China's FAW loses ￥150 million in Q3, hoping its new leader will guide a new future

Gasgoo.com (Shanghai October 15th) The FAW car and FAW Xiali published its Q3 performance announcements on October 14th afternoon, both companies shouldering huge losses. The FAW car has an overall loss between 124.2 to 154.2 million Yuan, while the data for FAW Xiali lies between 260 to 360 million Yuan. Influenced by its great loss in Q3, the net profits for FAW car’s shareholders lies between 10 to 40 million Yuan from January to September, decreasing 95.94% to 83.76% compared with the previous period. The overall loss for FAW Xiali reaches a historical high of 0.8 to 0.9 billion Yuan.

An automobile analyst expressed his view that Q3 loss for the above two companies is quite understandable. The Chinese car market is adjusting its loss in Q3 and main automobile companies are trying to increase sales and decrease stocks. Weak brand enterprises such as FAW car and FAW Xiali are being hit most.

His opinion also includes that the capital market lays great hope on FAW new leader Xu Ping, hoping he will make out a reasonable road map for FAW self-developed brands. In the past, Chinese automobile companies lacked key technology and cooperative multi-national companies were unwilling to share their technologies out of their protection of intellectual property rights. The build-up of its own R&D system, instead of relying on foreign companies, will become an automobile company’s key competitive power in the near future.

Relevant leaders of FAW admitted that there are still a lot of tasks of five twelve planning to be completed, and the companying is making out its five thirteen planning, which will concentrate on the upgrade of its R&D system.

An Tiecheng, CEO of FAW, who is responsible of FAW self-brands five-thirteen planning, told us that FAW car, FAW Tianjin and FAW Jilin will focus on different markets. Besturn still focuses on middle-and-high-end brands, with main products covering A-B segment and SUV products covering A0-B segment. Xiali and Junpai will target on A and A- segment and Shenya is similar to them. Besturn brand will launch 8 type products during five-thirteen planning period, covering A-B segment cars, A0-A SUVs and MPV market.