DOC - FAW Group Corporation

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					Preface
The date of July 15th, 2003 marked the 50th anniversary of both First Automobile Group Corporation and the birth of New China’s automobile industry.

On this date fifty years ago, a pure jade foundation stone, engraved with the good wishes of Chairman Mao Zedong for a successful and prosperous future, was planted into the warm fertile soil of Changchun, China. His enthusiastic words, ringing with the pioneering enthusiasm of FAW’s first generation of employees, signaled the beginning of China’s automotive titan.

For over 50 years, First Automobile Group, commonly known as FAW, has led both China’s automobile and truck industry with solid engineering stemming from our pride in being the country’s first, largest, and best. From making China’s most prestigious luxury limousine to the most rugged and dependable heavy trucks on the road today, FAW’s well-earned reputation for quality workmanship and innovation is fast becoming known throughout the globe.

FAW is an unusual company with a particularly exciting history. At every step of the way in creating the vehicular means in China for modern personal and commercial transportation, the company has received the steadfast support of country’s government. Working in the memory of three of China’s most famous leaders, Mao Zedong, Li Beng, and Jiang Zemin, whose thoughts expressing respect for a job well done are forever engraved for future generations of employees to be inspired by, FAW has efficiently moved forward to become a global player in the world arena.

FAW is a company with steadfast determination and intense pride. From FAW’s origins in producing the first domestic commercial truck, all-wheel-drive vehicle, and automobile in China, the company has consistently been responsible for every critical “first” in the country’s automotive history. FAW’s realizes that people are a company’s most valuable resource. Our people are a special breed, carrying forward 50 years of unparalleled heritage. They are energized at what they do, and honored by the responsibility bestowed upon them. Much of the nation’s economy indeed rides on the back of FAW’s famous “Jie Fang” brand medium and heavy trucks. FAW’s broad line of quality automobiles with state-of-the-art safety features carry children safely to school, heads of state to social functions, and families away for weekend vacations. In promoting our enduring goal to allow every Chinese family to own a car, FAW has continued to introduce and refine a wide range of vehicles in every type, size, and price to fit the needs of people across China and the world.

FAW is a company famous for bold design and innovative engineering. The company was formed during the difficult years immediately following World War II, during which the country’s resources were ravaged and pillaged by occupying foreign forces. From a meager and stark beginning, an industrial titan was born that prospered even under difficult early conditions to become a foundation stone for China’s new economy. Successfully conquering an arduous challenge never faced by most of its global competitors, FAW has skillfully made the transformation from a traditional state-run enterprise to that of a modern profit-driven organization. Following domestic and global market indicators, FAW has been rewarded with year-over-year sales records caused in no small part due to the company’s successful evolvement of its product offerings according to consumer demand.

The 16th National Congress of the CPC put forward the government’s desire to redouble its efforts designed to allow all Chinese citizens to enjoy the modern comfortable lifestyle sweeping across China due to the country’s economic prosperity. This government is in direct support of FAW’s drive to provide an affordable vehicle for every household, a policy that without doubt will benefit FAW for years to come.

FAW’s rich and interesting 50 year history parallels the exciting development of China itself. We at FAW indeed believe that we can learn from our past to promote a more brilliant tomorrow.

FAW Today
On August 25 of 2000, General Secretary of the Party Jiang Zemin made his third inspection of FAW. After a cordial review of the company, he took up a calligraphy brush and wrote “As I visit Changchun again, I am overwhelmed with pride to see the company flourishing, new talent emerging in large numbers, and receptive customers worldwide. I am indeed gratified. The company is charging ahead so fast, it bears little resemblance today to its humble beginnings”.

FAW is the mainstay of China’s automotive industry. Its headquarters is located in the city of Changchun, a beautiful tree-lined city on the China’s northeastern Songliao Plain. The company covers an area of 21.65 million square meters with 3.94 million square meters of building space and has over 124,000 employees. FAW has grown to become a company of global proportions. Current total assets in 2003 exceeded 106.2 billion Yuan (US 12.8 billion), with investments and other assets over 60 billion Yuan (US 7.3 billion). The business scope of FAW Group includes research and development, domestic and international sales and marketing, manufacturing, and financial services. Products include a full range of automobiles from mini vehicles to high-end luxury sedans, light, medium, and heavy trucks, municipal and inter-city buses, luxury coaches, and parts and components for both FAW products and a growing list of overseas OEM’s and aftermarket suppliers. Total vehicle output in 2002 exceeded 580,000 units and gross sales of 84 billion Yuan (US 10.2 billion). Since 1992, FAW has steadily risen within the top 10 ranking of China’s leading 500 companies. In 2001 and 2002, FAW was critiqued as being one of the top 10 most influential companies in China.

Key Developments at FAW
Starting life solely as a medium truck manufacturer, the company quickly broadened it product offerings to include automobiles, light and heavy trucks, and buses. Annual medium and heavy truck production capacity is currently at 200,000 units, with a new state-of-the-art plant set to go on line by mid-2005. Annual automobile production capacity stands at 400,000 units, with light trucks and mini vehicles combined at 200,000 units. FAW possesses an unusually diverse automotive line including the practical “Jiabao” mini vehicles, economical “Xiali” compact sedans, and

“Hongqi” premium luxury sedans, as well as the immensely successful FAW joint venture products manufactured in conjunction with Audi, Daihatsu, Mazda, Toyota, and Volkswagen. FAW will also soon begin production of 7-13 liter medium and heavy diesel truck engines under separate joint venture agreements with Deutz AG and Volvo Truck Corporation, each with an annual production capacity of 50,000 units.

Domestically, FAW Group consists of 28 divisions, 14 holding companies, and 26 joint ventures, with production plants located in 14 provinces throughout the country. Over 20 years ago, the company took its first step onto the global stage. During an exciting period of business growth following China’s economic opening, FAW launched its global marketing and purchasing programs. In addition, the company set up 3 overseas factories, 5 overseas wholly-owned subsidiaries, and 19 overseas representative offices. FAW is now conducting business around the world with over 1,000 overseas customers in more than 80 countries throughout Africa, the Americas, Asia, and Europe. Exports to date of CBU’s and SKD/CKD kits, representing over 20 different vehicle models to over 70 countries, have exceeded 60,000 units.

FAW presently has 3 publicly traded subsidiaries including FAW Car Co., Ltd., Tianjin FAW Xiali Automobile Co., Ltd., and FAW Sihuan Automotive Co., Ltd. The company’s strategic alliances with partners from North America, Europe, and Asia have been an important component in FAW’s strategy, enhancing our technology and improving our cost competitiveness.

To strengthen and promote development in product and process technologies, FAW has continuously exploited the capabilities of its renowned engineering and design center. The largest and most extensive in China, the center has a distinguished 40 year history currently employing over 1,800 people with a capital investment of US 2 billion. It handles R&D for cabs, chassis, drivetrain components, and complete vehicles. The center possesses both warm and cold weather testing facilities, several test tracks, and engine test cells to properly facilitate the development, modification, evaluation, and testing of future vehicles. The facility is also a government authorized testing center.

The bustling FAW of today has come a long way from that of a domestic truck manufacturer to being a global giant with a full range of cars and trucks, complimented by its strategic production and sales alliances with leading automobile and truck manufactures from around the world. FAW’s bold and ambitious nature has indeed served as a role model for China’s reforming state-run enterprises as they revamp their business plans to that suiting a market economy. As the company extends it reach around the globe, the legendary spirit of FAW proudly shines from every vehicle.

1. FAW Jie Fang Truck Co., Ltd., a wholly-owned subsidiary established on January 18th of 2003, includes 12 managerial departments, the Manufacturing Operations Group for cab and final assembly, Drivetrain Group responsible for diesel engine, transmission, and axle production, and 2 subsidiaries (Qingdao Truck Division and FAW Trading Company). The company, with 1.95 million sq. m. of building space, has assets of 19.1 billion Yuan and over 22,000 employees. Annual medium and heavy truck production capacity of the more than 500 different models of 5-30 ton trucks is currently at 200,000 units, with a new state-of-the-art plant set to go on line by mid-2005.

Manufacturing operations consists of 18 production shops within 2 assembly plants including metal stamping and cab assembly. Flexible production processes allow for 11 available production lines producing 3 types of truck cabs simultaneously, including both convention and cab-over-engine designs. ↑

2. The welding and assembly line for cab-over-engine truck cabs. ←

3. The Manufacturing Operations Group includes 12 production and functional departments, 900 employees, and 12,000 sq. m. of the production space. Present daily production capacity exceeds 330 cabs. The current facility utilizes 2 flexible production lines for “Jie Fang” medium and heavy truck production, capable of producing gasoline, diesel, conventional, and cab-over-engine trucks simultaneously. Line A began operation in July 15, 1956 and was in fact the first automotive production in China. Line B was established on January 1, 1987 to expand production. A new state-of-the-art plant set to go on line by mid-2005 will more than double production, as the company expands to meet increasing global demand for “Jie Fang” trucks. ↑ 1. The Mazda 6 stamping line, originally established at the end of 1998, consists of one 2,050 ton double action press and four 1,000 ton single action presses. After renovation in 2002 in preparation for Mazda 6 production, the line received 6 robotics units and enhanced automation. ←

2. The Axle Division of FAW’s Drivetrain Group has 7 production shops with 5,000 sq. m. of production space and 1,800 employees. The facilities 32 assembly lines manufacture axle and brake parts and assemblies for 2-30 ton trucks.←

3. FAW’s Energy Group puts the company in the convenient position of having its own 91,000 kW power plant for an assured and ample power supply. Pictured is the control room of the power sub-station at FAW-Volkswagen’s Plant II. ↑ 4. The Transmission Division of FAW’s Drivetrain Group has 8 production shops, over 1,700 employees, and the latest precision equipment for manufacturing advanced

design transmission up to the highest quality standards. The 53,679 sq. m. manufacturing plant currently produces 342 different

transmission models in support of “Jie Fang” medium and heavy truck production. The plant was designed with technical assistance from Toyota’s Hino Motor Company, and was the first facility in China to utilize the “lean production system” on a full scale. It incorporates a bill of materials (BoM) manufacturing structure, the KB-JITMIS system, and network interface (NI) local area support network. Pictured is a FANUC model DV digital machine drill in use at the flange production line. ↑ 1. FAW Forging Co., Ltd. was created as a wholly-owned subsidiary on May 31st of 2000. With 1,475 employees, the 7,000 sq. m. plant has 43 production lines utilizing the latest forging equipment. The company uses

PRO/Engineer and AutoCAD software in its design and development. It principally produces die-forged parts ranging in weight from 0.2 to 140 kg, but also manually forges parts from 0.1 to 200 kg according to customer specification. With forging capabilities for every vehicle application, the plant produces 70,000 tons of parts a year. The 125,000 kN automated front axle production line is used especially for the manufacture of front axle-related forged parts, and is 1 of only 3 in the country. Pictured is the 125,000 KN automated front axle production line. ←

1. FAW Foundry Co., Ltd. is a wholly-owned subsidiary composed of 5 production facilities, a tool and die division, foundry research center, and Sino-US joint venture subsidiary. It is the largest automotive casting company in China. It includes 6,338 employees, 350 engineers and technicians, with fixed assets of 890 million Yuan (US 107.6 million). The five 330,000 sq. m. plants include 19 casting lines. Over 280,000 tons of high quality cast products are produced yearly from gray iron, nodular iron, vermicular iron, common iron, heat-resistant steel, aluminum alloy, zinc alloy, and copper alloy. The company has ISO9000 certification. Pictured is the high-pressure micro-vibration multi-contact automated engine cylinder block casting line. The two automated casting lines purchased from Germany’s Kuenkel-Wagner GmbH with a daily box capacity of 950 are principally used for engine cylinder block production. ↑

2.

The

automated

facility,

developed

in

China,

incorporates dual-melting technology with a 45-ton cored induction holding furnace and 20-ton hot-blast cupola. It effectively improves the smelting quality of molten iron to satisfy the requirement for maintaining high

temperatures in the mass production of multi-variety production. ←

3.

The

programmable

air

impact

molding

line,

manufactured by Switzerland’s GF GmbH, has a production rate of 150 boxes per hour. The line is used for producing the cast parts including Volkswagen/Audi 06A engine blocks (Jetta, Bora, A4, A6), Wuxi Diesel 6DL engine blocks, Perkins engine blocks, and 4GE engine blocks for FAW “Hongqi” luxury sedans. ↑

4. FAW Jiaxin Heat Treatment and Electroplate Technology Co., Ltd. is a wholly-owned subsidiary carrying out research and development, production, sales, and after sales support. Originally founded as FAW’s proprietary heat treatment plant some 40 years ago, the company now also designs and manufactures complete heat treatment and electroplating systems for customers around the world. For heat treatment, the company offers automated continuous

(single or double row) carburizing lines, isothermal annealing automated lines, batch-type furnaces, automated quenching and tempering lines, quenching and aging furnace lines for aluminum alloys, rotary hearth furnaces, rotary drum furnaces, endothermic gas generators, shot peening machines, and abrasive blasting machines. Electroplating equipment offered includes automated micro-crack piston rod chrome plating lines, push-type electroplating lines, automated piston ring chrome plating line, automated polishing equipment, electroplating environmental management equipment and systems, and related power supply equipment. The company’s production group handles heat electroplating treatment for over 2,000 different parts. Pictured is a gantry crane in operation at an automated zinc and chromium electroplating line suitable for mass production of small parts. A zincate bath is utilized which is adaptable to various iron and steel parts. Following zinc plating, parts receive a passivate plating treatment in various colors such as white, black, or green. The passivated zinc coating offers better corrosion-resistance and is capable of passing the salt spray test for up to 144 hours. ↑

5. FAW Jiaxin Heat Treatment and Electroplating Technology Co., Ltd. designs and manufactures commercial automated continuous (single or double row) carburizing lines, utilizing radiator tubes for optimal heating efficiency and temperature uniformity. The accuracy of temperature control range is from +5 to –5 degrees centigrade. ←

1. FAW Tool Co., Ltd. is a wholly-owned subsidiary subordinate to FAW Group’s Tool Design Institute. It includes 10 production shops totaling 54,380 sq. m. and 1,500 employees. The company specializes in the development and production of non-standard tools for the special needs of the world’s automotive manufacturers. ←

2. FAW Tool and Die Co., Ltd., a wholly-owned FAW subsidiary, is the leader in China’s automotive die industry. The company has 780 employees and fixed assets of 330 million Yuan (US 39.9 million). The 48,000 sq. m. plant, employing the latest precision machine tools and measuring instruments, includes 16 digitally controlled milling machines, a 6-spindle laser cutting machine, and 24 adjustment presses. The facility provides dies domestically for the Audi A6, Jetta, Red Flag luxury sedan, Bora, Tianjin FAW Toyota, FAW Mazda and Chery Automobile. It also enjoys strong overseas sales in Germany, Japan, Southeast Asia, South Africa, and Argentina. ↑

3. A worker at FAW Tool Co., Ltd. moves an overhead gantry crane into position. A side milling head attached to the main spindle is able to bore and drill five pattern faces of a large box case in a single process. ↑

4. FAW Sihuan Automotive Co., Ltd., 31.57% owned by FAW Group, was established in 1997. It included 7 divisions, 2 engineering and design centers, and over 5,000 employees. The company

independently designs, produces, and markets a complete range of medium and heavy truck bodies, steel wheels, and components for both FAW and other manufacturers. The company has several joint ventures with overseas suppliers, including Mann+Hummel GmbH, Johnson Controls, and Tower Automotive. FAW Sihuan Automotive Co., Ltd. – Wheel Division is the largest manufacturer of vehicular wheels in China. The medium and heavy truck wheel production line utilizes state-of-the-art equipment from Germany and Holland to assure world-class quality standards. The company is the sole supplier for FAW medium and heavy trucks. It also supplies wheels to both domestic luxury coach manufacturers and overseas customers throughout Africa, the Americas, Asia, and Europe. ↑ 5. Changchun Fawer-Johnson Controls Automotive Systems Co., Ltd. (FJC), a joint venture between FAW Sihuan Automotive Co., Ltd. and Johnson Controls Inc., has 1,900 employees. The company’s 85,934 sq. m. plant includes 4 production lines utilizing advanced slush molding machine, foaming production line from ABM GmbH, and injection molding machines. It produces a wide range of interior components including automotive seats and seating systems, seat trim covers, seat mechanisms, seat foam padding, instrument panels, door panels, headliners, instrument clusters, parcel rack, overhead consoles, and electronics. Customers include FAW-Volkswagen (VW, Audi), FAW Car Co., Ltd., and FAW Jie Fang Truck Co., Ltd. Pictured is a state-of-the-art high-pressure water jet cutting machine in the production of interior trim for FAW’s cab-over-engine trucks. An ABB manipulator is used in conjunction with an Ingersoll-Rand high-pressure water pump. The machine is used for cutting instrument panels, headliners, and floor matting with the cutting precision of 0.1 mm. ↑ 6. The automated vacuum molding machine uses a vacuum absorption process to apply the outer cloth trim to interior trim panels. During the molding process, the machine constantly analyzes processing data and makes adjustments relative to preset input data. It can be quickly reconfigured to handle trim panels of different shapes and sizes. ←

1. The Shenzhen listed FAW Car Co., Ltd. was created in 1997 from the merger of FAW Group’s former First Car Factory, Second Car Factory, Second Engine Factory, and Changchun Gear Factory. The company has registered capital of 1.6 billion Yuan (US $193.5 million) and total assets of 7 billion Yuan (US $846.4 million). Total factory area is 710,000 sq. m. with 7,300 employees. Current products are the “Hongqi” luxury sedan and limousine series, and Mazda 6 sports sedan. The Changchun Gear Division of FAW Car Co., Ltd. has approximately 2,000 employees in a modern 150,000 sq. m. production facility. Its 11 production shops have an area of 150,000 sq. m. and employ the latest precision manufacturing equipment. Products include 1-3 ton light truck transmissions and Audi type 016 5-speed manual transmissions. ↑

2. FAW adopted Volkswagen AG’s quality management system involving “quality audits” throughout the production process. The principal concept is to evaluate quality levels from a customer’s point of view and eliminate shortcomings prior to the vehicle leaving the factory. The company utilizes a highly trained staff of quality experts who randomly sample parts, components, and assembled vehicles.→

3. The type 016 transmission assembly line at FAW Car’s Changchun Gear Division. ↑ 4. Construction of FAW Car Co., Ltd.’s new 21,997 sq. m. final assembly line in western Changchun was completed in 2000. Producing the “Hongqi” luxury sedan and limousine, it includes an interior trim line, chassis line, sub-assembly line, test stations, and final inspection facilities. The line has 105 assembly stations employing the latest precision assembly processes and equipment. The world-class automated inspection line utilizes state-of-the-art alignment apparatus, light detectors, dynamometers, and five-gas exhaust analyzers. ↑ 1. The Second Engine Division of FAW Car Co., Ltd. is a principal manufacturer of car and light-truck engines, producing Chrysler derived 2.2 liter 4-cylinder engines since 1991. The 60,000 sq. m. factory includes modern machining lines, automated production lines, and test cells. Engines are produced meeting three different emissions standards criteria. The factory produces 3 different emissions level engines with multi-point fuel injection systems from Siemens VDO Automotive AG. Pictured is the Second Engine Division’s AT&T hot and cold engine test system that is capable of detecting 24 items over 80 parameters under various operating conditions. ↑

2. The crankshaft production line uses state-of-the-art machinery from leading global manufacturers to assure precision grinding of the main shaft and connecting rod journals with surface finishes less than Ra 0.4. The deep-rolling equipment, imported from Germany, crankshaft balance within 15 g/cm. ←

3. The engine assembly line produces two variations of the CA4 family of engines, the CA4G22E and CA4G25E. These 2.2 liter inline overhead cam engines have a reputation for reliability, low noise, solid power, and long life.→

4. The 17,010 sq. m. Mazda 6 welding and assembly line of FAW Car Co., Ltd. was established in December of 2002. It includes a front/ rear floor line, side panel sub-assembly line, small parts distribution area, 4 door and 2 panel sub-welding and pressing areas, a central welding line, and replenish-welding and adjustment line. The welding and assembly line is capable of producing a variety of body-in-white assemblies and over 64 sub-assemblies. The central welding line utilizes 22 high-speed robots for welding, replenish-welding, handling, assembling and walking. For quality assurance, arc data monitors are employed which measure current and voltage, rejecting any welds exceeding set tolerances. ↑

5. The Second Foundry Division of FAW Foundry Co., Ltd. produces precision automotive high strength thin-wall engine block castings. ↑

FAW-Volkswagen Automobile Co., Ltd. is a large-scale joint venture automobile manufacturer between FAW Group and Volkswagen AG, with share investments of 60% and 40% respectively. Volkswagen’s investment is subdivided between Volkswagen AG (20%), Audi AG (10%), and Volkswagen Automobile (China) Investment Co., Ltd. (10%). FAW-Volkswagen Automobile Co., Ltd. was established in 1991, with the first Jetta automobile rolling off the assembly line on December 15th of that year. Audi AG became a member of the partnership in 1995, and full scale production commenced in July of 1996. Following 10 years of continuous construction and development, the product offerings of FAW-Volkswagen have extended from the Jetta sedan to include the Bora V, Golf IV, Transporter T4, Caddy MPV, Audi A4, and A6. Production capability has reached an annual output level of 330,000 vehicles, 300,000 engines, and 180,000 transmissions. On July 1, 2003, the board of directors of FAW-VW Automobile Co., Ltd. approved the construction of FAW-Volkswagen’s 660,000 sq. m. Plant II, while simultaneously increasing the total investment from 11.13 billion Yuan to 23.435 billion Yuan (US $2.8 billion) with a registered capital increase from 3.71 billion Yuan to 7.812 billion Yuan (US $945 million). Plant II consists of 4 production areas, including stamping, welding and sub-assembly, painting and sub-assembly, and final assembly. Production is focused on the new PQ35 platform which includes the Bora V and Caddy MPV. ↑ 1. The circular 120 meter transmission assembly line at

FAW-Volkswagen uses Bosch and Atlas Copco tooling incorporating DC electric motors to monitor the torque applied to fasteners during the assembly process. Gasket sealant is applied to the mating surfaces of the transmission case using a Yaskawa robotics system. After final assembly, transmissions undergo leak detection and performance testing. ←

2. The FAW-Audi 2.2 liter 5-cylinder engine assembly line at FAW-Volkswagen, completed in 1996, includes 3 engine cylinder head sub-assembly areas, and short and long block assembly areas. Cylinder heads are assembled, sealed, and tested with robotics supplied by ABB. The short and long block assembly lines are both high production automated assembly lines including multi-spindle engine assembly stations supplied by DGD/Automated Systems. →

3.

The

800-ton

Umformtechnik

ERFURT

3-stage

multi-station

automated press at FAW-Volkswagen keeps the loading, unloading, and transferal processes synchronized. It stamps 22 different Jetta panels, 9 Audi panels, and 7 Bora panels. ↑

4. The paint system at FAW-Volkswagen utilizes the innovative RoDip dip painting method from Durr Technologies Group which provides optimum coverage of all body surfaces and cavities. Pretreatment includes an application of phosphate coating for corrosion protection and to provide a bonding layer for paint application. This cutting edge technology allows Volkswagen AG to offer corrosion perforation warranty coverage for an amazing 12 years. ←

5. The FAW-VW Parts Distribution Center, a joint venture between FAW Sihuan Automotive Co., Ltd. and Volkswagen AG, is the largest automotive spare parts distribution center in China. With a total investment of 170 million Yuan (US $20.6 million), the expansive 102,000 sq. m. facility sits on a 150,000 sq. m. site and maintains an inventory of over 28,000 different parts and components. The facility uses a modular management system to supply production parts to FAW-Volkswagen’s Plant I and II. Third party logistics are employed to supply spare parts to FAW-Volkswagen’s 6 regional spare parts distribution centers throughout China. ↑ 6. The Audi assembly line at FAW-Volkswagen’s Plant I has 70 work stations, 65 sub-assembly stations, and 41 inspection stations. The production line employs a modular assembly process, including the drive system module, front-end module, chassis module, door modules, etc. ← 7. The production process at

FAW-Volkswagen’s body welding and assembly line includes spot welding, CO2 welding, bolt welding, brass soldering, protruded welding, assembly, polishing, sealant application, pressing, curing, and heating. The Audi A4/A6 and VW Bora also use laser welding technology in conjunction with the new technique of punch riveting in applying pressed body panels to the car’s extrusions for 30% stronger joints than conventional spot welding. The complete body shop and conveyor system is networked by means of INTERBUS with optic fiber cables, which are immune to electromagnetic influences. ↑ 1. The FAW Engineering and Design Center was certified in 2001 as a state-level research center appointed by the National Economic and Trade Commission, State Taxation Bureau, and State Customs. In 1999, the center ranked 7th among the nation’s 231 R&D facilities and the 1st within the machinery industry. The center has 1,340 engineers and technicians within its 355,000 sq. m. facility. Assets total 470 million Yuan (US $56.8 million). The center has established itself as an impressive forward-thinking force within China’s vehicle industry, something FAW is quite proud of. Pictured is the electromagnetic compatibility (EMC) laboratory constructed by Schaffner Holding AG,

the international leader in EMC design. The laboratory conducts research to ensure the safe and reliable use of vehicular electric and electronic components via EMC emission and immunity testing. ← 2. The FAW Engineering and Design Center pursues

development, modification, evaluation, and testing of future light, medium, and heavy trucks, as well as automobiles and mini vehicles. Because FAW controls the design and production of its chassis and drivetrain components, the company can engineer its engines, transmissions, suspensions, and axles to

compliment each other for optimum performance and efficiency. The latest in computer-aided design, including CAD, CAE and CAM, are widely during the development process. To date, the center has developed over 1,000 prototype vehicles, winning over 200 design awards from various state ministries. ←

3. Engineers evaluate the results of a simulated engine vibration test program. ←

4. The FAW Engineering and Design Center recently launched wheel testing according to the newly introduced J2530 specifications which meets GB, ISO, SAE, JIS, and DIN requirements. The trio of test involve a curb-strike simulation, sustained radial loading (driving in a straight line), and continuous cornering. The tests apparatus can stimulate the destruction of a tubeless rim during impact to improve a rim’s ability to sustain damage for enhanced safety. The curb-impact test involves a 13-degree side impact against the sidewall/rim region. The rolling fatigue test involves running an alloy wheel and tire against a spinning drum for 600,000 revolutions without an air leak due to fatigue. Cornering resilience is conducted on a torture device that applies a rotating bending load to an alloy wheel for 50,000 cycles without the appearance of excessive bending. ←

5. FAW Qiming Information Technology Co., Ltd is a wholly-owned FAW subsidiary. Established in December of 2000, the company has 6 focused groups: business development, sales marketing, after sales support, administrative, system integration, and GPS research and development. It presently has 405 employees. The Vehicle Monitoring Division of FAW Qiming’s GPS Research and Development Group uses a state-of–the-art communications network from Avaya to monitor over 3,000 vehicles throughout China. ↑

1. The FAW Engineering and Design Center carries out impact and vibration analysis for various parts and components including safety belts, seat assemblies, steering wheels, airbags, and bumper assemblies. ←

2. The Engineering and Design Center’s Lambda SP machine was purchased from the DEA division of Hexagon Metrology, one of the premier makers of gantry coordinate measuring machines. The gantry architecture of this machine along with its extra-large measuring volume and dynamic metrological performance allows dimensional inspection of very large automotive components. DEA’s CHORUS NT software, a true DMIS (dimensional measurement interface specification) software using the world standard programming language for coordinate measuring machines, is used for high-level processing of various metrological tasks. SURFER software is also used for its superior contouring, gridding, and surface mapping abilities. ↑ 3. The 9th Industrial Machinery Design and Research Institute, a wholly-owned FAW subsidiary since 1958, is the largest class A design institution in China for automotive plant design. The staff includes 415 specialized engineers, 2 state-level master designers, 6 state subsidized specialists, 20 senior research engineers, 210 senior engineers, and 170 engineers. Since its inception, it has completed over 5,000 projects involving automobile plant design and civil engineering in 30 provinces within China and 8 countries. ←

4. Master design engineer Han Yunling, chief engineer of the 9th Industrial Machinery Design and Research Institute, joins other senior engineers in studying the project plan for building FAW-Volkswagen’s new Plant II. ←

5. The institute-designed car painting line at FAW-Volkswagen. ↑ 6. FAW uses a road test system from RS Technologies and CAESAR DataSystems to analyze the design, reliability, and structural integrity of components on light, medium, and heavy trucks. The wheel-force transducer (WFT) from RS

Technologies measures 3 components each of road load force and torque at the wheels under actual road conditions. The system combines high-accuracy measurement, data recording, and data analysis with integrated sensors, electronics, and software. The computer-aided data-acquisition (CADA)

hardware and software from CAESAR DataSystems provides on-board signal conditioning, shunt calibration, angular position calibration, and signal transmission. ↑ 7. The cold weather automotive testing facility of FAW’s engineering and design center is the only one of its kind in China, conducting frigid weather evaluations on future FAW vehicles and components. The facility also conducts quality and design evaluations on competitive brand vehicles. The test grounds cover an area of 960,000 sq. m. and include a 4,000 m. high-speed test track and China’s only wind tunnel developed exclusively for automobile testing. ←

8. FAW’s Education and Training Center promotes continuing education with a focus on the automotive industry. The center was honored as a “National Institution for Advanced Education” and “National Institution for Advanced Scientific and Technical Training”. The 71,000 sq. m. facility sits on a beautiful 174,000 sq. m. campus. It has 6 schools including experimental automobile engineering, machinery and electrical equipment technical training, automation and computer training, and experimental machine design. The faculty consists of 192 full-time teachers, including 87 professors, associate professors and senior engineers. The center has produced 31,200 graduates of various majors. Among the alumni, 150 graduates have gone on to become high level leaders with FAW, while over 3,000 attained management positions. The school has also trained more than 500,000 FAW employees within its non-degree program. ↑ 1. FAW’s Harbin Light Truck Division, a wholly-owned subsidiary of FAW, manufactures compact pickups and 1-3 ton forward control tilt-cab light trucks. Merged with FAW Group in September of 1993, it has 4,884 employees operating a 750,000 sq. m. plant with 45 production lines. The factory has an annual capacity of 60,000 units for 1-3 ton trucks, producing over 100 gasoline and diesel-powered light trucks in standard, extended

cab, and crew cab variations. ↑

↑2. The rear axle assembly line at FAW’s Harbin Light Truck Division. 3. The pickup assembly line at FAW’s Harbin Light Truck Division is capable of producing 40,000 units annually. The line produces both the CA1021 pickup and CA6480 SUV. ↑ 4. FAW’s Harbin Transmission Division is a wholly-owned subsidiary of FAW. An expansive 176,700 sq. m. facility with 1,929 employees, it has total assets of 397 million Yuan (US $48 million). The facility manufactures light, medium, and heavy transmission, as well as bevel gear sets and power take-off gears for the whole range of automotive and truck applications. The company’s modern development equipment includes a rotor measurement system from M&M Precision Systems Corporation, which uses an ultra-precise 3-dimensional analog scanning sensor to support 3 modes of operation: point-to-point, high-speed scanning of known surfaces, and precision scanning of unknown surfaces while maintaining constant selectable probe force. Engineers can obtain precise measurements of peripheral pitch aggregation, adjacent peripheral pitch, spiral guide distances, and involute gear profiles. ←

5. In the last decade, the business of FAW’s Harbin Transmission Division has shifted into high gear with a dramatic rise in heavy truck transmission sales. Besides producing the popular CA6-85 6-speed transmission, the new CA7-95 7-speed transmissions has enjoyed tremendous popularity in the heavy truck market with production now exceeding 10,000 units per month. ←

6. The annual overall output at FAW’s Harbin Transmission Division for bevel gear sets is 400,000 sets. ↑ 1. FAW’s Jilin Mini Vehicle Division, a wholly-owned FAW subsidiary, specializes in the production of the immensely popular “Jiabao” mini van and pickup. It produced China’s first mini-vehicle in 1981, and now operates with an annual production capacity of 100,000 units. The 239,734 sq. m. plant with over 7,180 employees includes 7 stamping lines, 3 body and welding lines, a modern paint line, and 3 final assembly lines.← 2. The CA6350 mini van was launched on July 15, 1997. ←

3. FAW’s Siping Truck Body Division, a wholly-owned FAW subsidiary, is focused on the manufacturer of both standard and specialized truck bodies for almost every application. Its 11,600 employees produce over 13,000 truck-mounted

bodies and 36,000 trailers annually in the modern 250,000 sq. m. facility. The Siping Division also offers truck-body combinations, utilizing FAW “Jie Fang” medium and heavy truck chassis, which have been custom engineered around specific applications to increase uptime, durability, reliability, and performance. Leading products are Siping’s 5-20 ton dump bodies, 10-30 ton semi-trailers, concrete mixer bodies, 5-30 ton tank bodies and trailers, 9.6-12.5 m. van bodies and trailers, and 6-8 post auto transport trailers. ↑

4. A special order of tank trucks for China’s Sinopec Corporation. ↑

5. The engine installation line at FAW’s Jilin Mini Vehicle Division. ↑ 6. The Jilin Standard Parts Division of Fawer Automotive Parts Co., Ltd., a wholly-owned FAW subsidiary, has 40 years of experience in supplying automotive quality parts

and fasteners to the vehicle factories Group. ← 7. The electroplating line at Fawer Automotive’s Jilin Standard Parts Division. → 1. The Dalian Diesel Engine Company was established in 1952 and became a division of FAW Group in 1986. Dalian Diesel along with FAW’s Wuxi Diesel Division forms the backbone of FAW Jie Fang Truck Co., Ltd.’s Drivetrain Group. It manufactures 85-300 HP diesel engines for FAW’s light, medium, and heavy trucks with an annual production capacity of 100,000 units. The company’s present 178,000 sq. m. 16 line plant has over 2,300 employees and total assets of 1.56 billion Yuan (US $188.6 million). The company is presently building a new state-or-the-art facility on a 300,000 sq. m. site for its new joint venture with Deutz AG. The new plant will produce 90-220 kW Deutz diesel engines for 7-16 ton FAW “Jie Fang” trucks. It will include a US $9.2 million ABB high-tech engine assembly line including robotics and related equipment, control system, data collection system, and display system to monitor the 105 manufacturing stations. The 6,500 sq. m. line will consists of an engine internal assembly line, external assembly line, cylinder head line, and piston and connecting rod assembly line. The company applies “just-in-time” production methods, and takes advantage of the latest equipment from around the world for its production, control systems, high-speed cutting, machining, and testing. Dalian Diesel has 3 modern engineering and design centers for the development, modification, evaluation, and testing of future engines that include advanced engine test cells, combustion analysis systems (CAS), and noise measurement testing systems. ↑ assembly of FAW

2. A Toyoda GL7 mass production crankshaft grinder on the machining line at FAW’s Dalian Diesel Division. ↑

3. RIFA RFMV1700 vertical machining centers processing connecting rods at FAW’s Dalian Diesel Division. ←

4. A row of Toyoda FH100B horizontal spindle machining centers processing engine cylinder blocks at FAW’s Dalian Diesel Division. ←

5. The Dalian Division of FAW Bus and Coach Co., Ltd. manufactures medium and large city transit buses, intercity buses, and luxury coaches under the “Jie Fang” and “Yuanzhen” brands. The modern and spacious 186,300 sq. m. factory area consists of a bus welding and assembly line, paint line, final assembly line, and inspection line. Pictured is the automated rolled steel welding machine assembling roof panels. ←

6. An automated spot welding machine applying welds to the trusses of a roof frame at FAW Bus and Coach’s Dalian Division. ←

7. The advanced 6,354 sq. m. paint line at FAW Bus and Coach’s Dalian Division handles sealant, foaming, powder coat, primer, filler, and final paint application. ←

1. FAW Tianjin Xiali Automobile Co., Ltd. is a joint venture between FAW Group Corporation (51%) and Tianjin Automotive Industry (Group) Co., Ltd. (49%). The 48,740 sq. m. headquarters and manufacturing facility has over 6,000 employees and total assets of 7.678 billion Yuan (US $928.4 million). The factory utilizes modern production line equipment and techniques for stamping, body welding and assembly, painting, final assembly, and inspection. Annual production capacity for both Xiali and Toyota brand products is 200,000 units. ↑

2. The Xiali Vela sedan and Vizi hatchback produced by FAW Tianjin Xiali Automobile Co., Ltd. are based on Toyota’s successful Platz and Vitz “new body concept” (NBC) platform. The 10,151 sq. m. production facility was designed with technical support from Toyota Motor Corporation along their new “global body line” (GBL) concept for maximum efficiency. ←

3. Xiali Vizi 4-door hatchbacks arriving at the final inspection area. ↑

4. Tianjin FAW Toyota Automobile Co., Ltd. is a joint venture between FAW Group and Toyota Motor Corporation, located in Tianjin. The Toyota Corolla and Vios sedans are built in a modern 10,000 sq. m. complex using Toyota’s new “global body line” (GBL) production principals. With the innovative GBL system, the plant can easily add/switch models or ramp up production of existing models within a short time. The line uses fewer multi-jig robots in favor of new-generation single task units which are smaller, more precise, and energy efficient. Where several clamps would have been required in the past to maintain dimensional accuracy, the sensitive touch of the new non-hydraulic robots is so delicate that no clamps are necessary. ←

5. FAW Huali (Tianjin) Automobile Co., Ltd. is a joint venture between FAW Group Corporation (75%) and Tianjin Automotive Industry (Group) Co., Ltd. (25%). The company has fixed assets of 500 million Yuan (US $60.5 million) with 3,527 employees on a 360,000 sq. m. site. The Daihatsu 850 mini van was introduced by the former Tianjin Huali Automobile Co., Ltd. to the Chinese market in 1984, with final output of all variations totaling over 600,000 units. In 2001, Tianjin Huali entered into agreement and commenced production of the popular Daihatsu Move MPV. In 2002, as a result of FAW Group’s merger with Tianjin Automotive Group, FAW absorbed Tianjin Automotive’s 75% share in Tianjin Huali. In 2003, FAW Huali and Toyota subsidiary Daihatsu Motor Co., Ltd. signed a technical license agreement to launch production of the Terios compact SUV. The Terios is sold in China through Toyota’s sales network under the company’s new Dario brand. ↑ 1. The Qingdao Truck Division of FAW Jie Fang Truck Co., Ltd., a wholly-owned subsidiary, is FAW’s heavy truck production location for eastern China. The factory, which merged into FAW Group in 1993, has 2,900 employees and an area of 410,000 sq. m. The division also has 2 satellite productions facilities in Pudong and Chengdu. The Qingdao location’s 2 assembly lines produce medium, heavy, and severe-duty “Jie Fang” brand trucks as well as custom engineered truck-body combinations using “Jie Fang” truck chassis at a maximum daily build rate of 300 units. In 2002, production exceeded 70,000 units with gross sales of 10 billion Yuan

(US $1.2 billion). The factory produces 8 variations of 4-16 ton straight trucks, available with 5.4-9.6 m. bodies, and both single and tandem axle tractors. Day, single-bed, and two-bed high-roof sleeper cabs are available. A full range of turbocharged and intercooled 160-320 HP diesel engines is offered. ←

2. FAW’s Qingdao Truck Division utilizes a 5,100 ton press from SMS Hasenclever GmbH and Siemens Simatic S7-400 WinCC-equipped programmable control system to produce over 100,000 frame rails annually. ←

3. The paint line at FAW’s Qingdao Truck Division. ←

4. The cab welding and assembly line of the Qingdao Truck Division can simultaneously produce the company’s various cab designs. ←

5.

FAW’s

Shandong

Body Division, founded in 1968 and a

wholly-owned subsidiary since 1994, produces “Pengxiang” brand truck-body combinations, steer and drive axles for trucks and buses, and trailer axles. The 210,000 sq. m. plant with over 11,500 employees has total assets of 400 million Yuan (US $48.4 million). Its 8 modern production lines manufacture over 80 models of dump bodies, semi-trailer, van bodies and trailers, and the tank bodies and trailers with annual production in excess of 6,000 units. The factory produces 4 series of 10 and 13 ton axles in more than 10 varieties, including drive axles with planetary hub reduction, with an annual capacity of 120,000 units. ↑

1. The 6 MCX machining centers from Burkhardt+Weber BW allow FAW’s Wuxi Diesel Division to machine cast iron, steel, and aluminum from up to 5 sides with wide diameters and long bores. ←

2. The Wuxi Diesel Engine Division of FAW Jie Fang Truck Co., Ltd. operates a 500,000 sq. m. plant and headquarters with total assets of 2 billion Yuan (US $241.8 million). The factory’s over 4,000 employees produce 4 and 6-cylinder 120-335 HP diesel engines, including the new high horsepower CA6DL series, as well as custom engineered truck-body combinations using “Jie Fang” truck chassis. Over 150,000 diesel engines and 7,000 truck-body combinations are produced annually. FAW’s Wuxi Diesel Division, along with the Dalian Diesel Engine Division, is a critical engineering and design hub for the development, modification, evaluation, and testing of future diesel engines. In 2002, the QS9000 certified company ranked number one in the production and sales of diesel engines in a single series with over 150,000 units sold. ↑

3. Managers and technicians analyze the quality of new engine camshafts. ←

4. The cylinder head line at FAW’s Wuxi Diesel Division has an annual output of 120,000 units, utilizing 18 YNC machine centers and 2 automated production lines. ←

5. The automated distribution center at FAW’s Wuxi Diesel Division covers an area of 1,152 sq. m. The distribution facility incorporates high bay shelving, VNA (very narrow aisle) pallet storage, and multi-station order consolidation. ←

6. The Wuxi Division of FAW Bus and Coach Co., Ltd., a member of FAW Group since 1986, manufactures medium and large city transit buses, intercity buses, and luxury coaches with a focus on China’s southern market. The 115,000 sq. m. factory with 1,200 employees has fixed assets of 120 million Yuan (US $14.5 million). The factory annually produces over 2,000 complete buses and 5,000 bus chassis. ←

7. The 150 meter long assembly line at FAW Bus and Coach’s Wuxi Division can assemble 30 units simultaneously. The division’s solid domestic business is complimented by strong overseas sales including the countries of Kenya, Iraq, and Pakistan. ←

8. The welding and assembly line at FAW Bus and Coach’s Wuxi Division. ↑

1. FAW’s Wuxi Injection Pump and Nozzle Research Institute, previously associated with the Ministry of Machinery, became a satellite research facility under FAW’s central engineering and design center in 1995. The institute, originally focused on the research and advancement of diesel fuel injection systems, has in recent years expanded its role to include diesel engine research and design including low emissions development. The facility has made notable achievements in engine electronics and intake and exhaust system efficiency for enhanced fuel economy and reduced emissions. In 1998, the institute became the first school for higher education in China affiliated with the commercial vehicle engine industry to offer a doctorate in mechanical engineering. The institute carries out advanced diesel engine testing according to established government standards. The facilities test standards for performance, reliability, and emissions, which meet or exceed those set forth by Volkswagen AG, have been developed in consultation with AVL List GmbH and FEV Motorentechnik GmbH. ↑

2. Common rail diesel injection systems such as this example on a test stand represent an exciting new technology which delivers excellent performance and economy with lower emissions. The institute has taken a lead role in the domestic development of common rail systems in conjunction with advanced electronics. ←

3. The cylinder head gas flow development platform allows engineers to take advantage of computational fluid dynamics (CFD) technology and simulate gas flow and heat transfer to optimize cylinder head design. ←

4. The engine exhaust emissions test laboratory of FAW’s Wuxi Injection Pump and Nozzle Research Institute. ←

5. FAW’s Wuxi Injection Pump and Nozzle Research Institute.→ 6. Wuhu FAW Yangzi Automobile Co., Ltd. is a joint venture between FAW Group, Yangzi Group, and Wuhu Automotive Industry Company. Total investment is currently 560 million Yuan (US $67.7 million). The company’s 270,000 sq. m. plant, a strategic manufacturing location for FAW Group in southern China with over 750 employees, annually produces over 30,000 1-3 ton trucks, custom bus chassis, and complete medium buses. The company possesses an in-house CAD design center, comprehensive stamping facility, and a 10-line production plant. ←

7. The headquarters of Wuhu FAW Yangzi Automobile Co., Ltd. ↑

1. FAW Group launched Chengdu FAW Automobile Co., Ltd. in 2002, after acquiring an 80% stake in Sichuan Bus Company. The new relationship immediately gave FAW a strategic relationship with Toyota Motor Company. As Sichuan Bus had been producing Toyota Coaster medium buses with Toyota Motor Corporation under their Sichuan Toyota Automobile Co. Ltd. 50-50 joint venture since 1998, FAW Group acquired a controlling stake in Sichuan Toyota as well. Chengdu FAW produces “Huaxi” brand light and medium buses, and spare parts, while Sichuan Toyota has complimented Coaster production with the introduction of the Toyota Landcruiser Prado SUV. Chengdu FAW’s joint venture with Araco Corporation, Chengdu Araco Automobile Trim Part Co., Ltd., produces interior trim parts to meet the needs of Sichuan Toyota. ←

2. The engine installation line for “Huaxi” brand buses at Chengdu FAW Automobile Co., Ltd. ←

3. FAW’s Sichuan Special-purpose Truck Division, a wholly-owned subsidiary with total assets of 220 million Yuan (US $26.6 million), covering an area of 264,000 sq. m. with over 1,000 employees and has total assets of 220 million Yuan (US $26.6 million). The factory produces more than 100 kinds of special-purpose trucks including specialized military vehicles. Pictured is a digitally-controlled cutting machine. ←

4. FAW Hongta Yunnan Automobile Co., Ltd. was created in 1997 when FAW Group purchased controlling interest in Hongta Yunnan Automobile Co., Ltd. FAW Group has a 51% stake, with Yunnan Hongta Group (30%), and Yunnan Light Vehicle (Group) Corporation (19%) holding the remainder. The manufacturer until 2003 was exclusively a producer of 1/2-3 ton pickups and light trucks. Daihatsu Move MPV’s built under license began to roll off the assembly line in September of 2003. The company has 2,800 employees among 6 factories. The company has experienced rising exports to Southeast Asia, the Middle East, and the Americas, totaling over 5,000 units thru 2001. The company established a new production record in 2002 with overall sales exceeding 30,000 units. Current production capacity rests at 66,000 units for complete vehicles and 120,000 for light truck cab and chassis. ↑ 5. FAW Hongta’s welding and assembly line includes 275 sets of main dies and jigs with 14 robotic welders. ←

6. The welding and assembly line at FAW Hongta Yunnan Automobile Co., Ltd. →

7. FAW Hongta’s new stamping plant has 3 parallel lines with 15 Komatsu-designed Corporation. ← presses from China Heavy Machinery

1.

FAW’s

Shenzhen Marketing, Sales, and Service Research Division is the company’s in-house “think tank” for developing advanced concepts in sales marketing and after sales support. ←

3/4. FAW’s 21,000 sq. m. Hainan Island Test Grounds was established in 1958 as China’s first advanced semi-tropical vehicle testing facility. The facility performs final evaluations of design and quality for FAW vehicles, as well as vehicle appraisal and providing state-certified and internationally recognized inspection reporting. The facility’s location at 670 m. above sea level with average temperatures of 24 degrees and humidity levels of 85% provide ideal warm weather testing conditions. The location’s 6 km. long high-speed test track includes straightaways, banked curved, flat curves, and reverse curves. ↑ 5. FAW’s Liuzhou Truck Division, a wholly-owned subsidiary, operates a 155,000 sq. m. manufacturing facility with over 500 employees. The division has fixed assets of 110 million Yuan (US $13.3 million) and an annual production capacity of 1,000 units. The plant produces 6-12 ton “Jie Fang” and “Shenli” brand trucks in both truck chassis and specialized truck-body combination form that have been custom engineered around specific applications. The factory enjoys a strong reputation in China’s southwestern region for the robust design of its trucks. ↑

6. FAW Hainan Automobile Co., Ltd., a wholly-owned subsidiary located on beautiful Hainan Island, is the group’s southernmost production facility. The plant produces both the Mazda Premacy MPV and Familia (323) compact sedan. ←


				
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