|Founded||July 15, 1953 (Changchun)|
|Key people||Xu Jianyi (Chairman)
Xu Xianping (President)
|Revenue||RMB 292.7 billion (2010)|
FAW Group Corporation is a Chinese state-owned automotive manufacturing company headquartered in Changchun, Jilin, China. Its principal products are automobiles; buses; light, medium, and heavy-duty trucks; and auto parts. FAW became China's first automobile manufacturer when it unveiled the nation's first domestically produced passenger car, the Hong Qi, in 1958.
FAW is one of the "Big Four" Chinese automakers, alongside Chang'an Motors, Dongfeng Motor, and SAIC Motor. The company ranked 3rd in terms of extent of output making 3.6 million whole vehicles. Passenger cars made up a relatively scant 64% of total production. Consumer offerings may account for an even smaller percentage; the number of cars counted as passenger vehicles likely includes light commercial trucks and vans.
In 1953, the first year of the first five-year plan, First Automobile Works broke ground on its first factory although it didn't produce its first product, the 4-ton Jie Fang CA-10 truck (based on the Russian ZIS-150), until 1956.
Soviet Russia lent assistance during these early years, providing technical support, tooling, and production machinery. Before its first factory opened, 39 Chinese FAW employees traveled to the Stalin Truck Factory for instruction in truck production. Operations were conducted in the Soviet mold, and Russia is even credited with choosing Changchun as the location for this new vehicle-manufacturing base. The city boasted an industrial base left over from Japanese occupation and, situated in northeastern China, is near Russia.
First Automobile Works initially made only commercial trucks but started producing passenger cars in 1958. These vehicles, the Hong Qi luxury sedans, were the first domestically produced Chinese automobiles. Only for party elite, the design changed little over their thirty-year production run. Following this, FAW's Audi products are the traditionally favored choice for ranking Chinese state officials. 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.
In 1992, the name First Automobile Works was changed to China FAW Group Corporation.
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. 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.
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. As a result, FAW ended up with Toyota as a foreign joint venture partner. FAW established a joint venture with General Motors in 2009 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. 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. It produced 2,601,300 vehicles in 2011, the third-largest output of any China-based company.
FAW sells products under at least ten different brands including its own. The following is an incomplete list.
- Besturn, established on August 18, 2006, It may also be known as Ben Teng.
- Haima, a brand for Mazda-based vehicles built in Hainan
- Hong Qi (meaning "Red Flag")
- Jiaxing (formerly Huali), a brand of Tianjin FAW Xiali Automobile Company, a car manufacturing subsidiary of FAW
- Jie Fang
- Jilin, a maker of mini-vehicles, small trucks and vans that see commercial use, in Jilin City, Jilin province
- Oley, a new brand that will sell youth-oriented cars beginning in March 2012
- Yuan Zheng
- Tianjin Xiali
Its foreign joint ventures also manufacture the following brands for sale in the Chinese market:
- 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)
Subsidiaries and divisions
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.
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.
- Chengdu FAW Automobile Co Ltd
Becoming a partially owned subsidiary in 2002 after the acquisition of the Sichuan Bus Company, 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.
- Dalian Diesel Engine Co
- FAW Car Co Ltd
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, this publicly listed subsidiary, as of 2003, produces a Hong Qi luxury sedan, other car models, transmissions, and engines. It has a production base in western Changchun, Jilin province.
- FAW Forging Co Ltd
- FAW Bus and Coach
- FAW-GM Light Duty Commercial Vehicle Co Ltd
- FAW Foundry Co Ltd
This wholly owned subsidiary produces cast auto parts including engine blocks.
- FAW Hainan Automobile Co Ltd
- 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. This factory was included in the FAW-GM Light Duty Commercial Vehicle joint venture.
- FAW Import and Export Corporation (FAWIE)
Established as a subsidiary in 1984, FAWIE is the international sales and marketing division of FAW Group. Overseas joint ventures and technical cooperation with foreign countries are also within its remit. This subsidiary has established overseas production facilities in Pakistan, South Africa, Tanzania, Ukraine, Vietnam, and Russia.
- FAW Jilin Automobile Co Ltd
Founded in 1980, this company became a wholly owned subsidiary of FAW Group in either 1987 or March 1991. It manufactures compact trucks and buses originally based on Suzukis. More recently, Jilin participated in a five-year-long joint venture with Daihatsu.
- 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, it is one make of Jie Fang branded trucks. As of 2003, FAW Jie Fang Truck utilizes production lines dating from 1956.
- FAW Passenger Vehicle Co
As of 2012, this company has two factories and some of the products it produces carry the Oley brand.
- FAW Jiaxin Heat Treatment and Electroplate Technology Co Ltd
This wholly owned subsidiary designs and manufactures complete heat treatment and electroplating systems.
- 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. A vehicle-monitoring division of its GPS research & development arm used a system purchased from Avaya to, "monitor over 3,000 vehicles throughout China".
- 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. 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.
- FAW Tianjin Xiali Automobile Co Ltd
- FAW Tool Co Ltd
This wholly owned subsidiary specializes in development and production of non-standard tools for automotive manufacture.
- FAW Tool and Die Co Ltd
Manufacturing automotive dies is the main responsibility of this wholly owned subsidiary.
- The Harbin Light Vehicle Factory
Established in 1965, this FAW Group subsidiary made military vehicles until partnering with FAW in the 1990s. It has since produced pickups, Jie Fang trucks, and mini-vehicles (small trucks and vans that see commercial use). This factory was included in the FAW-GM Light Duty Commercial Vehicle joint venture.
Production bases and facilities
FAW has production bases located in 14 provinces throughout China including the provinces of Guangdong, Hainan, Heilongjiang, Jilin, Liaoning, Shandong, Sichuan, and Yunnan. Non-provincial locales include Pudong and Tianjin.
FAW headquarters are located in Changchun, Jilin province, and operations here include an R&D and test center. Additionally, FAW has two production bases here—one produces for the FAW-Volkswagen joint venture and the other makes self-branded autos.
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.
FAW Jie Fang Truck Co Ltd also has a production base here.
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. 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.
Another Dalian base produces engines for commercial trucks, construction equipment, and agricultural machinery.
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. FAW Hainan Automobile Co Ltd operates FAW's southernmost production facility here.
A production base on the island manufactures license-built Mazdas.
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.
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. Plant No. 1 is in Yangliuqing Town, Xiqing District, and plants No. 2 and 3 are located in the Tianjin Economic and Technological Development Zone and began producing in 2007. Tianjin FAW Toyota Motor Co Ltd also has an engine plant in Tianjin.
- Chengdu Araco Automobile Trim Part Co Ltd
- Chengdu FAW Co Ltd
- 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.
- 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. It manufactures Audi and Volkswagen-branded automobiles for sale in China.
- 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.
- FAW Huali (Tianjin) Automobile Co Ltd
A joint venture with Tianjin Automotive Industry (Group) Co Ltd that, since 2003, has manufactured Daihatsu models sold under the brand name Dario. 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.
- 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.
- 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.
- FAW-GM Light Duty Commercial Vehicle Co Ltd
- GS Motors SA de CV
- Guangzhou Toyota Motor Co
- 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. 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.
- Tianjin FAW Toyota Motor Co Ltd
Created in 2003, this equally owned joint venture with Toyota, as of 2007, has one passenger vehicle production base in the Xiqing District of Tianjin and two in the Tianjin Economic and Technological Development Zone. 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.
- 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.
- 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.
While primarily manufacturing products for sale in its home market, FAW has exported to many countries beginning in 1957 with the sale of three commercial trucks to a businessperson in Jordan.
FAW has had customers in more than 80 countries throughout the life of the company. Nations it has exported products to include Egypt, Iraq, Kenya, Mexico, Pakistan, Russia, South Africa, and Uruguay.
R&D and Innovation
FAW can look back on a successful 50-year history of innovation. According to FAW, innovation is the soul of its development and it is deeply fixed in the company's culture. The main R&D center of FAW is the test center in Changchun. In its R&D segment, FAW is especially focusing on the improvement of its engines, transmissions, axles, car bodies and automotive electronics. Therefore, FAW will invest USD 1.15 bn in product R&D in 2013. From 2000 to 2010, FAW increased its patent and utility model applications from zero to more than 400.
- "Executives". FAW Group Corporation. Retrieved 30 April 2012.
- "Financial Data". FAW Group Corporation. Retrieved 30 April 2012.
- FAW Today FAW's 50th Anniversary Brochure
- About FAW Profile FAW Official Site
- Products Components & Parts FAW Official Site
- Key Events, May 21, 1958/Aug. 1, 1958 FAW Official site
- New policy to encourage China's carmaker consolidation xinhuanet.com, 2010-02-22 10:27:20
- "2012年12月分车型前十家生产企业销量排名". China Association of Automobile Manufacturers (CAAM). 14 January 2013. Retrieved January 15, 2013.
- FAW Group Steps up Global Expansion FAW Official Site, Mar 27, 2007
- About FAW > Key Events FAW Official Site
- Richter, Frank-Jürgen (2000). The dragon millennium: Chinese business in the coming world economy. Greenwood Publishing Group. p. 70. ISBN 9781567203530.
- 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. p. 102. ISBN 9780521843829.
- For northeastern China location near Russia, see Richter, Frank-Jürgen (2000). The dragon millennium: Chinese business in the coming world economy. Greenwood Publishing Group. p. 70. ISBN 9781567203530.
- The home team economist.com, Nov 13th 2008
- Chinese public revved up over BMW, Benz on gov't car list xinhuanet.com, 2009-06-13
- SHIROUZU, NORIHIKO (JUNE 7, 2011), "Chinese Begin Volvo Overhaul", Wall Street Journal, retrieved JUNE 9, 2011
- About FAW > Corporate Trademark FAW Official Site
- Theme and variations economist.com, Nov 13th 2008
- For Beijing Benz, see JV renamed Beijing Benz-DaimlerChrysler chinadaily.com.cn, 2004-12-07
- For Guangzhou Peugeot Automobile Company, see Changing lanes in China: foreign direct investment, local government, and auto sector development (page 137) Eric Thun. Cambridge University Press, 2006. 326 pages.
- World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. 2006. p. 232.
- Anil K. Gupta, Toshiro Wakayama, Srini Rangan (2012). Global Strategies for Emerging Asia. John Wiley & Sons. p. 135. ISBN 9781118217979.
- GM, China FAW Set Up Commercial-Vehicle Joint Venture Bloomberg.com, August 30, 2009
- For 2008 sales figures, see 2008 Annual Report FAW Official Site
- For 2009 ranking as largest Chinese machinery company, see FAW Ranks 1st among Top 500 Chinese Machinery Corporations FAW Official Site, Aug 7, 2009
- For 2009 ranking as 2nd largest Chinese automaker, see SAIC expects rosy FY profit figures China Daily, Jan 7, 2010
- For 2010 sales figures, see China Car Market 101: Who Makes All Those 18 Million Cars? thetruthaboutcars.com, January 19, 2011
- For 2010 ranking as 3rd largest Chinese vehicle manufacturer, see Sales surge, but congestion concerns rise people.com.cn, November 15, 2010
- For FAW Xiali as 7th most-popular car in 2010, see Top 10 Best-Selling Sedans and SUVs in 2010 chinaautoweb.com, January 14, 2011
- "2011年前十家乘用车生产企业销量排名". China Association of Automobile Manufacturers (CAAM). 2012-01-20.
- About FAW > Key Events FAW Official Site
- Besturn B90 Sedan spotted out testing chinacartimes.com, October 27, 2010
- Page 33 FAW 50th Anniversary Brochure
- Home > About US > History FAW Jilin official site
- "Short Torque". China Daily. 2011-11-28.
- Page 34 FAW 50th Anniversary Brochure
- Page 40 FAW 50th Anniversary Brochure
- Page 32 FAW 50th Anniversary Brochure
- "Strife between FAW and Changan intensifies as Mazda 8 rolls off assembly line." globaltimes.cn, December 02 2010
- Page 26 FAW 50th Anniversary Brochure
- Page 38 FAW 50th Anniversary Brochure
- Page 31 FAW 50th Anniversary Brochure
- Deutz (Dalian) Engine Starts Operation FAW Official Site, Sep 18, 2007
- Page 17 FAW 50th Anniversary Brochure
- Page 19 FAW 50th Anniversary Brochure
- Page 18 FAW 50th Anniversary Brochure
- Page 12 FAW 50th Anniversary Brochure
- "FAW-GM Increases Capacity, Having No Plan to Introduce GMC Yet". ChinaAutoWeb.com.
- Page 13 FAW 50th Anniversary Brochure
- World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. 2006. p. 235.
- Page 39 FAW 50th Anniversary Brochure
- FAW's Xiali Division Launches New C1 Hatchback in Russia FAW Official Site, Jun 11, 2007
- FAW Group Tapping Russian Market FAW Official Site, Mar 28, 2007
- FAW Exported Mini Vans to Uruguay FAW Official Site, Jan 22, 2008
- World of Cars 2006·2007. Warsaw, Poland: Media Connection Sp. z o.o. 2006. pp. 231–232.
- "Daihatsu to Dissolve its Joint Business for Body Parts Manufacturer in Jilin City, China". Daihatsu Motor Co. Ltd. 2010-01-07. Retrieved 2011-01-12.
- Page 9 FAW 50th Anniversary Brochure
- Page 14 FAW 50th Anniversary Brochure
- Page 25 FAW 50th Anniversary Brochure
- Page 16 FAW 50th Anniversary Brochure
- Home > About Us > Company Introduction > TOYOTA Motor Co., LTD. Tianjin Xiali Official Site
- Page 15 FAW 50th Anniversary Brochure
- FAW Initiates 100,000-unit Light Truck Engineering Project in Harbin FAW Official Site, Jun 4, 2009
- Ready consumer cash fueling robust sales chinadaily.com.cn, 2010-10-25
- FAW Builds up Dalian New-energy Bus Plant FAW Official Site, Jun 24, 2009
- Innovation FAW Official Site
- For FAW-VW production base, see FAW-Volkswagen Launches Second Jetta Production Location FAW Official Site, Jul 30, 2007
- For self-branded production base, see FAW Car's Second Plant Starts Operation FAW Official Site, Jul 21, 2010
- Sichuan FAW-Toyota Relocates Chengdu Plant FAW Official Site, Jul 16, 2008
- FAW-Volkswagen Takes over Chengdu FAW FAW Official Site, Mar 30, 2009
- FAW Group and VW AG Joint to Build up New Chengdu Plant FAW Official Site, May 12, 2009
- Home > About Us > Company Introduction > TOYOTA Motor Co., LTD. Tianjin FAW Toyota Official Site
- Tianjin FAW Toyota to Launch New Engine Plant FAW Official Site, Apr 20, 2007
- "FAWER Visteon Expands Automotive Climate Systems Manufacturing Operation in Changchun, China". Visteon Corp. 22 June 2010. Retrieved 01/04/2012.
- Page 21 FAW 50th Anniversary Brochure
- Page 23 FAW 50th Anniversary Brochure
- About FAW > Key Events FAW Official Site
- FAW Group (2008). "FAW Toyota". Retrieved 05/01/2011.
- Tianjin FAW Toyota Launches New Plant and Corolla FAW Official Site, May 30, 2007
- Toyota Motor China Investment Co. By: Treece, James B. Automotive News, 5/14/2007 Supplement, Vol. 81
- Page 37 FAW 50th Anniversary Brochure
- About FAW > Key Events FAW Official Site
- New China-made Cars Launch at Egypt Market FAW Official Site, Jul 3, 2009
- FAW 50th Anniversary Brochure
- FAW Exports 920 Xiali cars to Mexico FAW Official Site, Jun 25, 2009
- FAW¡¯s Jiefang Brand Cement Mixers Popular in South Africa FAW Official Site, Jun 14, 2007
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