FAW sub brands loosing money?
FAWs sub brand, Hong Qi, had a monopoly on the luxury car class in China for over a decade, however, the opening up of the Chinese economy has seen the richest of the PRC flocks to brands such as BMW, Mercedes, and Audi, leaving the Hong Qi relying on government purchases.
FAWs other brand, the recently launched Bestung is also loosing money. The Bestung is currently a one model line up, but plans appear to be afoot to expand the line up.
Last year, FAW made a total profit of 552.87 million RMB, this is a massive increase on the 2006 profit of 276.53 million. Hong Qi made a loss of 50 million RMB and Besturn also made a loss of 150 million RMB in 2007. FAW’s current top selling motor is the Mazda 6, which will be getting a makeover in the next few months. FAW will be spending 2 billion RMB this year on improving and building up its own brand products.
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wow see i told ya state enterprises are grossly insufficent and unreliable, if it were for the tie ups with Mazda and GM, i would imagine that it will go bankrupt very qucikly. And the new Bestung new line up doesn’t look very promising either.
Bestung will do well – eventually! They need to sort out their names, the whole brand is a bit of a mess and needs sorting out.
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However, FAW have the skill and the know how to make some good cars thanks to their tie ups with Mazda, VW, Audi etc.
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Their English name, ‘Best Urn’, does not bode well for a car name either.
Yes,FAW shall have better names for brands also for the company.
Bestung could keep on loosing money maybe for a couple of years in view of depreciation of investment.
Seems no chance for Hongqi to recover.