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 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 headquartered in Qingdao, with FAW Hongta and FAW Harbin continuing as production bases. The move aims to streamline operations and enhance efficiency in the light vehicle segment.
In addition to combining these two key resources, FAW has injected an additional 295 million yuan into a wholly-owned subsidiary to support the integration process. The company is also restructuring its equity in both FAW Hongta and FAW Harbin Light Depot. After the capital increase, FAW Group will hold 34.97% of FAW Hongta’s equity and the net assets of the Harbin Light Depot, following asset adjustments. New assets will be transferred into the company, and the registered capital of FAW Light Vehicle is expected to reach approximately 650 million yuan.
This initiative marks a major strategic shift for FAW, which is placing strong emphasis on the development of its light commercial vehicle division. To underscore the importance of this move, Yan Fufeng, the former general manager of FAW who was recently appointed as vice governor of Jilin Province, personally traveled to Qingdao to officially unveil the new company. His presence highlights the significance of this integration and signals FAW's long-term commitment to strengthening its position in the light vehicle market.