FAW Group

China FAW Group Corp., Ltd. (First Automobile Works) is a Chinese state-owned automobile manufacturer headquartered in Changchun, Jilin.[5] Founded the 15th 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]

China FAW Group Corporation Limited
Native name
中国第一汽车集团有限公司
TypeState-owned enterprise
IndustryAutomotive
Founded15 July 1953 (15 July 1953)
Headquarters
Changchun, Jilin
,
China
Area served
East Asia (except Taiwan, South Korea, Japan), Southeast Asia, South Asia, West Asia, Eastern Europe, and Africa
Key people
Xu Liuping (Chairman)[1]
Xu Xianping (President)[2]
ProductsAutomobiles
Buses
Trucks
Automotive components
Production output
3,500,000 units (2021)[3]
RevenueRMB 292.7 billion (2010)[4]
Number of employees
132,000 (2007)
DivisionsHongqi
Besturn
Jiefang
Subsidiaries
List
Chinese name
Simplified Chinese第一汽车集团
Traditional Chinese第一汽車集團
Literal meaningFirst Automobile Group
Abbreviation
Simplified Chinese中国一汽
Traditional Chinese中國一汽
WebsiteFAW.com

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).

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 Car Co., Ltd. (SZSE: 000800), Tianjin FAW Xiali Automobile Co., Ltd. (SZSE: 000927), and Changchun FAWAY Automobile Components Co., Ltd. (SSE: 600742).

History
FAW Group Corporation Main Building
First Automobile Works' first products
Logo used between 2000 and 2022

First Automobile Works broke ground on its first factory in 1953 (the first year of the first five-year plan),[13][9] and produced its first product, the Jiefang CA-10 truck (based on the Soviet ZIS-150) in 1956.[14]

Soviet Russia lent assistance during these early years providing technical support, tooling, and production machinery.[13] Before the first factory opened, 39 Chinese FAW employees traveled to the Stalin Truck Factory for instruction in truck production.[14] Operations were conducted under Soviet direction, and the USSR is even credited with choosing Changchun as the location for the first FAW facility.[15]

First Automobile Works initially made only commercial trucks,[9] but started producing passenger cars in 1958.[14] These vehicles, Hongqi luxury sedans, were the first domestically produced Chinese automobiles.[14] Made primarily for the party elite, the design changed little over their thirty-year production run.[16] Following this, FAW's Audi products are the traditionally favoured choice for ranking Chinese state officials.[17]

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).[18] The logo was introduced in 1964.[19]

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.[20]: 202–204 

In 1992, the name First Automobile Works was changed to FAW Group Corporation.[18]

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.[21]

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.[22] As a result, FAW ended up with Toyota as a foreign joint venture partner.[23] FAW established a joint venture with General Motors in 2009[24] 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.[25] 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.[26] It produced 2.6 million vehicles in 2011, the third-largest output of any China-based company.[27] While it retained its third place rank, the number of whole vehicles produced in 2012 slowed to 2.3 million.[28] Passenger cars made up a relatively scant 64% of total production that year.[28]

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.[29]

Brands and products

FAW sold products under at least ten different brands including its own, but most of its brands has been discontinued or consolidated into Hongqi, Bestune, and Jiefang brand currently.

Hongqi
Main article: Hongqi (marque)

Hongqi is a Chinese luxury car marque owned by the automaker FAW Car Company, itself a subsidiary of FAW Group. Hongqi was launched in 1959, making it the oldest Chinese passenger car marque. In Chinese, hongqi means "red flag."

A FAW semi-trailer truck in China

Jiefang
Main article: FAW Jiefang

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.[30]

  • Jiefang J7
    Jiefang J7
  • Jiefang J6P
    Jiefang J6P

Bestune (formerly Besturn)
Main article: Bestune

Bestune was established on August 18, 2006,[31] It may also be known as Ben Teng.[32] It serves as the passenger car brand in FAW Group.

FAW discontinued brands
  • FAW Haima (divested), founded in January 1992 as Hainan Mazda Motor, a joint venture between the Hainan provincial government and Mazda to 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), Jiaxing (discontinued)
  • FAW Jilin (discontinued), a maker of mini-vehicles, small trucks and vans under the Senia and Jiabao brands.
  • Oley (discontinued),[33] 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 called SiTech DEV1 launched.[34]
  • Pengxiang[35]
  • Shenli[36]
  • Yuan Zheng[37]
  • FAC (marque), FAW Lingyuan
  • Baolong
FAW group sales by brand[38]
Year Total FAW Group FAW Car Faw Jiefang FAW Haima FAW Jilin FAW Tianjin
Hongqi Bestune Oley Jiefang Haima Senia Jiabao Junpai Xiali
2010 1,038,290 193 132,212 - 394,739 140,332 48,499 70,795 - 245,920
2011 907,337 2 112,816 - 280,104 156,212 41,090 62,555 - 250,153
2012 718,327 127 72,484 6,545 230,026 131,642 41,270 49,672 - 183,976
2013 723,969 2,981 121,254 6,300 276,956 113,446 40,424 39,554 - 129,392
2014 627,006 2,708 179,453 6,933 239,450 90,426 17,666 17,776 4,041 68,018
2015 505,849 5,044 147,897 1,936 178,300 70,938 14,159 22,705 29,308 35,541
2016 505,711 5,052 105,670 863 231,203 63,029 50,440 10,612 16,595 21,909
2017 572,862 4,702 116,472 186 317,445 39,369 62,290 5,308 17,598 9,482
2018 543,986 33,028 88,708 197 338,302 22,507 36,248 3,375 17,674 11,22
2019 589,832 100,166 120,193 discontinued 352,702 4,452 5,818 683 3,771 221
2020 779,403 200,338 83,391 492,622 2,936 discontinued discontinued
2021 846,803 300,638 77,218 454,426 14,521
2022 554,260 309,657 74,554 170,049 divested

Joint ventures

FAW-Toyota
Main article: FAW Toyota
See also: Tianjin FAW

Created in 2003,[39] FAW operates this joint venture with Japanese automaker Toyota through Tianjin FAW. Key subsidiaries include:

Guangzhou Toyota Motor Co

Operates a passenger car production base in the Nansha Economic Development District of Guangzhou, Guangdong province.[40]

A Toyota Land Cruiser Prado produced by Sichuan FAW Toyota Motor
Sichuan FAW Toyota Motor Co

Operates a passenger car production base in the Chenghua District of Sichuan province and another in Changchun, Jilin province.[40] 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.[41]

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.[41]

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.[41]

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

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.[42] It manufactures Audi and Volkswagen-branded automobiles for sale in China.[43]

Chengdu FAW Co Ltd

This subsidiary of FAW's joint venture with VW controls production bases in Chengdu, Sichuan province.[44]

FAW-GM
Main article: FAW-GM

A joint venture with General Motors that mainly produces Jiefang light-duty trucks,[45] this JV includes the Harbin Light Vehicle and FAW Hongta Yunnan factories.[46]

FAW-GM Light Duty Commercial Vehicle Co Ltd

This joint venture with General Motors mainly produces Jiefang light-duty trucks.[45]

Silk-FAW Automotive
Main article: Silk-FAW Automotive

This joint venture with US based design firm Silk EV produces high end luxury hybrid sports cars.[47]

Subsidiaries and divisions
FAW Toyota Crown

FAW 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.

Chengdu FAW Automobile Co Ltd

Chengdu FAW produces Huaxi brand light and medium buses based on the Toyota Coaster.[48] Originally the Sichuan Bus Company, it became a partially-owned subsidiary in 2002 after acquisition by FAW.[48]

A Besturn B70 produced by FAW Car Company

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,[49] this publicly listed subsidiary produces cars, transmissions,[49] and engines.[50] It has a production base in western Changchun, Jilin province.[51]

FAW Bus and Coach
Main article: FAW Bus and Coach

Founded in 1959, it produces buses sold under the Taihu brand.

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.[52] This factory was included in the FAW-GM Light Duty Commercial Vehicle joint venture.[46]

  • FAW Hongta Lanjian Jiefang
    FAW Hongta Lanjian Jiefang
  • FAW Hongta T340
    FAW Hongta T340

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[53] or March 1991.[54] It manufactures compact trucks and buses originally based on Suzukis. More recently, Jilin participated in a five-year-long joint venture with Daihatsu.[55]

FAW Passenger Vehicle Co

As of 2012, this company has two factories and some of the products it produces carry the Oley brand.[33]

FAW Sichuan 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.[56]

The Harbin Light Vehicle Factory

Established in 1965, this FAW Group subsidiary made military vehicles until partnering with FAW in the 1990s.[57] It has since produced pickups, Jiefang trucks, and mini-vehicles (small trucks and vans that see commercial use).[57] This factory was included in the FAW-GM Light Duty Commercial Vehicle joint venture.[46]

Other divisions
  • The 9th Industrial Machinery Design and Research Institute - Wholly owned subsidiary since 1958, responsible for production base design.[58]
  • FAW Forging Co Ltd - Producing die and hand-forged auto parts, this subsidiary was established on 31 May 2000.[59]
  • FAW Foundry Co Ltd - This wholly owned subsidiary produces cast auto parts including engine blocks.[60]
  • FAW Jiaxin Heat Treatment and Electroplate Technology Co Ltd - This wholly owned subsidiary designs and manufactures complete heat treatment and electroplating systems.[61]
  • 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.[62] A vehicle-monitoring division of its GPS research & development arm used a system purchased from Avaya to, "monitor over 3,000 vehicles throughout China".[62]
  • FAW Tool Co Ltd - This wholly owned subsidiary specializes in development and production of non-standard tools for automotive manufacture.[63]
  • FAW Tool and Die Co Ltd - Manufacturing automotive dies is the main responsibility of this wholly owned subsidiary.[63]
  • Dalian Diesel Engine Co - Produces engines for commercial trucks, construction equipment, and agricultural machinery.[64] In 1986, 35 years after its inception, this company became a wholly owned subsidiary of FAW.[65]
  • FAW Import and Export Corporation (FAWIE) - Established as a subsidiary in 1984, FAWIE is the international sales and marketing division of FAW Group.[66] Overseas joint ventures and technical cooperation with foreign countries are also within its remit.[66] This subsidiary has established overseas production facilities in Pakistan, South Africa, Tanzania, Ukraine, Vietnam, and Russia.[67]

Minor joint ventures
  • Chengdu Araco Automobile Trim Part Co Ltd - This joint venture with Japan's ARACO produces interior trim parts.[48]
  • FAWER Automotive Component Co Ltd - Operated with American auto-parts maker Visteon, produces air-conditioning units at a facility in the Changchun Automotive Development Zone[68]
  • 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.[69]
  • FAW Huali (Tianjin) Automobile Co Ltd - A joint venture with Tianjin Automotive Industry (Group) Co Ltd that, since 2003,[41] has manufactured Daihatsu models sold under the brand name Dario.[70] 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.[41]
  • 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.[71]
  • Changchun Fawer-Johnson - A joint venture between FAW Sichuan and Johnson Controls, it produces a wide range of interior components including automotive seats and trim.[56]

Production bases and facilities

FAW has production bases located in 14 provinces throughout China[5] including the provinces of Guangdong,[72] Hainan,[9] Heilongjiang,[9] Jilin,[9] Liaoning,[73] Shandong,[9] Sichuan,[9] and Yunnan.[9] Non-provincial locales include Pudong[35] and Tianjin.[9]

Changchun

FAW headquarters are located in Changchun, Jilin province, and operations here include an R&D and test center.[74] Additionally, FAW has two production bases here—one produces for the FAW-Volkswagen joint venture and the other makes self-branded autos.[75]

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.[76]

FAW Jiefang Truck Co Ltd also has a production base here.[35]

Another site in Chengdu produces cars for FAW-Volkswagen,[44] and a second VW production base is, as of 2009, scheduled to be built in the city.[77]

Dalian
A Hybrid electric bus produced 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 in Dalian, Liaoning province.[37] 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.[73]

Another Dalian base produces engines for commercial trucks, construction equipment, and agricultural machinery.[64]

Foshan

As of 2010, 150,000 units/year production capacity FAW-VW production base will soon be built in this Guangdong province city.[72]

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.[36] FAW Hainan Automobile Co Ltd operates FAW's southernmost production facility here.[36]

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.[57]

Shanghai

FAW Jiefang Truck Co Ltd has a production base in Pudong New Area in Shanghai.[35]

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.[78] Plant No. 1 is in Yangliuqing Town, Xiqing District,[78] and plants No. 2 and 3 are located in the Tianjin Economic and Technological Development Zone and began production in 2007.[78] Tianjin FAW Toyota Motor Co Ltd also has an engine plant in Tianjin.[79]

Qingdao

A FAW Jiefang Truck Co Ltd medium, heavy, and severe-duty truck production base is located in Qingdao, Shandong province.[35]

Export and oversea sales
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 in Jordan.[14] FAW has shipped its products to more than eighty nations,[5] including Egypt,[80] Iraq,[81] Kenya,[81] Mexico,[82] Myanmar,[83] Pakistan,[81] Russia,[67] South Africa, Iran,[84][85] Zimbabwe and Uruguay.[53]

NAZ-Nakhchivan Automobile Plant has assembled FAW cars in Nakhchivan, Azerbaijan, since 2020.

See also

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