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Social Contribution Initiatives

Social Contribution Initiatives

Local Cars Built by Local-People-Mazda's Efforts in the Swelling Chinese Market

1.Establishment of a General Management Company to Consolidate Operations in China

During 2005, China's domestic automobile sales grew 13.4% to 5,920,000 vehicles, surpassing Japanese market sales of 5,850,000 for the year. This makes China the world's second largest automobile market, after the United States. Household vehicle ownership has also rapidly increased, accounting for 3,970,000 of this figure.
Mazda has been a serious contender in the Chinese market since 2001, during which time it has vastly increased both production and sales. In January 2005, Mazda announced it was joining a venture with Changan Ford to establish a vehicle plant in Nanjing. Later that May, Mazda, Ford and Changan Automotive then announced they had gained government authorization for an amalgamated engine production company. Construction of both facilities has since progressed steadily, and currently startup is scheduled for 2007. In March 2005, we established FAW Mazda Motor Sales Co., Ltd. in a joint venture with China FAW Group Corporation as a measure to reinforce our sales network. As a result of this initiative, annual sales in China leapt 51.2% to 133,778 vehicles during 2005, despite intensified market competition. We are progressing steadily toward our mid-term business target for China; to construct a production and sales system for 300,000 vehicles by 2010.
Mazda Motor (Shanghai) Business Management & Consulting Co., Ltd. (MCO) was established in June 2005 to take over general business management for production and sales throughout China. In August that year, MCO was expanded with the China Engineering Support Center, also in Shanghai. MCO head office is responsible for planning, finance, labor and personnel, public relations, information technology and distribution; the China Engineering Support Center overseas research and development, purchasing, quality assurance, and customer service. Together they control all the facilities in China and function as the headquarters.
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