FAW's International Cooperation

FAW-Volkswagen
FAW-Volkswagen Automobile Co., Ltd. is a large-scale joint venture passenger car manufacturer of FAW Group Corporation and Volkswagen AG, with share investments of 60% and 40% respectively. Volkswagen's 40% investment is divided between Volkswagen AG (20%), Audi AG (10%), and Volkswagen Automobile (China) Investment Co., Ltd. (10%).

FAW-Volkswagen Automobile Co., Ltd. was established in 1991, with the first Jetta automobile rolling off the assembly line on December 5 of that year. Audi AG became a member of the partnership in 1995, and full scale production commenced in July of 1996. Official government approval for the 150,000 annual unit project was received in 1997.

The company covers an area of 1.16 million square meters with a total investment of 11.13 billion Yuan and registered capital of 3.71 billion Yuan.

Following 10 years of continuous construction and development, the product offerings of FAW-Volkswagen have extended from the Jetta sedan to include the Bora (Jetta in U.S.), Golf, Audi A4, and A6. Production capability has reached an annual output level of 330,000 vehicles, 300,000 engines, and 180,000 transmissions.

On July 1, 2003, the board of directors of FAW-VW Automobile Co., Ltd. approved the construction of FAW-Volkswagen's Plant II, while simultaneously increasing the total investment from 11.13 billion Yuan to 23.435 billion Yuan (US $2.8 billion) with a registered capital increase from 3.71 billion Yuan to 7.812 billion Yuan (US $945 million). At present, 350,000 square meters of Plant II's 660,000 square meter design has been completed. 

Plant II will consist of 4 production areas, including stamping, welding and sub-assembly, painting and sub-assembly, and final assembly. Production will be focused on new PQ35 platform which includes the Bora V, Golf V, and recently announced Caddy MPV. The first Changchun-produced Caddy prototype was completed on July 1st of 2004, with pre-production commencing October 12, 2004.

FAW Toyota
On August 29, 2002, FAW Group Corporation and Toyota Motor Corporation signed a significant agreement in Beijing at the Great Hall of the People, to establish a strategic and long-term cooperative relationship for joint cooperation. Thereafter, the two parties commenced a wide scope of joint activities including production of Toyota product in China and related transfers of technology.
 
Cooperative and Joint Venture Projects between FAW and Toyota Motor Corporation
A. FAW Toyota Projects - Tianjin City
1. FAW Huali (Tianjin) Automobile Co., Ltd.（Terios）
　 Location:  Tianjin (FAW Huali Automobile south plant)
　 Product:  Terios compact SUV
　 Production capacity:  10,000 units annually (2 shifts)
　 Investment:  96.5 million Yuan
　 Equity participation:  FAW 75% / Daihatsu 25%
　 Date of production:  October 2003
 
2. Plant II of Tianjin FAW Toyota Automobile Co., Ltd. (Crown/Mark II) 
　 Location:  Tianjin Economic and Technology Development District
　 Product:  Toyota Crown luxury sedan and Mark II mid-level sedan
　 Production capacity:  150,000 units annually (2 shifts)
　 Investment:  2.2 billion Yuan
　 Equity participation:  FAW 50% / Toyota 50%
　 Date of production: March 2005
 
3. Tianjin FAW Toyota Automobile Co., Ltd. (Corolla)
　 Location:  Tianjin FAW Toyota - Plant I
　 Product:  Corolla sedan
　 Production capacity:  50,000 units annually (2 shifts)
　 Investment:  217.6 million Yuan
　 Funding:  Self-supported
　 Date of production:  February 2004
 
4. Toyota FAW (Tianjin) Die Co., Ltd.
　 Location:  Tianjin Economic and Technology Development District
　 Product:  Large Automotive Stamping Dies(Type A and B)
　 Principal customer:  Tianjin FAW Toyota Automobile Co., Ltd.
　 Production capacity:  150 sets annually
　 Equity participation:  FAW 10% / Toyota 90%
　 Date of production:  December 2004
 
B. FAW Toyota Projects - Beijing Municipality
1. FAW Toyota Automobile sales Co., Ltd.
　 Location:  Beijing
　 Investment:  310.4 million Yuan
　 Registered capital: US $25 million
　 Equity participation:  FAW 51% / Toyota 49% (including direct and indirect investment) 
　 Date of establishment:  November 2003 
　 Contractual duration of joint venture:  30 years
 
Business scope: 
1.  Sales, marketing, and distribution of domestically manufactured Toyota/Daihatsu vehicles.
2.  Dealer training.
3.  After-sales support for Toyota/ Daihatsu vehicles.
4.  Vehicle financing, leasing, and insurance services.
5.  Domestic spare parts distribution for Toyota/Daihatsu vehicles. 
 
C. FAW Toyota Projects - Changchun City
1. FAW Toyota (Changchun) Engine Co., Ltd (Toyota "AL"V6 engines)
　 Location:  Changchun Economic and Technology Development District (500,000 sq. m.) 
　 Product:  Toyota "AL" 2.5/3.0/3.5 V6 engines (MPI/GDI)
　 Application:  Toyota Crown, Mark II
　 Production capacity:  130,000 units annually (2 shifts)
　 Investment:  1.2 billion Yuan
　 Registered capital:  700 million Yuan
　 Equity participation:  FAW 50% / Toyota 50%
　 Date of production:  December 2004 
 
2. Changchun FAW Fengyue Automobile Co., Ltd. (Land Cruiser100 technology introduction Project)
　 Location:  Changchun City
　 Product:  Land Cruiser 100 luxury SUV (4.5 L V6 and 4.7 L V8)
　 Production capacity:  10,000 units annually (2 shifts) 
　 Investment:  238.5 million Yuan
　 Registered capital:  250 million Yuan
　 Funding:  Self-supported 
　 Date of production:  October 2003
 
D. FAW Toyota Projects - Sichuan Province 
 Sichuan Toyota Motor Co., Ltd. (Land Cruiser Prado project) 
　 Location:  Chengdu City, Sichuan Province
　 Product:  Prado SUV
　 Production capacity:  5,000 units annually (2 shifts)
　 Investment:  48.2 million Yuan
　 Equity participation:  Sichuan Toyota 50% / Toyota 50%
　 Date of production:  September 2003

FAW Mazda
FAW Mazda Motor Sales Co., Ltd. is a joint venture company established by China FAW Group Corporation, FAW Car Company and Japan Mazda Motor Corporation on Mar. 1, 2005. The registered capital of the JV is 100 million (RMB) yuan, among which 5% comes from FAW Group, 70% from FAW Car and 25% from Mazda Motor. As the only cooperative sales company for Mazda brand in China, the company will be responsible for the sales of Mazda6 in China market, and responsible for all the future Mazda models produced in China and their spare parts, accessories and tools supplied.