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December 5, 2007 |
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MAZDA MOTOR: Planned Sales Consolidation Will Not Push Through Mazda Motor Corp.'s China unit has recently named its chief operating officer, Noriaki Yamada, as head of its marketing and sales in China, reports SinoCast China Transportation Watch. According to the report, Mazda, which planned to consolidate its sales operations in China into only FAW Mazda Automobile Co., Ltd., failed to make the plan come true. Originally, Mazda China will take charge of the sales operation in China with two sales networks in FAW Mazda and Chang'an Ford Mazda Automobile Co., Ltd. in order to support Mazda's plan to enrich its products portfolio in the country, states the report. SCTW relates that the plan was Mazda's strategy to sell Mazda-branded cars that would be made in China in future via FAW Mazda, Mr. Yamada, former president of FAW Mazda, disclosed when the Japanese auto giant formed the sales venture in 2005 in partnership with China FAW Group Corp. and its subsidiary FAW Car Co., Ltd. However, Chang'An Auto Group, another Chinese partner of Mazda, opposed to the proposition. Mazda, its controlling shareholder Ford Motor Co., joined hands with Chang'An Auto to form Chang'an Ford Mazda, recalls the report. After discussions, Chang'an Ford Mazda, Mazda Motor and FAW reached accord that Mazda 3 and the future models to be made in Chang'an Ford Mazda would only be available in the new sales arm of Chang'an Ford Mazda. About Mazda Motor Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor Corporation -- http://www.mazda.co.jp/ -- together with its subsidiaries and associates, is primarily involved in the manufacture and distribution of automobiles. The company manufactures passenger cars and commercial vehicles. Mazda Motor distributes its products in both domestic and overseas markets. The company has 58 subsidiaries. It has overseas operations in the United States, Canada, Mexico, Germany, Belgium, France, the United Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand, Indonesia and China. The Company has a global network. * * * As reported in the TCR-AP on April 27, 2007, Standard & Poor's Ratings Services raised Mazda Motor Corp.'s long-term corporate credit rating and the company's long-term senior unsecured debt to: * Corporate Credit Rating: BB /Stable/ * Company's Long-term Senior Unsecured Debt: BB+ S&P's rating actions reflect Mazda's improved operational and financial performance, and financial risk profile. Mazda's operating and financial performance has been improving over the past several years due to the success of new products following a shift in strategy. The company continued to improve operating and financial performance in the nine months ended Dec. 31, 2006, owing to an improved sales mix and favorable foreign exchange rates. Although the EBITDA margin of about 6% remains lower than most of its Japanese peers, profitability is steadily improving. Mazda is now focusing on certain segments instead of attempting to compete as a full-line producer. The company also has excellent product engineering capabilities. |
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