Faw shows small possibility on VW’s stake increasing request

A few days ago, Germany media reports said Volkswagen was considering increasing its stake in Faw-VW, to be from the current 40% to 50%.

On this issue, Faw official told reporters that "there is no message and there is less possibility." "Faw group has 60% shares, which remained unchanged. "A few days ago, both Faw-Volkswagen and Faw group insiders said to reporters.

While Faw group is developing its own brand, feels rather overwhelmed in the technology regard. Informed sources disclosed that Volkswagen showed commitment on the Faw's own-brand research and provided a strong support, but asked to increase its stake in Faw-VW's shares.

"If the matter is settled and declared, Faw group will face big losses, seriously affecting the corporate image, that is why although the transfer of the shares could help Faw group grow his own brand and development, this matter still cannot be settled. "Mai Wei consulting firm manager Cheng Wenbing said .

It is apparent that after experiencing a series of non-cooperative obstacles, Faw-VW does not intend to abandon outperform equity goals, even upped the goal to reciprocal shareholdings.

Faw group insiders think it will face many difficulties if Faw-Volkswagen plans to outperform stock. "Faw is directly under central enterprises, stock changes must be approved by SASAC and other departments, which means that this really wasn't a thing of both Faw and Volkswagen. Beijing's attitude will determine the direction of things. "The above people says," it would not exclude the possibility that Faw Group promises to increase holdings of Volkswagen stock, but basically zero possibility of overweight 10%. ”