FAW Car confirms that it is receiving government support, stocks take hit

Gasgoo.com (Shanghai August 22) - Reports that FAW Car has pulled itself from the market have been circulating through the media as of late. The manufacturer made an official statement yesterday, confirming not only that it stopped trading, but that it is also back on the market. FAW Car confirmed that they received financial help from the municipal government of Changchun, which purchased a portion of the manufacturer, the Beijing Times reported today.

The Changchun government has agreed to provide for subsidies ranging from 3,500 yuan to 7,000 yuan ($552.73-$1,105) for private purchases of the manufacturer's own brand models, including the Oley sedan and a variety of vehicles from the Besturn line. The subsidies will be effective for purchases from July of this year to late June 2013. At the same time, the government will also purchase FAW Car automobiles for use as official government vehicles.

In spite of this, FAW Car's stock still took a dive of four percent, finishing at 9.11 yuan ($1.439).