faw

List of News and Information about faw on 4WheelsNews.com

News and Information about faw

Read the latest news and information about faw published on 4WheelsNews.com! View comments and pictures about faw on 4WheelsNews.com!

You also might be interested: toyota, dealer, vw, joint venture

Up to 10% of FAW-Toyota dealers may quit from network

Up to 10 percent of dealers for FAW-Toyota Motor Sales Co. group could be backing out from the network as they are not generating enough income from selling the vehicles they are supposed to sell. According to Song Tao, a deputy secretary of the China Automobile Dealers, 95 percent of 523 dealers serving the joint venture between Toyota and FAW are bleeding financially and some of them may have to stop selling the JV’s products.

This comes as China Automobile Dealers sent FAW-Toyota a letter asking the JV to provide CHY2.2 billion ($353 million) in subsidies to help dealers meet costs brought by excess inventory, according to a copy sent to Bloomberg News. Data from the association says unsold vehicles on lots are on their highest level in December since August 2013.

Due to lower sales, FAW-Toyota lowered its sales target in September by 6 percent to 620,000 vehicles for the full year 2014. With the current situation, dealers in the FAW-Toyota network is asking the joint venture to set a 2015 sales target that is not higher than the total deliveries in 2014.

Read the entire article Up to 10% of FAW-Toyota dealers may quit from network

Volkswagen extends joint venture with FAW to 2041

As it pushes to grab a larger share of the auto market in China, Volkswagen agreed to extend its joint venture with FAW Group Corp. by 25 years. Under the new agreement, Volkswagen and FAW will "significantly expand" existing r&d activities in China while into new business areas particularly on alternative drive technologies, VW said in a statement that the current agreement with FAW will expire in 2016, but has been extended to 2041.

The German carmaker announced in July it will make a EUR2 billion investment with FAW to build two more assembly sites in China. As of late, VW operates eight car-making sites and nine component facilities in China. VW also recently announced it would make a EUR100 million ($126 million) invest with SAIC Motor Corp. in the Shanghai Volkswagen proving ground in Xinjiang province, western China.

VW also has a joint venture in China with SAIC. The German carmaker has seen significant gains in China, which has helped it offset slow recovery in Europe and slumping sales in other emerging countries.

Read the entire article Volkswagen extends joint venture with FAW to 2041

Volkswagen to probe FAW’s unauthorized use of its patents

Volkswagen AG has expressed concern over the possibility that its Chinese joint venture partner FAW is using some of its patents without authorization. VW chief executive Martin Winterkorn, in an interview with German daily Handelsblatt, said that if these are open questions on patents, the carmaker will discuss them with FAW, adding that the company will not accept the unauthorized use of the patents.

Winterkorn declared that VW will protect its intellectual property rigorously even in China. VW’s CEO disclosed to Handelsblatt that the concerned FAW plants possibly using VW patents are located in Changchun, China. Winterkorn said they will probe into the matter and will examine things on site. 

VW’s CEO is currently in China as part of a German delegation led by Chancellor Angela Merkel. VW was the first foreign carmaker to have operations in China three decades ago. The carmaker intends to invest EUR14 billion ($17.54 billion) through its joint ventures on new plants and products in China through 2016.

Read the entire article Volkswagen to probe FAW’s unauthorized use of its patents