China’s FAW Expands Footprint in South Africa, Russia
Executive Summary
The auto maker is working to become more competitive internationally by expanding into South Africa, Mexico, Russia and Ethiopia in recent years.
Chinese auto maker FAW Group is ratcheting up its operations in South Africa and Russia.
FAW Chairman Xu Jianyi says the RMB500 million ($78.5 million) truck plant announced for South Africa in March is to be expanded.
The government’s Xinhua news agency quotes Xu as saying the plant, originally scheduled to produce 5,000 trucks a year, will be turned into an overseas manufacturing base with an annual output of 50,000 passenger vehicles.
FAW says it is accelerating construction of truck- and car-production bases to increase its international competitiveness. As part of this effort it has sought overseas markets in South Africa, Mexico, Russia and Ethiopia in recent years.
“The program of developing a manufacturing base in Russia is ongoing,” says Wang Lizhi, general manager of the auto maker’s Jiefang truck-making subsidiary.
Xinhua says FAW sold more than 2.6 million vehicles last year and had revenue of RMB346.4 billion ($54.4 billion).
