Changan Suzuki Automobile Co., Suzuki Motor Corp.'s joint venture with Changan Automobile Co., denied that it would wind down operations amid shrinking sales.
ˇ°Changan and Suzuki, as parent companies of Changan Suzuki, are strong and responsible. The two sides have long been in active discussions about Changan Suzuki's future development,ˇ± Changan Suzuki said in a statement on its website. ˇ°Guided by its strategy of developing ˇ®refined small vehicles', Changan Suzuki will continue to provide consumers with high quality products and services.ˇ±
Changan Suzuki made the statement last week in response to a Chinese blogger, Su Shaojun, who had posted a blog on an online community website, Zhihu, claiming that a joint venture carmaker will soon exit the market.
The blog led Chinese media to suspect that the joint venture is Changan Suzuki, which has suffered steep sales declines for several years.
Changan Suzuki was established in 1993 in the southwest China municipality of Chongqing as a 50-50 partnership between Changan and Suzuki.
The company's two assembly plants in Chongqing combined can produce up to 350,000 vehicles at full capacity. Its annual sales have declined drastically after peaking at roughly 220,000 vehicles in 2011.
In 2017 Changan Suzuki only sold about 84,000 vehicles, slumping 27 percent from a year earlier, according to the China Association of Automobile Manufacturers.