municipality, and Jiangling Motors in East China's Jiangxi Province.

The Ford-Chang'an venture currently makes Fiesta compact sedans and Mondeo mid-sized sedans.

The venture with Jiangling produces Transit commercial wagons.

Source: China Daily