Hongqi to develop new models for sales growth

Shanghai, August 6 (Gasgoo.com) Not to rely on Toyota's Crown any more, FAW Car's Hongqi brand will develop a new lineup of its own-brand models for sales growth by partnering with Austrian auto design firm Magna Steyr, reported 21st Century Business Herald today, citing an executive of FAW's Hongqi division.

The Hongqi brand of FAW, a Chinese partner of Japan's Toyota Motor, has its historic and political value as a 'state sedan' for senior Chinese leaders in the 1950s-80s. Although the sales of Hongqi (HQ) sedans have slowed down and FAW's Hongqi divison is losing money, this "Red Flag" brand-name was evalaued at 6.067 billion yuan ($886 million) in 2007 -- the biggest market value of a car brand in China's auto industry.

Because of the poor sales of the current HQ models, their production has mostly stopped, except the HQ3 styled from the Toyota Crown Majesta, and FAW's Hongqi division has decided to develop a new HQ lineup for the brand's recovery and growth in the market. Magna Steyr, the designer of Mercedes-Benz's "4MATIC" and the BMW X3, is engaged in designing the B-Class, D-Class, E-Class HQ sedans and other HQ vehicle models.

The B-Class and D-Class HQ sedans will be first launched in the new HQ portfolio after the HQ3, and the HQE will debut next year as a state guest sedan. In addition, HQ vans and HQ SUVs are also expected to go on sale in 2009. The "Red Flag" is likely to regain its former glory.