Shanghai (Gasgoo)- Tianjin FAW Xiali Automobile Co., Ltd. (FAW Xiali) announced on September 28 that it transfers 100% stake in its wholly-owned subsidiary FAW Huali (Tianjin) Automobile Co. Ltd to Future Mobility Corporation (FMC), the Nanjing-based company behind the all-electric car brand BYTON. The transaction will make BYTON qualified to produce passenger vehicles (PV).
Founded in 1965, FAW Huali is FAW Xiali's only subsidiary that specializes in manufacturing micro special PVs. However, it has been suffering depression in profitability in recent years with its annual revenues slumping from RMB94.75 million in 2015 to RMB45 million in 2017.
On July 18 this year, FAW Xiali claimed that it will transfer 100% stake in FAW Huali with the value no less than RMB 1, meanwhile, required the transferee to promise to liquidate the debt of no less than RMB800 million for FAW Huali. Then, FAW Xiali announced on August 8 that the plan about transferring entire stake of its subsidiary has been approved at the general meeting of stockholders.
Some industrial analysts said that FAW Xiali transferring the stake with a tiny RMB1 is indeed to look for a company who is willing to procure FAW Huali's PV production qualification by taking over the latter's RMB 800 million-plus debt.
Established in 2016, BYTON focuses on manufacturing premium all-electric vehicles. It has previously formed partnership with FAW Group, the parent company of FAW Xiali. On July 2, the startup signed a strategic framework agreement with FAW Group in Nanjing, involving such cooperative areas as capital, technology platform, automotive parts sourcing, production qualification as well as after-sales service.
FAW Group also plans to share and integrate its NEV platform with BYTON's EV platform in order to jointly develop the next-generation BYTON and Hongqi branded EVs. Besides, both parties wish to conduct in-depth cooperation in auto parts sourcing and self-driving R&D.
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