FAW to sell mini car production unit at $42,500.
source: Gasgoo.comMarch 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.