Shanghai (ZXZC)- Changan Automobile announced on September 4 that it will acquire the other 50% stake in Changan Suzuki, which was previously owned by Suzuki Motor and Suzuki (China) Investment Co.,Ltd, with RMB 1.

After the acquisition completes, Changan Suzuki will be wholly possessed by Changan Automobile and be incorporated into the consolidated statements of the Chinese parent company.

Zhu Huarong, president of Changan Automobile, said the joint venture will remain its original name before the joint venture contract with Suzuki Motor is officially dissolved in 2020.

Changan Suzuki was founded in May, 1993, with a registered capital of $190 million. Three shareholders, namely, Changan Automobile, Suzuki Motor and Suzuki (China) Investment Co.,Ltd, possessed 50%, 40% and 10% stake respectively in the Sino-Japanese joint venture. It currently has two plants in Chongqing with a total capacity of 350 thousand vehicles and 350 engines on an annual basis.

In 2009, Changan Suzuki's annual sales exceeded 150 thousand vehicles for the first time thanks to the roll-out of the new Alto. Then, the automaker saw its annual sales jump to 200 thousand units and to 220 thousand units in 2010 and 2011.

However, the joint venture failed to maintain the upward sales momentum after 2011, suffering continuous sales drop year by year due to lack of new blood and competitiveness in product lineup. Last year, the company only delivered around 86,000 vehicles.