FAW Group

FAW Group
FAW Group Corporation
Type State-owned enterprise
Industry Automotive
Founded July 15, 1953
Headquarters Changchun, China
Products Automobiles
Employees 132,000 (2007)
Subsidiaries Hongqi, Besturn
Website FAW.com

FAW Group Corporation (simplified Chinese: 第一汽车集团; traditional Chinese: 第一汽車集團; pinyin: Dìyī Qìchē Jítuán) is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company (SZSE: 000800), Tianjin FAW Xiali Automobile Co Ltd (SZSE: 000927), Changchun FAWAY Automobile Components Co Ltd (SSE: 600742).

A maker of automobiles; buses; light, medium, and heavy-duty trucks;[1] and auto parts;[2] FAW became China's first automobile manufacturer when it unveiled the nation's first domestically produced passenger car, the Hong Qi, in 1958.[3]

The company is currently one of the "top 4" Chinese automakers along with Chang'an Motors, Dongfeng Motor, and Shanghai Automotive Industry Corporation.[4] Selling 2.56 million units in 2010 made it the third most-productive vehicle maker in China that year, and one of its offerings, the FAW Xiali, was the 7th most-purchased car in China in 2010.[5]

FAW has its headquarters in Changchun, a tree-lined city on the Northeastern Songliao Plain.[6]

Contents

History

In 1953, the first year of the first five-year plan,[7] First Automobile Works broke ground for its first factory,[1] but it wouldn't produce its first product, the 4-ton Jie Fang CA-10 truck (based on the Russian ZIS-150), for three more years.[8]

Soviet Russia lent assistance during these early years, providing technical support, tooling, and production machinery.[7] Before its first factory opened, 39 Chinese FAW employees traveled to the Stalin Truck Factory for instruction in truck production.[8] Operations were conducted in the Soviet mold, and Russia is even credited with choosing Changchun as the location for this new vehicle-manufacturing base.[9] The city boasted an industrial base left over from Japanese occupation and, situated in northeastern China, is near Russia.[10]

First Automobile Works initially made only commercial trucks[1] but started producing passenger cars in 1958.[8] These vehicles, the Hong Qi luxury sedans, were the first domestically produced Chinese automobiles.[8] Only for party elite, the design changed little over their thirty-year production run.[11] Following this, FAW's Audi products are the traditionally favored choice for ranking Chinese state officials.[12] These Audis are, alongside Beijing Benz Mercedes Benzes, Brilliance Auto BMWs, and Lexuses, some of the only Western luxury cars to have gained popularity in the Chinese market.[13]

In 1992, the name First Automobile Works was changed to China FAW Group Corporation.[14]

Though FAW was the fourth Chinese automaker to take on Western partners, its early joint venture with Volkswagen in 1990 saw it become the second Chinese auto company to develop a strong cooperative relationship with a foreign counterpart. SAIC was the first, in 1984 and also with VW.[15] Other, failed foreign-Chinese joint ventures preceding FAW-VW were what is now Beijing Benz and the failed Guangzhou Peugeot Automobile Company.[16]

Volkswagen was its first foreign partner, but others soon followed. FAW acquired 50% ownership of Tianjin Automotive Xiali in September, 2002, and renamed the brand FAW Tianjin.[17] As a result, FAW ended up with Toyota as a foreign joint venture partner in 2003.[18] FAW established a joint venture with General Motors in 2009[19] and has joint ventures with a handful of other foreign companies as well.[citation needed]

FAW produced more than 1.5 million vehicles in 2008, and in 2009 it was the largest machinery corporation and the second largest auto manufacturer in China.[20]

Badge

The FAW "winged 1" badge is derived from the Chinese 一汽 ("一" meaning "one" and "汽", from "汽車" meaning "automotive") and depicts a hawk spreading its wings.[14] The logo was introduced in 1964.[21]

Brands

FAW semi-trailer truck in China

FAW sells products under at least ten different brands including its own. The following is an incomplete list.

  • Besturn, established on August 18, 2006,[22] It may also be known as Ben Tung.[23]
  • Haima, a brand for Mazda-based vehicles built in Hainan
  • Jiaxing (formerly Huali), a brand of Tianjin FAW Xiali Automobile Company, a car manufacturing subsidiary of FAW
  • Shenli[24]
  • Pengxiang[25]
  • Dario[26]
  • Yuan Zheng[27]
  • Tianjin Xiali[26]
  • Hong Qi (meaning "Red Flag"[11])
  • Jie Fang
  • Jilin, a maker of mini-vehicles, small trucks and vans that see commercial use, in Jilin City, Jilin province[28]

Its foreign joint ventures also manufacture the following brands for sale in the Chinese market:

FAW-built Audi 100

Export countries

While primarily manufacturing products for sale in its home market,[citation needed] FAW has exported products to many countries beginning in 1957 with the sale of three commercial trucks to a businessperson in Jordan.[8]

FAW has had customers in more than 80 countries throughout the life of the company.[6] Nations it has exported products to include Egypt,[30] Iraq,[31] Kenya,[31] Mexico,[32] Pakistan,[31] Russia,[33] South Africa,[34] and Uruguay.[35] and Peru. (only the Cale)

Subsidiaries and joint ventures

FAW has at least 28 wholly owned subsidiaries and controlling shares in 18 partially owned subsidiaries. These include the wholly owned subsidiaries FAW Jie Fang Truck Co Ltd and FAW Bus and Coach Co Ltd, the foreign joint venture FAW-Volkswagen Automobile Co Ltd, and the publicly traded FAW Car Co Ltd, Tianjin FAW Xiali Automobile Co Ltd, and Changchun FAWAY Automobile Components Co Ltd.[1]

Please bear in mind that unit/year production capacity figures may consider engines and whole vehicles as discrete. The following is an incomplete list.

The 9th Industrial Machinery Design and Research Institute

A wholly owned subsidiary since 1958, this institute is responsible for production base design.[36]

Chengdu Araco Automobile Trim Part Co Ltd

This joint venture with Japan's ARACO produces interior trim parts.[37]

Chengdu FAW Automobile Co Ltd

Becoming a partially owned subsidiary in 2002 after the acquisition of the Sichuan Bus Company,[37] FAW was able to retain this company's cooperative effort with Toyota, and, as of 2003, Chengdu FAW Automobile Co Ltd produces Huaxi brand light and medium buses, spare parts, and the Toyota Landcruiser Prado.[37]

Chengdu FAW Co Ltd

This subsidiary of FAW's joint venture with VW controls production bases in Chengdu, Sichuan province.[38]

Dalian Diesel Engine Co

Becoming a wholly owned subsidiary in 1986, 35 years after its inception,[39] this company produces engines for commercial trucks, construction equipment, and agricultural machinery.[40]

FAW-Volkswagen Automobile Co Ltd
Main article: FAW-VW Automobile

Established in 1991, this large-scale automobile manufacturer is a joint venture between FAW Group and Volkswagen AG which, as of 2003, have ownership stakes of 60% and 40%, respectively.[41] It manufactures Audi and Volkswagen-branded automobiles for sale in China.[42]

FAW Bharat Forging Co Ltd

A joint venture with India's Bharat Forge Ltd, it manufactures forged automotive components for passenger cars, buses, and commercial vehicles as well as forged products for the railway, mining, steel, and petroleum industries.[43]

FAW Car Co Ltd
Main article: FAW Car Company

Created in 1997 from the merger of Changchun Gear Factory, the FAW No. 2 Engine Factory, the FAW No. 2 Car Factory, and the former FAW No. 1 Car Factory,[44] this publicly listed subsidiary, as of 2003, produces a Hong Qi luxury sedan, other car models, transmissions,[44] and engines.[45] It has a production base in western Changchun, Jilin province.[46]

FAW Forging Co Ltd

Producing die and hand-forged auto parts, this subsidiary was established on 31 May 2000.[47]

FAW Foundry Co Ltd

This wholly owned subsidiary produces cast auto parts including engine blocks.[48]

FAW Hainan Automobile Co Ltd

Operating the southernmost FAW production base,[24] it has manufactured license-built Mazdas since 1990.[17]

FAW Huali (Tianjin) Automobile Co Ltd

A joint venture with Tianjin Automotive Industry (Group) Co Ltd that, since 2003,[49] has manufactured Daihatsu models sold under the brand name Dario,[26] as of 2008 it continues to produce Daihatsu models, has a 10,000 units per year production capacity, and is majority owned by FAW with a 75% ownership stake.[49]

FAW Hongta Yunnan Automobile Co Ltd

Created in 1997 when FAW purchased a controlling interest in Hongta Yunnan Automobile Co Ltd, this subsidiary company, as of 2003, produces 1/2-3 ton pickups and light trucks as well as license-built Daihatsu models.[50]

FAW Import and Export Corporation (FAWIE)

Established as a subsidiary in 1984, FAWIE is the international sales and marketing division of FAW Group.[51] Overseas joint ventures and technical cooperation with foreign countries are also within its remit.[51] This subsidiary has established overseas production facilities in Pakistan, South Africa, Tanzania, Ukraine, Vietnam, and Russia.[33]

FAW Jilin Automobile Co Ltd
Main article: FAW Jilin

Founded in 1980, this company became a wholly owned subsidiary of FAW Group in either 1987[35] or March 1991.[17] It manufactures very compact trucks and buses originally based on Suzukis. More recently, Jilin participated in a five-year long joint venture with Daihatsu.[52]

FAW Jie Fang Truck Co Ltd

Established as a subsidiary on 18 January 2003, it is a producer of medium and heavy trucks. With two subsidiaries of its own, Qingdao Truck Division and FAW Trading Company,[53] it is one producer of Jie Fang brand trucks.[53] As of 2003, FAW Jie Fang Truck utilizes production lines dating from 1956.[53]

FAW Jiaxin Heat Treatment and Electroplate Technology Co Ltd

This wholly owned subsidiary designs and manufactures complete heat treatment and electroplating systems.[54]

FAW Sihuan Automotive Co Ltd

Established in 1997, this part-owned subsidiary designs, produces, and markets medium and heavy truck bodies, wheels, and components for both FAW and other manufacturers.[55] Its joint venture with Johnson Controls, Changchun Fawer-Johnson Controls Automotive Systems Co Ltd, produces a wide range of interior components including automotive seats and trim.[55]

FAW Tool Co Ltd

This wholly owned subsidiary specializes in development and production of non-standard tools for automotive manufacture.[56]

FAW Tool and Die Co Ltd

Manufacturing automotive dies is the main responsibility of this wholly owned subsidiary.[56]

FAW Toyota Motor Sales Co Ltd

This subsidiary company, as of 2007, sells products made by joint venture Tianjin FAW Toyota Motor Co Ltd in China through a network of 260 showrooms and is also responsible for after sales service of FAW-built Toyota and Daihatsu vehicles produced in China.[57]

FAW Tianjin Xiali Automobile Co Ltd
Main article: FAW Tianjin

Founded in 1968, this subsidiary manufactures compact cars and since 2002 has had a joint venture with Toyota Motor Corporation, Tianjin FAW Toyota Motor Co Ltd.[18]

FAW Toyota Changchun Engine Co Ltd

Making engines at a 130,000 units/year capacity production base in the Changchun Economic and Technology Development Zone, this equally owned joint venture was established in 2004.[49]

FAW Qiming Information Technology Co Ltd

Established in 2000, this subsidiary company is responsible for GPS research and development, business development, sales and marketing, after sales support, and system integration.[58] A vehicle-monitoring division of its GPS research & development arm used a system purchased from Avaya to, "monitor over 3,000 vehicles throughout China".[58]

FAW-GM Light Duty Commercial Vehicle Co Ltd

This joint venture with General Motors mainly produces Jie Fang light-duty trucks.[59]

GS Motors SA de CV

Possibly a joint venture with Grupo Salinas, it may manufacture and distribute cars in México and Latin America.[citation needed]

Guangzhou Toyota Motor Co

This joint venture with Toyota, as of 2007, has a passenger car production base in the Nansha Economic Development District of Guangzhou, Guangdong province.[60]

The Harbin Light Vehicle Factory

Established in 1965, this FAW Group subsidiary made military vehicles until partnering with FAW in the 1990s.[61] It has since produced pickups, Jie Fang trucks, and mini-vehicles (small trucks and vans that see commercial use).[61]

Sichuan FAW Toyota Motor Co

As of 2007, this joint venture with Toyota has a passenger car production base in the Chenghua District of Sichuan province and another in Changchun, Jilin province.[60] As of 2008, its 10,000 units/year capacity production base in Changchun makes the Toyota Prius and the Toyota Land Cruiser. Its other production base may make buses.[49]

Tianjin FAW Toyota Motor Co Ltd

Created in 2003,[18] this equally owned joint venture with Toyota, as of 2007, has one passenger vehicle production base in the Xiqing District of Tianjin[60] and two in the Tianjin Economic and Technological Development Zone.[18] As of 2008, it continues to control 3 production bases and manufactures several Toyota products including the Corolla and Vios. It has a total units per year production capacity of 470,000.[49]

Tianjin FAW Toyota Engine Co Ltd

This equally owned joint venture with Toyota makes engines at its production bases in the Xiqing District of Tianjin and at the Tianjin Economic and Technological Development Zone. Combined, both bases can produce 440,000 units annually.[49]

Wuhu FAW Yangzi Automobile Co Ltd

This joint venture with Yangzi Group and Wuhu Automotive Industry Company manufactures trucks, custom bus chassis, and medium-size buses.[62]

Production bases and facilities

FAW has production bases located in 14 provinces throughout China[6] including the provinces of Guangdong,[63] Hainan,[1] Heilongjiang,[1] Jilin,[1] Liaoning,[64] Shandong,[1] Sichuan[1] and Yunnan.[1] Non-provincial locales include Pudong[25] and Tianjin.[1]

Changchun

FAW headquarters are located in Changchun, Jilin province. An R&D and test center is also located there.[65] Additionally, FAW has two production bases here; one produces for the FAW-Volkswagen joint venture and the other makes self-branded autos.[66]

Chengdu

An unfinished production base in the Longquan Economic Development Zone in Chengdu, Sichuan province, replaces an older Sichuan base and will produce passenger cars for a FAW-Toyota joint venture, Tianjin FAW Toyota Motor Co Ltd, when it is completed in 2010.[67]

FAW Jie Fang Truck Co Ltd also has a production base here.[25]

Another site in Chengdu produces cars for FAW-Volkswagen,[38] and a second VW production base is, as of 2009, scheduled to be built in the city.[68]

Dalian

The Dalian division of FAW Bus and Coach Co Ltd manufactures Jie Fang and Yuan Zheng brand medium and large-size buses in a production base in Dalian, Liaoning province.[27] An unfinished bus production base in at the Dalian Economic & Technological Development Zone is expected to be complete in mid-2010 and will produce hybrid buses.[64]

Another Dalian base produces engines for commercial trucks, construction equipment, and agricultural machinery.[40]

Foshan

A 150,000 units/year production capacity FAW-VW production base will soon be built in this Guangdong province city.[63]

Hainan

Located in the sunny, Southern vacation spot of Hainan island and built in 1958, Hainan Island Test Grounds is an auto testing site that includes a test track.[24] FAW Hainan Automobile Co Ltd operates FAW's southernmost production facility here.[24]

A production base on the island manufactures license-built Mazdas.

Harbin

A planned production base at the Aviation & Automobile Development Zone (Pingfang Development Zone) in the city of Harbin, Heilongjiang province, will see completion in December, 2010, and produce light trucks.[61]

Pudong

FAW Jie Fang Truck Co Ltd has a production base in Pudong New Area.[25]

Tianjin

Plants No. 1, 2, and 3 in the city of Tianjin produce automobiles for the FAW-Toyota joint venture Tianjin FAW Toyota Motor Co Ltd.[69] Plant No. 1 is in Yangliuqing Town, Xiqing District,[69] and plants No. 2 and 3 are located in the Tianjin Economic and Technological Development Zone and began production in 2007.[69] Tianjin FAW Toyota Motor Co Ltd also has an engine plant in Tianjin.[70]

Qingdao

A FAW Jie Fang Truck Co Ltd medium, heavy, and severe-duty truck production base is located in Qingdao, Shangdong province.[25]

See also

Factory 1b.svg Companies portal

References

  1. ^ a b c d e f g h i j k About FAW Profile FAW Official Site
  2. ^ Products Components & Parts FAW Official Site
  3. ^ Key Events, May 21, 1958/Aug. 1, 1958 FAW Official site
  4. ^ New policy to encourage China's carmaker consolidation xinhuanet.com, 2010-02-22 10:27:20
  5. ^
  6. ^ a b c FAW Today FAW's 50th Anniversary Brochure
  7. ^ a b FAW Group Steps up Global Expansion FAW Official Site, Mar 27, 2007
  8. ^ a b c d e About FAW > Key Events FAW Official Site
  9. ^ Richter, Frank-Jürgen (2000). The dragon millennium: Chinese business in the coming world economy. Greenwood Publishing Group. pp. 70. ISBN 1567203531, 9781567203530. http://books.google.com/books?id=Jbml6D5VDp4C&lpg=PA65&dq=%22Shanghai%20Car%20Plant%22&pg=PA70#v=onepage&q&f=false. 
  10. ^ For pre-existing industrial base, see Thun, Eric (2006). Changing lanes in China: foreign direct investment, local government, and auto sector development. Cambridge University Press. pp. 102. ISBN 0521843820, 9780521843829. http://books.google.com/books?id=Oej72nssLcUC&lpg=PA103&dq=SAIC%20shanghai&pg=PA102#v=onepage&q&f=false. 
  11. ^ a b The home team economist.com, Nov 13th 2008
  12. ^ Chinese public revved up over BMW, Benz on gov't car list xinhuanet.com, 2009-06-13
  13. ^ SHIROUZU, NORIHIKO (JUNE 7, 2011), "Chinese Begin Volvo Overhaul", Wall Street Journal, http://online.wsj.com/article/SB10001424052702304563104576363041069364856.html, retrieved JUNE 9, 2011 
  14. ^ a b About FAW > Corporate Trademark FAW Official Site
  15. ^ Theme and variations economist.com, Nov 13th 2008
  16. ^
  17. ^ a b c World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o.. 2006. p. 232. 
  18. ^ a b c d Home > About Us > Company Introduction > TOYOTA Motor Co., LTD. Tianjin Xiali Official Site
  19. ^ GM, China FAW Set Up Commercial-Vehicle Joint Venture Bloomberg.com, August 30, 2009
  20. ^
  21. ^ About FAW > Key Events FAW Official Site
  22. ^ About FAW > Key Events FAW Official Site
  23. ^ Besturn B90 Sedan spotted out testing chinacartimes.com, October 27, 2010
  24. ^ a b c d Page 40 FAW 50th Anniversary Brochure
  25. ^ a b c d e Page 34 FAW 50th Anniversary Brochure
  26. ^ a b c d Page 33 FAW 50th Anniversary Brochure
  27. ^ a b Page 32 FAW 50th Anniversary Brochure
  28. ^ Home > About US > History FAW Jilin official site
  29. ^ "Strife between FAW and Changan intensifies as Mazda 8 rolls off assembly line." globaltimes.cn, December 02 2010
  30. ^ New China-made Cars Launch at Egypt Market FAW Official Site, Jul 3, 2009
  31. ^ a b c FAW 50th Anniversary Brochure
  32. ^ FAW Exports 920 Xiali cars to Mexico FAW Official Site, Jun 25, 2009
  33. ^ a b FAW Group Tapping Russian Market FAW Official Site, Mar 28, 2007
  34. ^ FAW¡¯s Jiefang Brand Cement Mixers Popular in South Africa FAW Official Site, Jun 14, 2007
  35. ^ a b FAW Exported Mini Vans to Uruguay FAW Official Site, Jan 22, 2008
  36. ^ Page 26 FAW 50th Anniversary Brochure
  37. ^ a b c Page 38 FAW 50th Anniversary Brochure
  38. ^ a b FAW-Volkswagen Takes over Chengdu FAW FAW Official Site, Mar 30, 2009
  39. ^ Page 31 FAW 50th Anniversary Brochure
  40. ^ a b Deutz (Dalian) Engine Starts Operation FAW Official Site, Sep 18, 2007
  41. ^ Page 21 FAW 50th Anniversary Brochure
  42. ^ Page 23 FAW 50th Anniversary Brochure
  43. ^ About FAW > Key Events FAW Official Site
  44. ^ a b Page 17 FAW 50th Anniversary Brochure
  45. ^ Page 19 FAW 50th Anniversary Brochure
  46. ^ Page 18 FAW 50th Anniversary Brochure
  47. ^ Page 12 FAW 50th Anniversary Brochure
  48. ^ Page 13 FAW 50th Anniversary Brochure
  49. ^ a b c d e f FAW Group (2008). "FAW Toyota" (in English). http://www.faw.com/international/toyota.jsp. Retrieved 05/01/2011. 
  50. ^ Page 39 FAW 50th Anniversary Brochure
  51. ^ a b FAW's Xiali Division Launches New C1 Hatchback in Russia FAW Official Site, Jun 11, 2007
  52. ^ "Daihatsu to Dissolve its Joint Business for Body Parts Manufacturer in Jilin City, China". Daihatsu Motor Co. Ltd. 2010-01-07. http://www.daihatsu.com/news/n2010/10010701/index.html. Retrieved 2011-01-12. 
  53. ^ a b c Page 9 FAW 50th Anniversary Brochure
  54. ^ Page 14 FAW 50th Anniversary Brochure
  55. ^ a b Page 16 FAW 50th Anniversary Brochure
  56. ^ a b Page 15 FAW 50th Anniversary Brochure
  57. ^ Tianjin FAW Toyota Launches New Plant and Corolla FAW Official Site, May 30, 2007
  58. ^ a b Page 25 FAW 50th Anniversary Brochure
  59. ^ "FAW-GM Increases Capacity, Having No Plan to Introduce GMC Yet". ChinaAutoWeb.com. http://chinaautoweb.com/2010/09/faw-gm-increases-capacity-having-no-plan-to-introduce-gmc-yet/. 
  60. ^ a b c Toyota Motor China Investment Co. By: Treece, James B. Automotive News, 5/14/2007 Supplement, Vol. 81
  61. ^ a b c FAW Initiates 100,000-unit Light Truck Engineering Project in Harbin FAW Official Site, Jun 4, 2009
  62. ^ Page 37 FAW 50th Anniversary Brochure
  63. ^ a b Ready consumer cash fueling robust sales chinadaily.com.cn, 2010-10-25
  64. ^ a b FAW Builds up Dalian New-energy Bus Plant FAW Official Site, Jun 24, 2009
  65. ^ Innovation FAW Official Site
  66. ^
  67. ^ Sichuan FAW-Toyota Relocates Chengdu Plant FAW Official Site, Jul 16, 2008
  68. ^ FAW Group and VW AG Joint to Build up New Chengdu Plant FAW Official Site, May 12, 2009
  69. ^ a b c Home > About Us > Company Introduction > TOYOTA Motor Co., LTD. Tianjin FAW Toyota Official Site
  70. ^ Tianjin FAW Toyota to Launch New Engine Plant FAW Official Site, Apr 20, 2007

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