Changan Automobile and Mazda Joint Venture New Plan

The plan to establish a joint venture company submitted by the Changan Automobile and Mazda to the National Development and Reform Commission in May last year has been rejected by the National Development and Reform Commission. As the contents of the independent brands and R&D centers have not been introduced in the program, the National Development and Reform Commission will not pass them. Now, a new plan that includes the launch of a self-owned brand model has once again been submitted to the National Development and Reform Commission.

Comments: The launch of the joint venture company's own brand model has become an insurmountable threshold for the establishment of a new joint venture. This policy orientation is very strong. It is through these constraints that China’s auto industry’s independent research and development capabilities will be enhanced. The greatest significance of the joint venture’s launch of its own brand is not that it has added a new model, but that it has mastered more core technologies in the launch of its own brand. However, due to the natural shortcomings of China in advanced core technologies, even if the joint venture company launches its own brand models, the R&D dominance and pricing rights of the model will still be held in the hands of foreign parties. In this way, these self-owned brand models will inevitably suffer. It will serve as a tool for foreign companies to regulate foreign brands. Therefore, the ownership of the joint venture brand vehicles in the research and development process is extremely important. In the course of development of the joint venture company, how much can China's opinions be reflected? To gain dominance, the Chinese will obviously have more wisdom.