FAW gearing up for revival of Red Flag brand

Shanghai December 3 (Gasgoo.com) First Auto Works (FAW) has got approval from the Ministry of Industry and Information Technology of China (MIIT) to produce five Hongqi or Red Flag-branded cars, including an all-electric sedan, two hybrid sedans and two limousines, Nan Fang Daily reported Friday.

At present, the Chinese automaker has completed prototype development of the Hongqi hybrid sedans, which can reduce fuel consumption by 40% and emissions by 30%. The two hybrid sedans listed on the new car catalog are all equipped with new 1.5L engine.

In addition, FAW plans to put in place a production base with annual capacity of 11,000 hybrid sedans and 1,000 hybrid buses by 2012. In 2003, it expects to produce 30,000 Hongqi C131 cars per year.

FAW Car Co. (000800.SZ), a passenger car division of First Auto Works (FAW), has been well prepared and will officially begin production of the C131 model at the end of 2011, said FAW Car general manger Hang Peijie.

Separately, FAW announced plan to revival the Hongqi brand in August, according to which 1.76 billion yuan ($264 million) will be spent on building a production line for the C131 model with a projected annual capacity of 30,000 units in 2013; 690 million yuan on the plant producing 4GC engines to power Hongqi and other FAW cars; 650 million yuan on expanding the stamping workshop.