FAW Car Co is to boost production of its sedan cars with a US$345m investment in its production facilities. The new factory will bosst annual production to 200,000 units, the company said in a statement.
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FAW Car, which is a division of China FAW Group, warned that although the investment carried some risk due to the worsening economic climate, in the long term it would improve the company’s competitive position.
FAW Car also reported today (27 October) that its third quarter net profit was down 3.87% on the same period last year.
FAW has joint ventures with Toyota, Mazda and VW.
In September, just-auto reported on local media reports that FAW-Volkswagen was trimming its employee count in its second plant due to the poor sales of the Magotan and Sagitar models.
It was reported that people close to the company said it had dismissed over 700 employees on slower sales of the two models.
The move comes as China’s car market cools and pressures to lower prices are increasing.
