Swot Analysis Of FAW

1486 Words 6 Pages

S1 Technical support from other country
FAW Group was the first Chinese-based company in automobile sector. Therefore, it got help from Soviet Russia in its early years including technical support, tooling and production machinery. FAW initially only made commercial trucks and its first passenger car was produced in 1958. In 2012, it was the second largest automobile manufacturer in China and 2.56millions units were sold in that year.

S2 Strong Joint Venture
This company started its first joint venture with Volkswagen AG in 1991 and followed by several other corporations including Ford motor company, General Motors, Mazda Motor Corporation and Toyota Motor Corporation. Thus, FAW successfully to transform itself from a domestic vehicle
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Xu was suspected of seriously violating discipline and breaking law. Besides a long career in the auto industry, Xu also held government and party post in Jilin province where FAW based . The day when the news of the corruption probes, FAW Car Co. closed down a 1.92percent. W2 Wrong production strategy
During Xu’ term as FAW chairperson, the internal management of FAW was a mess. Other than quite a few cases of corruption occurred, his wrong strategy for the Hongqi sedans and failure of the Xiali is the main fault that leads to company lost.
FAW’s Xiali marque recorded a net loss of 1.55-1.75billion yuan in 2014, up 223%-265% from a year earlier and as compared to a previous deficit of 480million yuan posted by FAW Tianjian.

W3 Competitive market
After extended another 25 years of cooperation with its first joint venture partner Volkswagen Group and recently one of the Big Four automaker in China which is also the largest competitor of FAW group started to investing in the Shanghai Volkswagen (SVW). Even though the extended cooperation will be significantly expand the existing research and development in China and move into new business areas in the coming years, above all in the field of alternative drive technologies. However, the participation of SAIC becomes one of the massive competition for FAW
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Based on current market trend, there are four China brands of EV cars among the top ten global sellers. This is a very good sign of customers liking and tend to go to a China brand, like FAW, when it comes to getting an EV car.
O4. Potential new market for budget truck
While the last three points are about commercial cars, FAW Car Corporation actually starts their business producing trucks and industry vehicles so we cannot just ignore the truck market if we want success for our company. The good news is that India and China have an increased demand on trucks due to their attempt of industrialization in the near future, by Norbert Dressler, et al. (2009).
Expert has predicted that the market for budget truck is wide-open with all the developing countries requiring trucks in the near future and all the leading European brands of trucks merely have premium product line in their hand. Hence, anyone that can produce a budget truck line is going to land big on the developing countries and has the potential to eat a huge portion out of the market share of said

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