The board of directors of China¡¯s FAW group officially approved the establishment of the Hongqi division on March 2. The new division will bed at the same level with FAW Car Company which managed the Hongqi brand before.
FAW will also set up an operation guiding team to promote business of the new division. The guiding team consists of the manager and the vice manager of the new division as well as CEO of FAW Car Company who will be leader. But who will be the manager and the vice manager remains unknown.
An insider of FAW group said that the independence of Hongqi from FAW Car Company would allow for more room for Hongqi r to make its own decision. Moreover, business including purchase and sales will also get independent gradually in the future.
The establishment of Hongqi also means that it will take more economic responsibility and develop as a venture. Experts believe that Red Banner will embrace mass production and operation management.
