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FAW Group

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China FAW Group
Corporation Limited
Native name
Trung Quốc đệ nhất ô tô tập đoàn công ty hữu hạn
Company typeState-owned enterprise
IndustryAutomotive
Founded15 July 1953;71 years ago(15 July 1953)
Headquarters,
Area served
East Asia(exceptTaiwan,South Korea,Japan),Southeast Asia,South Asia,West Asia,Eastern Europe,andAfrica
Key people
Qiu Xiandong (Chairman)
[1]
Liu Yigong (President)
[2]
ProductsAutomobiles
Buses
Trucks
Automotive components
Production output
3,500,000 units (2021)[3]
RevenueRMB292.7 billion (2010)[4]
Number of employees
132,000 (2007)
Divisions
Subsidiaries
List
Chinese name
Simplified ChineseĐệ nhất ô tô tập đoàn
Traditional ChineseĐệ nhất ô tô tập đoàn
Literal meaningFirst Automobile Group
Abbreviation
Simplified ChineseTrung Quốc một hơi
Traditional ChineseTrung Quốc một hơi
Websitefaw

China FAW Group Corp., Ltd.(First Automobile Works) is a Chinesestate-ownedautomobile manufacturer headquartered inChangchun,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 withSAIC Motor,Dongfeng Motor CorporationandChangan Automobile.[8]

The company produces and sells vehicles under its own branding, such asHongqi,Bestune(Benteng) as well as under foreign-branded joint ventures such asFAW-ToyotaandFAW-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 bySASAC,which under Chinese law performs the functions of an investor.[12]

The company has threepublicly tradedsubsidiaries:FAW JiefangGroup Co., Ltd. (SZSE:000800), Changchun FAWAY Automobile Components Co., Ltd. (SSE:600742) and Qiming INFORMATION TECHNOLOGY Co., Ltd. (SZSE:002232).[13]

History[edit]

First Automobile Works' first products, 1956

First Automobile Works broke ground on its first factory in 1953 (the first year of the firstfive-year plan),[14][9]and produced its first product, the Jiefang CA-10 truck (based on the SovietZIS-150) in 1956.[15]

Soviet Russialent assistance during these early years providing technical support, tooling, and production machinery.[14]Before the first factory opened, 39 Chinese FAW employees traveled to theStalin Truck Factoryfor instruction in truck production.[15]Operations were conducted under Soviet direction, and the USSR is even credited with choosingChangchunas 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,Hongqiluxury 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 rankingChinese stateofficials.[18]

The First Automobile Works "winged 1" badge is derived from the Chinese một hơi ( "Một" meaning "one" and "Hơi", from "Ô tô" meaning "automotive" ) and depicts a hawk spreading its wings, một (1).[19]The logo was introduced in 1964.[20]

During theThird Front campaignto 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 withVolkswagenin 1990 saw it become the second Chinese auto company to develop a strong cooperative relationship with a foreign counterpart.SAICwas the first, in 1984 and also withVW.[22]

Volkswagenwas 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 brandFAW Tianjin.[23]As a result, FAW ended up withToyotaas a foreign joint venture partner.[24]FAW established a joint venture withGeneral Motorsin 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]


As of 2024, many other brands have been liquidated, leaving only Hongqi and Bestune as passenger car brands.

Brands and products[edit]

FAW sold products under at least ten different brands including its own, but most of its brands has been discontinued or consolidated intoHongqi,JiefangandBestunebrand currently.

Hongqi[edit]

Hongqiis 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,hongqimeans "red flag."

Jiefang[edit]

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 thePeople'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]

Bestune (formerly Besturn)[edit]

Bestune was established on August 18, 2006,[32]It may also be known asBen Teng.[33]It serves as the passenger car brand in FAW Group.

FAW discontinued brands[edit]

  • FAW Haima(divested), founded in January 1992 as Hainan Mazda Motor, a joint venture between the Hainan provincial government andMazdato produce Mazda models for sale in China. In 2006, Mazda's share of Hainan Mazda was acquired by FAW Group, and the company became a subsidiary of FAW. In July 2021, FAW transferred 49% of the shares of FAW Haima to Hainan Development Holdings Co., Ltd. (Hainan Holdings) at no charge.
  • FAW Tianjin(discontinued), Junpai, Huali, Xiali (discontinued), Jia xing (discontinued)
  • FAW Jilin(discontinued), a maker of mini-vehicles, small trucks and vans under the Senia and Jiabao brands.
  • Oley(discontinued),[34]a newer brand that was targeting young buyers. Defunct in 2015.
  • SiTech(discontinued), a brand that focuses on electric vehicles. Established in 2018 with the first car calledSiTech DEV1launched.[35]
  • Pengxiang[36]
  • Shenli[37]
  • Yuan Zheng[38]
  • FAC (marque),FAW Lingyuan
  • Baolong
FAW group sales by brand[39]
Year Total FAW Group FAW Jiefang FAW Car FAW Haima FAW Jilin FAW Tianjin
Hongqi Jiefang Bestune Oley Haima Senia Jiabao Junpai Xiali
2010 1,038,290 193 394,739 132,212 - 140,332 48,499 70,795 - 245,920
2011 907,337 2 280,104 112,816 - 156,212 41,090 62,555 - 250,153
2012 718,327 127 230,026 72,484 6,545 131,642 41,270 49,672 - 183,976
2013 723,969 2,981 276,956 121,254 6,300 113,446 40,424 39,554 - 129,392
2014 627,006 2,708 239,450 179,453 6,933 90,426 17,666 17,776 4,041 68,018
2015 505,849 5,044 178,300 147,897 1,936 70,938 14,159 22,705 29,308 35,541
2016 505,711 5,052 231,203 105,670 863 63,029 50,440 10,612 16,595 21,909
2017 572,862 4,702 317,445 116,472 186 39,369 62,290 5,308 17,598 9,482
2018 543,986 33,028 338,302 88,708 197 22,507 36,248 3,375 17,674 11,22
2019 589,832 100,166 352,702 120,193 discontinued 4,452 5,818 683 3,771 221
2020 779,403 200,338 492,622 83,391 2,936 discontinued discontinued
2021 846,803 300,638 454,426 77,218 14,521
2022 555,406 309,657 170,049 75,700 divested
2023 732,328 370,000 241,662 120,666

Joint ventures[edit]

FAW-Toyota[edit]

Created in 2003,[40]FAW operates this joint venture with Japanese automakerToyotathroughTianjin FAW.Key subsidiaries include:

Guangzhou Toyota Motor Co

Operates a passenger car production base in the Nansha Economic Development District ofGuangzhou,Guangdong province.[41]

TheToyota Land Cruiser Pradoproduced by Sichuan FAW Toyota Motor
Sichuan FAW Toyota Motor Co

Operates a passenger car production base in theChenghua DistrictofSichuan provinceand another inChangchun,Jilin province.[41]As of 2008, its 10,000 units/year capacity production base in Changchun makes theToyota Priusand theToyota Land Cruiser.The other production base it controls may make buses.[42]

Tianjin FAW Toyota Engine Co Ltd

This equally owned joint venture with Toyota makes engines at its production bases in theXiqing DistrictofTianjinand at theTianjin Economic and Technological Development Zone.Combined, both bases can produce 440,000 units annually.[42]

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.[42]

FAW-Volkswagen Automobile Co Ltd[edit]

Established in 1991, this large-scale automobile manufacturer is a joint venture between FAW Group andVolkswagen AGwhich, as of 2003, have ownership stakes of 60% and 40%, respectively.[43]It manufacturesAudiandVolkswagen-branded automobiles for sale in China.[44]

Chengdu FAW Co Ltd

This subsidiary of FAW's joint venture with VW controls production bases inChengdu,Sichuan province.[45]

FAW-GM[edit]

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]

FAW-GM Light Duty Commercial Vehicle Co Ltd

This joint venture withGeneral Motorsmainly produces Jiefang light-duty trucks.[46]

Silk-FAW Automotive[edit]

This joint venture with US based design firm Silk EV produces high end luxury hybrid sports cars.[48]

Subsidiaries and divisions[edit]

FAW Toyota Crown

FAW has at least 28 wholly owned subsidiaries and controlling shares in 18 partially owned subsidiaries. These include the wholly owned subsidiariesFAW JiefangTruck Co Ltd andFAW Bus and CoachCo Ltd, and the publicly tradedFAW 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[edit]

Chengdu FAW Automobile Co Ltd[edit]

Chengdu FAW producesHuaxibrand light and medium buses based on theToyota 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 Company

FAW Car Co Ltd[edit]

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]thispublicly listedsubsidiary produces cars, transmissions,[50]and engines.[51]It has a production base in westernChangchun,Jilin province.[52]

FAW Bus and Coach[edit]

Founded in 1959, it produces buses sold under theTaihubrand.

FAW Hongta Yunnan Automobile Co Ltd[edit]

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-builtDaihatsumodels.[53]This factory was included in theFAW-GM Light Duty Commercial Vehiclejoint venture.[47]

FAW Jilin Automobile Co Ltd[edit]

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 withDaihatsu.[56]

FAW Passenger Vehicle Co[edit]

FAW Group Corporation Main Building

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[edit]

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[edit]

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 theFAW-GM Light Duty Commercial Vehiclejoint venture.[47]

Other divisions[edit]

  • The 9th Industrial Machinery Design and Research Institute- Wholly owned subsidiary since 1958, responsible for production base design.[59]
  • FAW Forging Co Ltd -Producingdieand hand-forged auto parts, this subsidiary was established on 31 May 2000.[60]
  • FAW Foundry Co Ltd -This wholly owned subsidiary produces cast auto parts including engine blocks.[61]
  • FAW Jiaxin Heat Treatment and Electroplate Technology Co Ltd- This wholly owned subsidiary designs and manufactures complete heat treatment and electroplating systems.[62]
  • 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.[63]A vehicle-monitoring division of its GPS research & development arm used a system purchased fromAvayato, "monitor over 3,000 vehicles throughout China".[63]
  • FAW Tool Co Ltd- This wholly owned subsidiary specializes in development and production of non-standard tools for automotive manufacture.[64]
  • FAW Tool and Die Co Ltd- Manufacturing automotive dies is the main responsibility of this wholly owned subsidiary.[64]
  • Dalian Diesel Engine Co- Produces engines for commercial trucks, construction equipment, and agricultural machinery.[65]In 1986, 35 years after its inception, this company became a wholly owned subsidiary of FAW.[66]
  • FAW Import and Export Corporation (FAWIE)- Established as a subsidiary in 1984, FAWIE is the international sales and marketing division of FAW Group.[67]Overseas joint ventures and technical cooperation with foreign countries are also within its remit.[67]This subsidiary has established overseas production facilities in Pakistan, South Africa, Tanzania, Ukraine, Vietnam, and Russia.[68]

Minor joint ventures[edit]

  • Chengdu Araco Automobile Trim Part Co Ltd- This joint venture with Japan's ARACO produces interiortrimparts.[49]
  • FAWER Automotive Component Co Ltd- Operated with American auto-parts makerVisteon,produces air-conditioning units at a facility in the Changchun Automotive Development Zone[69]
  • 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.[70]
  • FAW Huali (Tianjin) Automobile Co Ltd- A joint venture with Tianjin Automotive Industry (Group) Co Ltd that, since 2003,[42]has manufacturedDaihatsumodels sold under the brand name Dario.[71]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.[42]
  • 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.[72]
  • Changchun Fawer-Johnson- A joint venture between FAW Sichuan andJohnson Controls,it produces a wide range of interior components including automotive seats andtrim.[57]

Production bases and facilities[edit]

FAW has production bases located in 14 provinces throughout China[5]including the provinces ofGuangdong,[73]Hainan,[9]Heilong gian g,[9]Jilin,[9]Liaoning,[74]Shandong,[9]Sichuan,[9]andYunnan.[9]Non-provincial locales includePudong[36]andTianjin.[9]

Changchun[edit]

FAW headquarters are located inChangchun,Jilin province,and operations here include an R&D and test center.[75]Additionally, FAW has two production bases here—one produces for theFAW-Volkswagenjoint venture and the other makes self-branded autos.[76]

Chengdu[edit]

An unfinished production base in the Longquan Economic Development Zone inChengdu,Sichuan province,replaces an olderSichuanbase 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 forFAW-Volkswagen,[45]and a second VW production base is, as of 2009, scheduled to be built in the city.[78]

Dalian[edit]

AHybrid electric busproduced by FAW Bus and Coach Co Ltd in Dalian

The Dalian division of FAW Bus and Coach Co Ltd manufactures Jiefang and Yuan Zheng brand medium and large-size buses in a production base inDalian,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[edit]

As of 2010, 150,000 units/year production capacity FAW-VW production base will soon be built in thisGuangdong provincecity.[73]

Hainan[edit]

Located in the sunny, southern vacation spot ofHainan islandand 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[edit]

A planned production base at the Aviation & Automobile Development Zone (Pingfang Development Zone) in the city ofHarbin,Heilong gian g province,will see completion in December 2010 and produce light trucks.[58]

Shanghai[edit]

FAW Jiefang Truck Co Ltd has a production base inPudong New Area in Shanghai.[36]

Tianjin[edit]

Plants No. 1, 2, and 3 in the city ofTianjinproduce 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[edit]

A FAW Jiefang Truck Co Ltd medium, heavy, and severe-duty truck production base is located inQingdao,Shandong province.[36]

Export and overseas sales[edit]

A FAW CA1031 truck in Russia

While 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 inJordan.[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]Zimbabweand Uruguay.[54]

NAZ-Nakhchivan Automobile Planthas assembled FAW cars inNakhchivan,Azerbaijan,since 2020.[citation needed]

See also[edit]

References[edit]

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