Apr. 29, 2024
Transportation
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China FAW Group Corp., Ltd. (First Automobile Works) is a Chinese state-owned automobile manufacturer headquartered in Changchun, Jilin.[5] Founded on 15 July 1953,[6][7] it is currently the second largest of the "Big Four" state-owned car manufacturers of China, together with SAIC Motor, Dongfeng Motor Corporation and Changan Automobile.[8]
The company produces and sells vehicles under its own branding, such as Hongqi, Bestune (Benteng) as well as under foreign-branded joint ventures such as FAW-Toyota and FAW-Volkswagen (Volkswagen, Audi, Jetta).
Its principal products are automobiles, buses, light, medium and heavy-duty trucks,[9] and auto parts.[10] FAW became China's first automobile manufacturer when it unveiled the nation's first domestically produced passenger car, the Hongqi, in 1958.[11]
As a state-owned enterprise of China, FAW Group is controlled and managed by SASAC, which under Chinese law performs the functions of an investor.[12]
The company has three publicly traded subsidiaries: FAW Jiefang Group Co., Ltd. (SZSE: 000800), Changchun FAWAY Automobile Components Co., Ltd. (SSE: 600742) and Qiming INFORMATION TECHNOLOGY Co., Ltd. (SZSE: 002232).[13]
History
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FAW Group Corporation Main Building First Automobile Works' first products Logo used between 2000 and 2022First Automobile Works broke ground on its first factory in 1953 (the first year of the first five-year plan),[14][9] and produced its first product, the Jiefang CA-10 truck (based on the Soviet ZIS-150) in 1956.[15]
Soviet Russia lent assistance during these early years providing technical support, tooling, and production machinery.[14] Before the first factory opened, 39 Chinese FAW employees traveled to the Stalin Truck Factory for instruction in truck production.[15] Operations were conducted under Soviet direction, and the USSR is even credited with choosing Changchun as the location for the first FAW facility.[16]
First Automobile Works initially made only commercial trucks,[9] but started producing passenger cars in 1958.[15] These vehicles, Hongqi luxury sedans, were the first domestically produced Chinese automobiles.[15] Made primarily for the party elite, the design changed little over their thirty-year production run.[17] Following this, FAW's Audi products are the traditionally favoured choice for ranking Chinese state officials.[18]
The First Automobile Works "winged 1" badge is derived from the Chinese 一汽 ("一" meaning "one" and "汽", from "汽车" meaning "automotive") and depicts a hawk spreading its wings, 一 (1).[19] The logo was introduced in 1964.[20]
During the Third Front campaign to develop strategic industries in China's rugged interior to prepare for potential invasion from the United States or the Soviet Union, the First Automobile Works transferred a third of its workforce to develop the Second Automobile Works.[21]: 202–204
In 1992, the name First Automobile Works was changed to FAW Group Corporation.[19]
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.[22]
Volkswagen was the first foreign partner for FAW, but others soon followed. The company acquired 50% ownership of Tianjin Automotive Xiali in September, 2002, and renamed the brand FAW Tianjin.[23] As a result, FAW ended up with Toyota as a foreign joint venture partner.[24] FAW established a joint venture with General Motors in 2009[25] and has joint ventures with a handful of other foreign companies as well.
The company 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.[26] In 2010, the 2.56 million units sold 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.[27] It produced 2.6 million vehicles in 2011, the third-largest output of any China-based company.[28] While it retained its third place rank, the number of whole vehicles produced in 2012 slowed to 2.3 million.[29] Passenger cars made up a relatively scant 64% of total production that year.[29]
In July 2021, FAW transferred 49% of the shares of FAW Haima to Hainan Development Holdings Co., Ltd. (Hainan Holdings) at no charge. Haima Automobile holds 51% of the shares in FAW Haima, while Hainan Holdings hold 49% of the shares.[30]
Brands and products
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FAW sold products under at least ten different brands including its own, but most of its brands has been discontinued or consolidated into Hongqi, Jiefang and Bestune brand currently.
Hongqi
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Hongqi is a Chinese luxury car marque owned by the automaker FAW Group. Hongqi was launched in 1958, making it the oldest Chinese passenger car marque. In Chinese, hongqi means "red flag."
Jiefang
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Jiefang is the medium and heavy trucks brand of FAW Group. The first truck rolled off of the lines in 1956, which was the first ever-built truck by the People's Republic of China.
Jiefang became a subsidiary on 18 January 2003 with two subsidiaries of its own, Qingdao Truck Division and FAW Trading Company, it is one make of Jiefang branded trucks.[31]
Jiefang J7
Jiefang J6P
Bestune (formerly Besturn)
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Bestune was established on August 18, 2006,[32] It may also be known as Ben Teng.[33] It serves as the passenger car brand in FAW Group.
FAW discontinued brands
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Joint ventures
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Created in 2003,[40] FAW operates this joint venture with Japanese automaker Toyota through Tianjin FAW. Key subsidiaries include:
Operates a passenger car production base in the Nansha Economic Development District of Guangzhou, Guangdong province.[41]
Operates a passenger car production base in the Chenghua District of Sichuan province and another in Changchun, Jilin province.[41] As of 2008, its 10,000 units/year capacity production base in Changchun makes the Toyota Prius and the Toyota Land Cruiser. The other production base it controls may make buses.[42]
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.[42]
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.[42]
FAW-Volkswagen Automobile Co Ltd
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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.[43] It manufactures Audi and Volkswagen-branded automobiles for sale in China.[44]
This subsidiary of FAW's joint venture with VW controls production bases in Chengdu, Sichuan province.[45]
A joint venture with General Motors that mainly produces Jiefang light-duty trucks,[46] this JV includes the Harbin Light Vehicle and FAW Hongta Yunnan factories.[47]
This joint venture with General Motors mainly produces Jiefang light-duty trucks.[46]
Silk-FAW Automotive
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This joint venture with US based design firm Silk EV produces high end luxury hybrid sports cars.[48]
Subsidiaries and divisions
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FAW Toyota CrownFAW has at least 28 wholly owned subsidiaries and controlling shares in 18 partially owned subsidiaries. These include the wholly owned subsidiaries FAW Jiefang Truck Co Ltd and FAW Bus and Coach Co Ltd, and the publicly traded FAW Car Co Ltd, Tianjin FAW Xiali Automobile Co Ltd, and Changchun FAWAY Automobile Components Co Ltd.[9]
The following is an incomplete list.
Vehicle-producing Divisions
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Chengdu FAW Automobile Co Ltd
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Chengdu FAW produces Huaxi brand light and medium buses based on the Toyota Coaster.[49] Originally the Sichuan Bus Company, it became a partially-owned subsidiary in 2002 after acquisition by FAW.[49]
A Besturn B70 produced by FAW Car CompanyFAW Car Co Ltd
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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,[50] this publicly listed subsidiary produces cars, transmissions,[50] and engines.[51] It has a production base in western Changchun, Jilin province.[52]
FAW Bus and Coach
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Founded in 1959, it produces buses sold under the Taihu brand.
FAW Hongta Yunnan Automobile Co Ltd
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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.[53] This factory was included in the FAW-GM Light Duty Commercial Vehicle joint venture.[47]
FAW Hongta Lanjian Jiefang
FAW Hongta T340
FAW Jilin Automobile Co Ltd
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Founded in 1980, this company became a wholly owned subsidiary of FAW Group in either 1987[54] or March 1991.[55] It manufactures compact trucks and buses originally based on Suzukis. More recently, Jilin participated in a five-year-long joint venture with Daihatsu.[56]
FAW Passenger Vehicle Co
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As of 2012, this company has two factories and some of the products it produces carry the Oley brand.[34]
FAW Sichuan Automotive Co Ltd
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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.[57]
The Harbin Light Vehicle Factory
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Established in 1965, this FAW Group subsidiary made military vehicles until partnering with FAW in the 1990s.[58] It has since produced pickups, Jiefang trucks, and mini-vehicles (small trucks and vans that see commercial use).[58] This factory was included in the FAW-GM Light Duty Commercial Vehicle joint venture.[47]
Other divisions
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Minor joint ventures
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Production bases and facilities
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FAW has production bases located in 14 provinces throughout China[5] including the provinces of Guangdong,[73] Hainan,[9] Heilongjiang,[9] Jilin,[9] Liaoning,[74] Shandong,[9] Sichuan,[9] and Yunnan.[9] Non-provincial locales include Pudong[36] and Tianjin.[9]
Changchun
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FAW headquarters are located in Changchun, Jilin province, and operations here include an R&D and test center.[75] Additionally, FAW has two production bases here—one produces for the FAW-Volkswagen joint venture and the other makes self-branded autos.[76]
Chengdu
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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.[77]
FAW Jiefang Truck Co Ltd also has a production base here.[36]
Another site in Chengdu produces cars for FAW-Volkswagen,[45] and a second VW production base is, as of 2009, scheduled to be built in the city.[78]
Dalian
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A Hybrid electric bus produced by FAW Bus and Coach Co Ltd in DalianThe Dalian division of FAW Bus and Coach Co Ltd manufactures Jiefang and Yuan Zheng brand medium and large-size buses in a production base in Dalian, Liaoning province.[38] 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.[74]
Another Dalian base produces engines for commercial trucks, construction equipment, and agricultural machinery.[65]
Foshan
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As of 2010, 150,000 units/year production capacity FAW-VW production base will soon be built in this Guangdong province city.[73]
Hainan
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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.[37] FAW Hainan Automobile Co Ltd operates FAW's southernmost production facility here.[37]
A production base on the island manufactures license-built Mazdas.
Harbin
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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.[58]
Shanghai
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FAW Jiefang Truck Co Ltd has a production base in Pudong New Area in Shanghai.[36]
Tianjin
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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.[79] Plant No. 1 is in Yangliuqing Town, Xiqing District,[79] and plants No. 2 and 3 are located in the Tianjin Economic and Technological Development Zone and began production in 2007.[79] Tianjin FAW Toyota Motor Co Ltd also has an engine plant in Tianjin.[80]
Qingdao
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A FAW Jiefang Truck Co Ltd medium, heavy, and severe-duty truck production base is located in Qingdao, Shandong province.[36]
Export and overseas sales
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A FAW CA1031 truck in RussiaWhile primarily manufacturing products for sale in its home market, FAW began exports to foreign countries in 1957 with the sale of three commercial trucks to a businessperson in Jordan.[15] FAW has shipped its products to more than eighty nations,[5] including Egypt,[81] Iraq,[82] Kenya,[82] Mexico,[83] Myanmar,[84] Pakistan,[82] Russia,[68] South Africa, Iran,[85][86] Zimbabwe and Uruguay.[54]
NAZ-Nakhchivan Automobile Plant has assembled FAW cars in Nakhchivan, Azerbaijan, since 2020.[citation needed]
See also
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References
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FAW first established a presence in South Africa in 1994, becoming a local frontrunner in this highly competitive vehicle industry. Our local founder and successful businessman, Richard H. Leiter, recognised the inherent value in Chinese brand trucks. Realising that the FAW brand was based on a unique level of durability and longevity unrivalled by other Asian brands. The FAW SA brand and its acclaimed products have been in South Africa for more than 25 years, and has firmly entrenched itself in the local transport industry landscape. Since FAW first established a local presence in South Africa it has grown from very humble beginnings to a multimillion Rand undertaking. One of the first units sold in South Africa is still running today and carries the original name – Jiefang – and has clocked over 1,5 million kilometres – unmatched proof of the FAW brand’s durability. FAW Vehicle Manufacturers SA (PTY) Ltd is committed to offering vehicles, which are engineered, developed and rigorously tested to meet the harsh operating conditions in Africa.
In addition to its excellence in the trucking business, FAW also understands its corporate social responsibility as evidenced by its consistent investment into the South African economy such as The manufacturing plant, built at a cost of R600 million, is based in Coega in the Eastern Cape.
South Africa serves as the hub, central to our fast growing local market and exports into Africa and boasts an extensive dealer network, service centres with steady, reliable parts supplies, and highly trained sales and service personnel. FAW is committed to ongoing expansion into the emerging markets of Mozambique, Zambia, Zimbabwe, Malawi, Namibia and Angola in order to entrench FAW Vehiicle Manufacturers SA (PTY) Ltd as a major distribution hub for trucks and parts on the African subcontinent.
FAW Vehicle Manufacturers SA (PTY) Ltd is a major local and contemporary brand that offers a product range that is hardy, reliable and affordable, offering competitive pricing without compromising on quality in any way. This is made possible because our policy of simplifying the mechanics of our vehicles. The company prides itself on providing value for money and this, in combination with being a world-class product, has made FAW Vehicle Manufacturers SA (PTY) Ltd one of this country’s frontrunners in the truck industry
Contact us to discuss your requirements of brand new tractor FAW. Our experienced sales team can help you identify the options that best suit your needs.
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