FAW Huali is sold to FAW Xiali for $42,900

Shanghai, April 16 (Gasgoo.com) FAW Huali (Tianjin) Motor Co has finally been purchased by Tianjin FAW Xiali at a price of 300,000 yuan ($42,909), FAW Xiali made an official announcement yesterday.

FAW Xiali said it had bought 100% stakes of FAW Huali for 300,000 yuan at Tianjin Property Exchange Center as scheduled.

While the stake purchase deal hardly inked, FAW Xiali has unveiled another expansion plan to launch seven new models within the next five years, with production capacity rising from 200,000 units to 400,000 units by 2013.

Earlier report said the total assets of FAW Huali were evaluated at 789 million yuan, while net assets totaled 242,500 yuan. Last year the company lost 131 million yuan.

Though the acquisition can help boost FAW Xiali's capacity quickly, analysts from China Merchants Securities say it’s unnecessary for FAW Xiali to buy an idle company since it is able to do it on its own.