FAW to sell mini car production unit at $42,500.

March 21, 2008 – China’s FAW Group Corporation plans to sell 100% stakes of its subsidiary FAW Huali (Tianjin) Motor Co. for RMB 300,000 ($42,461), Chinese newspaper National Business Daily reported.

The report said the total assets of FAW Huali were evaluated at RMB 789 million ($112 M), while net assets totaled 242,500 yuan ($34,323). Last year company lost RMB 131 million ($18.4 M).

The seller says buyers must meet two prerequisites: First, the buyer must be a domestic OEM automaker with a registered capital of no less than RMB1.6 billion ($226.62 million) and the buyer must be able to turn FAW Huali into a 150,000 sedan maker; secondly, the buyer will be responsible for all FAW Huali liabilities.

FAW Huali was established in June 2002 and has a capacity of 180,000 vehicles annually. Its main products include Toyota Vela, Daihatsu Terios and minivans and some own brand electric passenger cars. The automaker has been losing money for years before its production was halted one year earlier.

source: Gasgoo.com

FAW Huali's potential buyer has emerged.

April 1, 2008 - FAW Huali (Tianjin) Motor Co. is reported to be bought by another FAW subsidiary -- FAW Tianjin Xiali Automobile, leaving other pursuers almost out of the competitions, Chinese newspaper Economic Observer reported on Monday.

The newspaper cited an unnamed Xiali official as saying that Huali has already chosen Xiali as its prospective buyer, and now the two sides are just waiting for goving through the legal formalities of the takeover.

FAW announced on March 21 that it would sell 100% stakes of its subsidiary FAW Huali for RMB 300,000 ($42,461) at Tianjin Property Exchange Center on April 15.

The report said the total assets of FAW Huali were evaluated at RMB 789 million, while net assets totaled RMB 242,500. Last year company lost RMB 131 million.

The seller says buyers must meet two prerequisites: First, the buyer must be a domestic OEM automaker with a registered capital of no less than RMB1.6 billion and the buyer must be able to turn FAW Huali into a 150,000-sedan maker; secondly, the buyer will be responsible for all FAW Huali liabilities.

FAW Huali was established in June 2002 and has a capacity of 180,000 vehicles annually. Its main products include Toyota Vela, Daihatsu Terios and minivans and some own brand electric passenger cars. The automaker had been losing money for years before its production was halted one year earlier.

source: Gasgoo.com

FAW Huali is sold to FAW Xiali for $42,900.

April 16, 2008 - FAW Huali (Tianjin) Motor Co has finally been purchased by Tianjin FAW Xiali at a price of 300,000 yuan ($42,909), FAW Xiali made an official announcement yesterday.

FAW Xiali said it had bought 100% stakes of FAW Huali for 300,000 yuan at Tianjin Property Exchange Center as scheduled.

While the stake purchase deal hardly inked, FAW Xiali has unveiled another expansion plan to launch seven new models within the next five years, with production capacity rising from 200,000 units to 400,000 units by 2013.

Earlier report said the total assets of FAW Huali were evaluated at 789 million yuan, while net assets totaled 242,500 yuan. Last year the company lost 131 million yuan.

Though the acquisition can help boost FAW Xiali's capacity quickly, analysts from China Merchants Securities say it’s unnecessary for FAW Xiali to buy an idle company since it is able to do it on its own.

source: Gasgoo.com