FAW Group Corporation is a Chinese state-owned automotive manufacturing company headquartered in Changchun, Jilin, China.^[4] Its principal products are automobiles; buses; light, medium, and heavy-duty trucks;^[5] and auto parts.^[6]FAW became China’s first automobile manufacturer when it unveiled the nation’s first domestically produced passenger car, the Hong Qi, in 1958.^[7]

FAW is one of the “Big Four” Chinese automakers alongside Changan Automobile, Dongfeng Motor, and SAIC Motor.^[8]In 2014, the company ranked third in terms of output making 2.7 million whole vehicles.^[9]

The company has three publicly traded subsidiaries: FAW Car Company (SZSE: 000800), Tianjin FAW Xiali Automobile Co Ltd (SZSE: 000927), and Changchun FAWAY Automobile Components Co Ltd (SSE: 600742).

History

In 1953, the first year of the first five-year plan,^[10] First Automobile Works broke ground on its first factory^[5] although it didn’t produce its first product, the 4-ton Jie Fang CA-10 truck (based on the Russian ZIS-150), until 1956.^[11]

Soviet Russia lent assistance during these early years providing technical support, tooling, and production machinery.^[10]Before its first factory opened, 39 Chinese FAW employees traveled to the Stalin Truck Factory for instruction in truck production.^[11] Operations were conducted in the Soviet mold, and Russia is even credited with choosing Changchun as the location for the first FAW vehicle-manufacturing facility.^[12] The city boasted an industrial base left over from Japanese occupation and, situated in northeastern China, is near Russia.^[13]

First Automobile Works initially made only commercial trucks^[5] but started producing passenger cars in 1958.^[11] These vehicles, the Hong Qi luxury sedans, were the first domestically produced Chinese automobiles.^[11] Only for party elite, the design changed little over their thirty-year production run.^[14] Following this, FAW’s Audi products are the traditionally favored choice for ranking Chinese state officials.^[15] These Audis are, alongside Beijing Benz Mercedes Benzes some of the only Western luxury cars to have gained popularity in the Chinese market.^[16]

In 1992, the name First Automobile Works was changed to China FAW Group Corporation.^[17]

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.^[18] Other, failed foreign-Chinese joint ventures preceding FAW-VW are what is now Beijing Benz (with US partner AMC) and the failed Guangzhou Peugeot Automobile Company.^[19]

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.^[20] As a result, FAW ended up with Toyota as a foreign joint venture partner.^[21] FAW established a joint venture with General Motors in 2009^[22] and has joint ventures with a handful of other foreign companies as well.^{[citation needed]}

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.^[23] 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.^[24] It produced 2.6 million vehicles in 2011, the third-largest output of any China-based company.^[25] While it retained its third place rank, the number of whole vehicles produced in 2012 slowed to 2.3 million.^[26] Passenger cars made up a relatively scant 64% of total production that year.

Brands

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

Besturn, established on August 18, 2006,^[27] It may also be known as Ben Teng.^[28]
Dario^[29]
Haima, a brand for Mazda-based vehicles built in Hainan
Hong Qi (meaning “Red Flag“^[14])
Jiaxing (formerly Huali), a brand of Tianjin FAW Xiali Automobile Company, a car manufacturing subsidiary of FAW
Jie Fang^{[citation needed]}
Jilin, a maker of mini-vehicles, small trucks and vans that see commercial use, in Jilin City, Jilin province^[30]
Junpai
Oley,^[31] a new brand that will sell youth-oriented cars beginning in March 2012
Pengxiang^[32]
Shenli^[33]
Yuan Zheng^[34]
Tianjin Xiali^[29]

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

Audi
General Motors
Mazda (while FAW does not have a fully fledged manufacturing joint venture with this Japanese automaker, it does make some of the Mazda-branded autos sold in China)^[35]
Toyota^[29]
Volkswagen

Production bases and facilities

FAW has production bases located in 14 provinces throughout China^[4] including the provinces of Guangdong,^[61] Hainan,^[5] Heilongjiang,^[5] Jilin,^[5] Liaoning,^[62]Shandong,^[5] Sichuan,^[5] and Yunnan.^[5] Non-provincial locales include Pudong^[32] and Tianjin.

Joint ventures

Chengdu Araco Automobile Trim Part Co Ltd

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

Chengdu FAW Co Ltd

This subsidiary of FAW’s joint venture with VW controls production bases in Chengdu, Sichuan province.^[66]

FAWER Automotive Component Co Ltd

A joint venture operated by this company with American auto-parts maker Visteon, FAWER Visteon Climate Control System (Changchun) Co Ltd, produces air-conditioning units at a facility in the Changchun Automotive Development Zone and was established in 1995.^[70]

FAW-Volkswagen Automobile Co Ltd

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.^[71] It manufactures Audi and Volkswagen-branded automobiles for sale in China.^[72]

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.^[73]

FAW Huali (Tianjin) Automobile Co Ltd

A joint venture with Tianjin Automotive Industry (Group) Co Ltd that, since 2003,^[74] has manufactured Daihatsu models sold under the brand name Dario.^[29] 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.^[74]

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.^[75]

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.^[74]

FAW-GM Light Duty Commercial Vehicle Co Ltd

This joint venture with General Motors mainly produces Jie Fang light-duty trucks.^[44]

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.^[76]

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.^[76] 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.^[74]

Tianjin FAW Toyota Motor Co Ltd

Created in 2003,^[58] this equally owned joint venture with Toyota, as of 2007, has one passenger vehicle production base in the Xiqing District of Tianjin^[76] and two in the Tianjin Economic and Technological Development Zone.^[58] 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.^[74]

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.^[74]