Tianjin FAW reaches overseas through Mexico joint venture

Building on their strength in the rapidly growing domestic market, China's self-developed auto brands are now increasing the pace of their international expansion.

Tianjin FAW, a subsidiary of China's largest automaker First Automotive Works (FAW), is one of the homegrown auto brands that is gaining wider international recognition.

Tianjin FAW's most recent initiative in going global is an agreement signed between Mexico's Salinas Group and FAW, the Chinese automaker's parent company.

The two sides signed a partnership agreement on November 22 forming a joint venture to assemble compact cars developed by Tianjin FAW.

Mexico's President Felipe Calderon was present at the groundbreaking ceremony for the new plant, held just one day after the agreement was signed.

The project is scheduled to begin production in 2010 with an annual capacity of 100,000 units. Before the plant becomes operational, the Salinas Group will assist Tianjin FAW to export its compact cars to the Mexican market.

On December 5, 2007, the first batch of Tianjin FAW vehicles - 2,500 of its Vita and Xiali-N3 models - were exported through Tianjin Port to Mexico.

Tianjin FAW, which aims to become a "compact car expert", began its globalization strategy at the beginning of the 11th Five-Year Plan period (2006-10) with the opening of its overseas operations department.

It has implemented its global strategy step by step - from exporting spare parts to selling complete units and developing dealerships - and has now expanded into overseas production with its first transnational assembly plant.

(China Daily 04/25/2008 page17)