Mazda to build R&D center in Nanjing, China, following break-up of existing JV

Mazda plans to launch a research and development (R&D) center in Nanjing, China with a local partner, to develop fuel-efficient vehicles for the Chinese market. Investment in the R&D center, which will be completed by 2016, is estimated at US$78.7 million.
The move follows the Chinese government’s approval to overhaul the three-way Changan Ford Mazda Automobile joint venture (JV); Mazda held a 15% stake in the JV.
The Nikkei business weekly reported that Mazda will sell its stake in the JV to Ford, which currently owns 35%, and will set up its own 50-50 JV with Changan Automobile to manufacture the Demio and the Axela subcompacts. It also intends to manufacture sport utility vehicles (SUVs) by 2013.
As a condition of allowing the break up of the JV, the Chinese government required Mazda to set-up an R&D center, as well as manufacture and sell original-brand vehicles.