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. In 2014, the company ranked third in terms of output making 2.7 million whole vehicles.
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
|Founded||July 15, 1953 (Changchun)|
|Headquarters||Changchun, Jilin, China|
|Xu Ping (Chairman)
Xu Xianping (President)
|Revenue||RMB 292.7 billion (2010)|
Number of employees
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 the first FAW vehicle-manufacturing facility. 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 BenzMercedes Benzes 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 2.6 million vehicles in 2011, the third-largest output of any China-based company. While it retained its third place rank, the number of whole vehicles produced in 2012 slowed to 2.3 million. Passenger cars made up a relatively scant 64% of total production that year.
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 subsidiariesFAW 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
In 1986, 35 years after its inception, this company became a wholly owned subsidiary of FAW. It produces engines for commercial trucks, construction equipment, and agricultural machinery.
- 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
Producing die and hand-forged auto parts, this subsidiary was established on 31 May 2000.
- FAW Bus and Coach
- FAW-GM Light Duty Commercial Vehicle Co Ltd
A joint venture with General Motors that mainly produces Jie Fang light-duty trucks, this JV includes the Harbin Light Vehicle and FAW Hongta Yunnan factories.
- FAW Foundry Co Ltd
This wholly owned subsidiary produces cast auto parts including engine blocks.
- FAW Hainan Automobile Co Ltd
Operating the southernmost FAW production base, it has manufactured license-built Mazdas since 1990.
- 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
Founded in 1968, this subsidiary manufactures compact cars and since 2002 has had a joint venture with Toyota Motor Corporation, Tianjin FAW Toyota Motor 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, andYunnan. 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 theFAW-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.
Another site in Chengdu produces cars for FAW-Volkswagen, and a second VW production base is, as of 2009, scheduled to be built in the city.
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 inDalian, 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.
As of 2010, 150,000 units/year production capacity FAW-VW production base will soon be built in this Guangdong province city.
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.
FAW Jie Fang Truck Co Ltd has a production base in Pudong New Area.
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 production in 2007. Tianjin FAW Toyota Motor Co Ltd also has an engine plant in Tianjin.
A FAW Jie Fang Truck Co Ltd medium, heavy, and severe-duty truck production base is located in Qingdao, Shandong province.
- Chengdu Araco Automobile Trim Part Co Ltd
This joint venture with Japan's ARACO produces interior trim parts.
- Chengdu FAW Co Ltd
This subsidiary of FAW's joint venture with VW controls production bases in Chengdu, Sichuan province.
- 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
This joint venture with General Motors mainly produces Jie Fang light-duty trucks.
- GS Motors SA de CV
Possibly a joint venture with Grupo Salinas, it may manufacture and distribute cars in México and Latin America.
- 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.
- 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 Tianjinand 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.
The FAW "winged 1" badge is derived from the Chinese 一汽 ("一" meaning "one" and "汽", from "汽車" meaning "automotive") and depicts a hawk spreading its wings. The logo was introduced in 1964.
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.