FAW to restructure subsidiary assets for group listing

Shanghai, July 14 (Gasgoo.com) China's auto giant FAW Group Corp plans restructure the assets of FAW Car and Tianjin FAW Xiali and transfer its holdings in the two listed subsidiaries to a newly incorporated firm for the group's listing, media reported today.

FAW Xiali and FAW Car said that their state parent FAW Group was making preparations for asset restructuring. FAW will float its newly-created firm, which will later absorb the group's other auto assets, including its commercial vehicle businesses and its stake in FAW-Volkswagen.

"FAW has been mulling to go public for many years, but the plan was postponed repeatedly because it's difficult to pick the right platforms. It seems to have sought out the issue finally," said a Beijing-based analyst with Guotai Junan Securities, Reuters reported.

A Chinese partner of Volkswagen AG and Toyota Motor, FAW controls 60% of car venture FAW-VW, which makes Volkswagen and Audi models. FAW Xiali holds 30% of its parent's venture with Toyota, whose product line-up includes Vios, Corolla, Reiz and Crown sedans.

FAW's new move will make the group the last of China's big three auto giants to go public, after SAIC Motor Corp and Dongfeng Motor Group. FAW sold 1.24 million vehicles in the first half, holding 13.8% domestic market share.