The Chinese automaker FAW, listed on the Shenzhen Stock Exchange, has announced its intention to acquire a stake in Zhuoyu, a domestic company specializing in advanced driver-assistance technologies. The announcement was made on Monday through a statement issued by the Chinese market regulatory authority.
FAW plans to acquire the shares currently held by New Territory Technology Company. Upon completion of the transaction, FAW will hold a 35.8% stake in Zhuoyu, while New Territory, based in Hong Kong, will see its ownership decrease from the current 70.65% to 34.85%.
First Automobile Works ranks among the leading vehicle manufacturers in China, reaching an annual production of over one million units in 2004. FAW holds the second position among the so-called “Five Sisters” of the Chinese automotive industry. Founded in 1953 in Changchun with support from the Soviet automaker ZIL, the company began production of its first vehicle in 1956, the Jiefang CA-10, a truck derived from the Soviet ZIS-150 model. Two years later, in 1958, FAW launched the Hongqi, a luxury limousine reserved for members of the Chinese Communist Party.
In 1991, FAW entered into a partnership with the Volkswagen Group, establishing FAW-Volkswagen to focus on automobile production. The following year, in 1992, the company officially changed its name to China FAW Group Corporation. Subsequently, FAW formed joint ventures with Toyota in 2003 and General Motors in 2009. In 2020, negotiations were announced with CNH Industrial for the sale of its subsidiary Iveco, which specializes in commercial vehicles. The €3.6 billion deal was suspended in early 2021.
