FAW Car finally reports a profit as FAW Xiali suffers a deficit in first half of 2013

Gasgoo.com (Shanghai July 18) - Both FAW Car and FAW Xiali have released their sales performance reviews for the first half of the year. According to the reviews, which were cited in a Beijing Times report appearing today, FAW Car finally managed to earn a profit this time around, which is expected to be between 550 million yuan to 750 million yuan ($89.11m-$121.51m). By comparison, the manufacturer suffered a net deficit of 61.42 million yuan ($9.73m) in the first half of 2012. FAW Car attributes its performance to growing sales and revenue, which increased 15.7 percent and 8.4 percent, as well as the success of new products such as the Hongqi H7 (pictured) and Besturn X80. Changing exchange rates for the yen, which has led to cheaper costs for auto parts, was also cited as a factor behind FAW Car's strong results.

On the other end of the spectrum, FAW Xiali suffered a 78 percent to 100 percent drop in its net profit, which is expected to be less than 20 million yuan ($3.24m) for the first half of the year. In the first half of 2012, FAW Xiali reported a net profit of 90.25 million yuan ($14.29m). Declining sales and production numbers of Tianjin FAW Toyota, which FAW Xiali owns a part of, as well as decreasing sales of its current models were cited as the two major factors behind the manufacturer's lackluster performance. FAW Xiali reported a negative year-on-year sales growth of 32.5 percent for the six month time period.