China FAW secures credit line in excess of 1 trillion yuan

Chinese state-owned automaker FAW group secures 1 trillion Yuan ($144 billion) credit line in a deal with 16 banks

China FAW Group Corp., a major state-owned automaker, obtained a line of credit totaling 1,015 billion yuan ($146.2 billion) from 16 domestic banks.

FAW signed the lending agreements with the banks last week in Changchun, the capital of northeast China’s Jilin province.

The credit line will provide financial backing for all its businesses, FAW said, without elaborating on specific plans for the funds.

The 16 banks include China Development Bank — a policy bank controlled by the central Chinese government, 14 national commercial banks, and Bank of Jilin — a commercial bank mainly operating in Jilin.

FAW was established in Changchun in 1956 as a state-owned commercial truck producer. It created Hongqi as a limousine brand for government agencies in 1958. Since the 1990s, the company has introduced compact sedans under the Hongqi, Besturn and Xiali brands.

FAW also operates passenger vehicle joint ventures with the Volkswagen Group and Toyota Motor Corp. in China.