Sources recently revealed that the Chinese government has selected FAW's upcoming Hongqi (Red Flag) C131 as its next official government car for ministry-level officials.
The Hongqi C131 is now in trial production, and sample models have been rolled out. In addition, construction of the production line has been completed. According to FAW's plan, the company is obligated to start mass production of the C131 before China holds the 18th National Congress scheduled during the second half of this year, so that all ministry-level officials can be equipped with the vehicle in time for the meeting.
FAW plans to resume and revive its proprietary Hongqi brand with the launch of the C131, which was developed based on FAW's H platform. The carmaker is expected to have an annual production capacity of 30,000 C131s by 2013. Industry analysts said that only around 3,000 officials are eligible for the car, barely impacting overall sales. As a result, the $286 million investment into the model is likely to produce a loss if the carmaker ends up selling only to the government and fails to tap the mass market.
