NANJING, April 26, 2007—Mazda Motor Corporation has announced that the joint venture operation, Changan Ford Mazda Engine Co., Ltd. (CFME) in Nanjing has started mass production of the first BZ series engines to be built in China.

Smooth completion of the project, funded and managed by the joint venture established by Changan Automotive Group, Ford Motor Company and Mazda Motor Corporation, symbolizes the three partners’ mutual commitment and close cooperation. With the beginning of this mass production, CFME will continue to grow at a steady pace, with a production capacity of 350,000 units per year.

With a project investment of over RMB 2.5 billion, CFME began construction in September 2005, and has now completed three major production lines for casting, machining, and assembly. Five key components of the engine: the cylinder block, cylinder head, crankshaft, camshaft, and connecting rod, will be all manufactured on-site. As one of the largest engine manufacturing plants in China, CFME will supply engine products to each party’s vehicle manufacturing operations in China.

“Mazda is committed to succeed in the China market and become a prominent contributor in the auto industry”, says Director and Senior Managing Executive Officer of Mazda Corporation, Mr. Kiyoshi Ozaki. “The Changan Ford Mazda Engine Company is significant in regard to three aspects. First of all, we will produce engines which are actually the “heart” of the vehicle. Second, it is a joint venture company with Changan, Ford and Mazda, through which we can further strengthen our strategic partnership in China. Third, with its operation in Nanjing, we can contribute to the development of the local economy and society. By exploring the full utilization of this plant, we will provide the best products to satisfy our customers here in China.”

CFME’s BZ series engine is one of the world’s finest engines, embodying the latest engine designs, manufacturing and engineering technologies from Mazda. The BZ series engine adopts a modern aluminum cylinder head and block, intake VVT (variable valve timing), plastic intake manifold, TSCV (tumble swirl control valve), and multi-point electronic fuel injection. All of these features have significantly improved engine performance, adding more power and better fuel economy, reducing exhaust and noise as well as exceeding Chinese government standards. In addition to this, another engine series, the “I4”, will be introduced later this year.

Creating the world’s leading engine production facility is a top priority at CFME, which has introduced high-quality, efficient, and flexible production lines, while remaining committed to environmental protection and harmonious development. Combining Mazda’s revolutionary casting technology with a high-pressure casting technique, the casting plant is highly efficient and environmentally friendly. The machining lines are capable of switching conveniently between new and different models, meeting diverse production requirements. The assembly plant is fitted with innovative and highly effective integrated production lines, making it possible to assemble quality parts and whole engines of various types on the same assembly line. Flexible manufacturing technologies help increase capacity utilization and make it possible to add new models at minimum costs, satisfying the constantly changing demands of the auto market.