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FAW Mazda Disappeared. Will Changan Mazda Succeed After the Merger?

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Recently, FAW Mazda released its last Weibo. This means that in the future, there will only be “Changan Mazda” in China, and “FAW Mazda” will disappear in the long river of history. According to Mazda Automobile’s restructuring agreement in China, China FAW will use its 60% equity investment in FAW Mazda Automobile Sales Co., Ltd. (hereinafter referred to as “FAW Mazda”) to make capital contributions to Changan Mazda. After the capital increase is completed, Changan Mazda It will be changed to a joint venture jointly funded by the three parties. The three parties’ investment ratios are (Changan Automobile) 47.5%, (Mazda) 47.5%, and (China FAW) 5%.

 

In the future, (new) Changan Mazda will inherit related businesses of Changan Mazda and Mazda. At the same time, FAW Mazda will change to a joint venture jointly funded by Mazda and (new) Changan Mazda, and continue to undertake related businesses of Mazda brand vehicles. I believe this is a very good result for Mazda. Compared with its Japanese compatriot Suzuki, at least the Mazda brand has not completely withdrawn from the Chinese market.

 

[1] Mazda is a small but beautiful brand?

 

Speaking of Mazda, this brand gives us the impression of a small but beautiful car brand. And Mazda gives the impression that it is a maverick brand, a brand of personality. When other car brands are using small-displacement turbocharged engines, Mazda insists on using naturally aspirated engines. When other brands are developing towards new energy, Mazda is not very anxious either. So far, there is no development plan for new energy vehicles. Not only that, Mazda has always insisted on developing a “rotary engine”, but in the end everyone knows that the rotary engine model did not succeed. Therefore, the impression that Mazda gives to people has always been niche and maverick.

 

But do you say that Mazda does not want to grow? Definitely not. In today’s auto industry, only large-scale can have stronger profitability, and small brands cannot develop independently. The ability to resist risks is very low, and it is easy to be merged or acquired by larger auto companies.

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Moreover, Mazda used to be a brand with two joint venture companies in China, FAW Mazda and Changan Mazda. So if Mazda does not want to grow, why does it have two joint ventures? Of course, the history of joint venture brands is difficult to say clearly in one sentence. But in the final analysis, Mazda is not a brand without dreams. I also wanted to become stronger and bigger, but it failed. Today’s small and beautiful impression is “being small and beautiful”, not Mazda’s original intention!

 

[2] Why didn’t Mazda develop in China like Toyota and Honda?

 

Japanese cars have always had a good reputation in the Chinese market, so Mazda’s development in the Chinese market has good congenital conditions, at least better than American cars and French cars. What’s more, Toyota and Honda have developed so well in the Chinese market, so why is it that Mazda has not developed.

 

In fact, the truth is very simple, but all car brands that have developed well in the Chinese market are good at doing one thing, which is to develop models for the Chinese market. For example, Volkswagen’s Lavida, Sylphy. Buick GL8, Hideo. They are all provided exclusively in China. Although Toyota does not have many special models, Toyota’s concept of making cars that the people like has always been there. So far, the sales volume is still the Camry and Corolla In fact, Toyota is also a model of developing cars for different markets. Highlander, Senna, and Sequoia are all special vehicles. In the past, Mazda has always adhered to a niche product strategy and has always adhered to the characteristics of sports control. In fact, when the Chinese market was still in the popularization stage in the early days, users only wanted to buy a durable family car. Mazda’s product positioning was obviously related to the market. The demand does not match. After Mazda 6, neither Mazda Ruiyi nor Mazda Atez has actually become a particularly hot model. As for the Mazda 3 Angkesaila, which has a good sales volume, users did not regard it as a sporty car, but bought it as an ordinary family car. Therefore, the first reason why Mazda has not developed in China is that it has never considered the needs of Chinese users.

 

Secondly, if there is no model that is particularly suitable for the Chinese market, then if there is a good product quality, the brand will not disappear as the user’s word of mouth is passed on. And Mazda didn’t even control the quality. From 2019 to 2020, users have successively exposed the problem of Mazda Atez abnormal noise. I think this is also the last straw to crush FAW Mazda. According to the preliminary statistics of the “Financial State Weekly” comprehensive car quality network, car complaint network and other platforms, in 2020, the number of complaints from Atez is as high as 1493. In 2020 The medium-sized car is ranked at the top of the complaint list. The reason for the complaint is concentrated in one word-sound: abnormal sound of the body, abnormal sound of the center console, abnormal sound of the sunroof, abnormal sound of body accessories and electrical appliances…

 

Some car owners told the media that after many Atez car owners initiated rights defense, they had negotiated with dealers and manufacturers many times, but the dealers and manufacturers buckled each other and delayed indefinitely. The problem has never been solved.

 

Under pressure from public opinion, in July last year, the manufacturer issued an official statement stating that it will be responsible for the abnormal noise reported by some 2020 Atez users, and will strictly follow the national three guarantees to protect the rights of users.

 

It is worth mentioning that this note does not mention how to “curse” abnormal noise, only that it should be repaired in accordance with the standard repair process, but it also admits that “recurrence may occur.” Some car owners also reported that the abnormal noise reappeared after a few days after inspecting and repairing the problematic vehicle in accordance with the instructions.

 

Therefore, the quality issue also makes users completely lose confidence in the Mazda brand.

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[3] Facing the future, what else can Changan Mazda know?

 

It is said that Mazda has technology, but it is estimated that Mazda itself did not expect that the highest-selling model in the Chinese market today is still equipped with a 2.0-liter naturally aspirated low-profile model. Under the wave of global electrification, the research and development of internal combustion engines is still focused, of course, including the rotary engines that fans are thinking of. However, after the compression-ignition engine became a tasteless delisting as expected, Mazda also began to think about pure electric models.

 

The CX-30 EV, the first pure electric model launched by Mazda in the Chinese market, has a NEDC range of 450 kilometers. However, due to the addition of the battery pack, the originally smooth and harmonious CX-30 body has been abruptly raised a lot. , It seems extremely uncoordinated, it can be said that this is a very uncoordinated, tasteless design, it is a new energy model for new energy. Such models are obviously not competitive in the Chinese market.

 

[Summary] The merger of North and South Mazda is a self-help attempt, and the merger will not solve Mazda’s predicament

 

According to statistics, from 2017 to 2020, Mazda’s sales in China continued to decline, and Changan Mazda and FAW Mazda are also hardly optimistic. From 2017 to 2020, FAW Mazda’s sales were 126,000, 108,000, 91,400, and 77,900, respectively. Changan Mazda’s annual sales were 192,000, 163,300, 136,300, and 137,300, respectively. .

 

When we talked about Mazda in the past, it had good looks, simple design, durable leather and low fuel consumption. But these qualities are now reached by almost any independent brand. And it is better than Mazda, and even the technology displayed by its own brand is even more powerful than Mazda. Self-owned brands know Chinese users better than Mazda. In the long run, Mazda has become the brand abandoned by users. The merger of North and South Mazda is a self-help attempt, but who can guarantee that the merged Changan Mazda will develop well?

 

 

 


Post time: Sep-01-2021