FAW Integrated Light Commercial Vehicle Business
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FAW has taken a significant step in consolidating its light commercial vehicle business. Yesterday, the company officially announced in Qingdao that it would merge FAW Hongta and FAW Harbin Light Depot to form FAW Light Vehicle Co., Ltd. This new entity will be based in Qingdao, with the headquarters for decision-making relocated there. The two existing units will continue to operate as production bases under the new structure.
In addition to merging these two key resources, FAW has injected an additional 295 million yuan into a wholly-owned subsidiary to strengthen the financial foundation of the newly established company. This move reflects the group’s strategic focus on optimizing its operations and enhancing efficiency in the light commercial vehicle segment.
FAW Group will hold 34.97% of the equity in FAW Hongta and the net assets of the Harbin Light Depot after necessary adjustments. The company plans to inject new assets through asset transfers, and once the capital increase is completed, the registered capital of FAW Light Vehicle Co., Ltd. will reach approximately 650 million RMB.
This integration marks a major milestone for FAW, and the company has shown strong commitment to its success. Yan Fufeng, the general manager of FAW, who was recently appointed as vice governor of Jilin Province, personally traveled to Qingdao to unveil the new company, underscoring the importance of this initiative. His presence highlighted the strategic significance of this move for FAW's long-term development.