Goal Changed 3 Times in 6 Years, FAW Keeps on Fighting

8 months away from year 2015, FAW decides to change its goal. XU Xianping, general manager of FAW Group says at the first media conference that the goal for FAW Group for the next 10 years is to realize its brand “Top in China, Top 10 around the World.”

FAW makes 2 steps to fulfill the goal. The first step aims 2 million sales of its brand up to year 2020. The second step to fulfill the above goal up to year 2025.

What’s interesting, XU Jianyi, who was the general manger of FAW Group, says for the “12th Five-Year-Plan” at Beijing Auto Exhibition of year 2010 that “finished car sales of FAW shall exceed 4 million up to year 2015, and our brand shall exceed 50% of them, which is more than 2 million cars.”Now, it means that the 2 million cars sales goal of FAW brand has been delayed for 5 years.

FAW explains that “considering about the change, construction, and growthof automobile industry, the goal shall be delayed now.” In the past 2 years, Oley of FAW young generation strategy fails. Sales of old Chaalis are kind of sagged. Even classic Jiefang is not that popular in commercial segment. Sales of Chinese star mode Red flag does not good enough with much resource investment. FAW now walks further away from its brand reparation and sales build.

Decline tendency of FAW starts from year 2012. However, production and sales of FAW has reached 1 million at the end of year 2010. With passenger car and commercial car forward together, FAW leads among other Chinese companies. At that moment, FAW announces to fulfill 2 million sales before year 2015 with finish of FAW “12th Five-Year Plan.”

The figure increased 30% over goal of year 2008. In year 2008, FAW announces to reach 3 million sales up to year 2012. Sales of FAW brand shall reach 1.5 million cars. It shall fulfill double top 1 on production and sales. However, the goal is broken up in year 2012. Sales of Oley and Benteng are not good enough, and even far distance from other state owned and private companies. The entire sales of FAW falls 3rd behind SAIC and Dongfeng. Year 2013, the reality is still curl. The entire sales of FAW are 2.9 million, which is distance from 5 million sales SAIC and 3.53 million sales Dongfeng. Meanwhile, Changan and Beijing Auto narrows the distance between them and FAW.