The Hongqi (Red Flag), the only local sedan brand in China, will
try to achieve a stronger market position through international
cooperation.
"We'll develop the Hongqi in an open and cooperative way," said Zhu
Yanfeng, general manager of the China First Automobile
Works Group Corporation (FAW), at the China Changchun
International Automobile Fair being held in Changchun, capital of
northeast China's Jilin Province.
Analysts said it may indicate that the Hongqi, born in the time of
the planned economy, would make a tangible breakthrough by
conducting cooperation with international auto giants either in
technology or in capital.
The Hongqi, first produced by China's first auto maker FAW in 1958,
was seen as China's "political sedan" and protocol car. Some of its
notable passengers include late Chinese leaders Mao Zedong and Deng
Xiaoping, and former U.S. President Nixon.
However, its glorious history did not keep it from being effected
by the market economy. In the early 1990s FAW developed new Hongqi
models based on advanced foreign technology and was rewarded with
sound market feedback.
New models at different prices enabled the Hongqi to become
accessible to regular people. FAW sold 20,000 Hongqi sedans one
year at its height.
However, most Chinese auto makers began to cooperate with foreign
businesses and the Hongqi was left behind in terms of investment,
production costs, and technology compared with the Sino-foreign
products.
Hongqi sales have been declined this year by 20 percent over the
same period of last year, according to relevant sources.
"The upgrade of their products is the most emergent task for all
local auto makers on the eve of China's accession to the World Trade Organization," said
Zhang Xiaoyu, vice-director of the automotive industrial federation
of China.
Zhang said he believes that further growth must be sought for the
Hongqi on an open international arena in order to become a strong
competitor.
Zhu Yanfeng expressed confidence that Hongqi would successfully
overcome the current difficulties through technology renovation and
more investment.
"I
do hope that one day Hongqi will regain its glory in China because
we all have a special feeling towards it," said Fan Yingxin, who
had a picture taken in front of a convertible Hongqi that was once
traveled in by Deng Xiaoping.
(
People’s Daily 08/30/2001)