AutoBeta(AutoBeta.net)05/21 Report--

FAW Xiali, a popular car brand in the late 1990s, was once everywhere.

In that year, the taxi market share was as high as 40%, which shows the sales and reputation of FAW Xiali in that year.

However, with the development of time, the sales of FAW Xiali declined year by year, and finally announced the suspension of production.

The predecessor of FAW Xiali is Tianjin Automobile Xiali Co., Ltd., which was established in 1997. In 2002, China first Automobile Group signed a restructuring agreement with Tianjin Automobile Industry, so it was renamed Tianjin FAW Xiali.

FAW Xiali, which has been the leader in sales for 18 years in a row, has suffered a huge loss since 2013, with a cumulative loss of about 8.233 billion yuan in six years. Moreover, FAW Xiali has not released a sales report since 2019.

According to the sales report for 2018, the cumulative sales for the whole year was only 18791, down 30.59% from the same period last year. Among them, the Xiali series of models, 0, has been discontinued. Sales in 2017 were just 5949.

In 2015, FAW Xiali hopes to change the predicament by "self-saving". Sell internal combustion engine manufacturing branch and product R & D center for 2.9 billion yuan. In 2016, 15% of FAW Toyota was sold for 2.56 billion yuan. At the end of 2018, the remaining 15 per cent stake in FAW Toyota was also transferred to FAW for 2.923 billion yuan. Without FAW Toyota shares, FAW Xiali also has no source of profit.

FAW Xiali issued a notice on April 29, intending to contribute to related land, equipment and plant liabilities. In the end, Nanjing Bojun New Energy Automobile Co., Ltd. invested in the company through cash and set up a joint venture in the company's location, with the aim of producing new energy vehicles.

Boxun Automobile said that it bought a stake in FAW Xiali with more than 1 billion yuan and has an absolute controlling stake. At present, Boxun Automobile has signed an agreement with FAW Xiali to carry out production transformation. FAW Xiali provides factories, personnel and qualifications for the production of Boxun's first model, iV6.

FAW Xiali has always relied on the sale of assets to save itself. Now, FAW Xiali has formed a joint venture with Boxun Automobile to contract the production of new energy vehicles. In the long run, Xiali may become a mediocre contract factory for other cars.

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