FAW CAR transferred the passenger car business

FAW Car announced that it would set up a passenger car business and put it into FAW JIEFANG assets to realize the transition to the commercial vehicle business. IIA learned from the official that FAW Car will set up a wholly-owned subsidiary on June 28 according to the overall strategic plan of China FAW Group Corporation with an investment of 50 million yuan. The tentative name of the subsidiary is FAW BESTUNE Co., Ltd.

According to the announcement, FAW Car will transfer the entire equity of the subsidiary to FAW after the FAW Car transfers the assets to the wholly-owned subsidiary.

FAW Group has always been interested in achieving the overall listing, and has been sorting out the internal equity relationship since last year. In the middle of last year, FAW Huali transferred its equity to BYTON at a price of 1 yuan; then FAW Xiali transferred Tianjin FAW Toyota shares. After the re-allocation of FAW Car, the main business will be changed from passenger car to commercial vehicle, making FAW Group go further from the overall listing.