FAW revives Red Flag brand and opens it to public

Article by Anita Panait, on June 4, 2013

Chinese carmaker FAW Group has re-launched its Red Flag brand in the country. This means that FAW’s Red Flag sedans are now available to the public. FAW, which has already delivered over 500 Red Flag cars to government agencies, is planning to invest at least CHY10.5 billion ($1.7 billion) to develop the brand through 2015.

Aside from developing Red Flags’ cars, FAW also owns full intellectual-property rights over its engine, chassis, body design and electronics. The brand has been included by China’s Commerce Ministry as an item for foreign aid.

FAW will be up against foreign luxury carmakers like Audi, BMW and Mercedes-Benz. Cao He, an analyst with China Minzu Securities Co., compared China's vehicle market to a “jungle full of ferocious beasts," adding Red Flag would not survive unless it has “the toughest type of DNA in its blood."

he re-launched brand is getting support from the current Communist Party leadership. Communist Party chief Xi Jinping remarked in December 2012 that "it doesn't look good" for Chinese government officials to ride in foreign-brand cars all the time.

In April 2013, FAW delivered 12 Red Flag sedans to China's eastern Zhejiang provincial government, which acquired the cars to support the Party's government-car reforms. Red Flag cars were in the past typically reserved for high-ranking government and Party officials. FAW build around 1,500 Red Flag cars before it was discontinued in 1982. The government had since tried to revive the brand, but failed. [source: Bloomberg]

If you liked the article, share on:

Comments

Recommended

A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries