BEIJING, Sept. 5 (Xinhua) -- Changan Automobile announced that it plans to purchase 50 percent equity of Changan Suzuki Co., Ltd for 1 yuan.
It includes a 40 percent stake held by Suzuki Motor Corporation, and a 10 percent stake by Suzuki China.
According to a company filing, after the acquisition, Changan Automobile will hold 100 percent stakes in Changan Suzuki Co., Ltd.
The move marks the official withdrawal of Suzuki Motor from the Chinese market.
The direct reason for Suzuki's withdrawal from the China's auto market is the sluggish performance of the company in the country. In 2017, Changan Suzuki sold 86,513 units of vehicles, down 26 percent year on year. The company incurred net losses of 84.82 million yuan during the period.
In the first seven months of 2018,Changan Suzuki sold 26,221 units of passenger vehicles, down 47.3 percent year on year. Moreover, Jiangxi Changhe Suzuki Automobile Co., Ltd sold 26,370 units of passenger vehicles in 2017, down 42 percent year on year. (Edited by Ma Xin, maxin11@xinhua.org)
A single purchase
