American General Motors (GM) and China's state-owned automaker FAW Group Corp. (FAW) announced Sunday a two billion yuan (about US$293 million) joint venture to make light-duty trucks and vans.
FAW Car Co reported a slower-than-industry-average profit and sales growth in the first half of this year, as it failed to benefit from the government incentives for small cars due to its line up of medium-to-high-end models.
Automaker FAW Group of Changchun in Jilin province is said to be in merger talks with Liaoning's Brilliance China Automotive Holdings Limited, which could lead to FAW acquiring the smaller Brilliance and its three listed subsidiaries.
China First Automobile Works (FAW) and Europe's auto giant Volkswagen said Friday they would jointly invest 5 billion yuan (US$735.3 million) to build an auto plant in Chengdu, capital of southwest China's Sichuan Province.
China may encourage Shanghai Automotive Industry Corp (Group) and China FAW Group Corp, its two biggest auto makers, to buy rivals in a bid to revive the car industry, according to two people familiar with the plan.