FAW TO RESTRUCTURE FOR GROUP LISTING
China's automotive giant FAW Group Corporation, which is among others manufacturing buses, plans restructuring the assets of FAW Car and Tianjin FAW Xiali and transfer its holdings in the two listed subsidiaries to a newly incorporated firm for the group's listing, Chinese media reported. FAW will float its newly-created firm, which will later absorb the group's other auto assets, including its commercial vehicle businesses and its stake in FAW-Volkswagen. FAW also holds a prominent place in the recently published 2010 “Fortune 500” list of the world’s biggest companies.
"FAW has been mulling to go public for many years, but the plan was postponed repeatedly because it's difficult to pick the right platforms. It seems to have sought out the issue finally," said a Beijing-based analyst with Guotai Junan Securities, Reuters reported. A Chinese partner of Volkswagen AG and Toyota Motor, FAW controls 60% of car venture FAW-VW, which makes Volkswagen and Audi models. FAW Xiali holds 30% of its parent's venture with Toyota, whose product line-up includes Vios, Corolla, Reiz and Crown sedans.
FAW's new move will make the group the last of China's big three auto giants to go public, after SAIC Motor Corp and Dongfeng Motor Group. FAW sold 1.24 million vehicles in the first half, holding 13.8% domestic market share.
In the recently released 2010 "Fortune 500" list, these three manufacturers are featuring on a prominent place. In total there are four Chinese car companies on the list – besides the three already mentioned it is China Chang'an Automobile Group Co., Ltd, (CHANA).
Dongfeng Motor, SAIC and FAW Group rank 182nd, 223rd and 258th respectively on the list of global 500 largest companies. While CHANA, relying on its parent company: China South Industries Group Corporation (CSGC), was also selected and ranked 275th.
SAIC and FAW Group moved from last year's 359th and 385th places to 223rd and 258th respectively, whereas Dongfeng was selected for the first time. With regard to bus production, SAIC co-operates with Volvo Bus in the joint venture Sunwin.
