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DOC - FAW Group Corporation

By Victor Rogers,2014-12-14 06:30
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DOC - FAW Group Corporation

    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. ?

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