FAW-Volkswagen Automobile Co. Ltd. was established in 1991, with the first A2 Jetta automobile rolling off the assembly line on December 5th of that year. Audi AG became a member of the partnership in 1995, and full scale production commenced in July of 1996. Government approval for construction of a new factory with an annual capacity of 150,000 units was received in 1997.
Following 10 years of continuous construction and development, the product offerings of FAW-Volkswagen have extended from the Jetta sedan to include the Bora IV, Caddy MPV, Golf IV, Magotan (European Passat), Sagitar (European Jetta), Audi A4, and A6L. The luxurious extended wheelbase A6L is produced exclusively by FAW-Volkswagen. Production capacity had reached an annual output level of 330,000 vehicles, 300,000 engines, and 180,000 transmissions.
On August 29, 2002, FAW Group Corporation and Toyota Motor Corporation signed a significant agreement in Beijing at the Great Hall of the People, to establish a strategic and long-term cooperative relationship for joint cooperation. Thereafter, the two parties commenced a wide scope of joint activities including wide-scale production of Toyota products in China and related transfers of technology.
FAW Mazda Motor Sales Co. Ltd. (FMSC) is a joint venture company established on March 1, 2005 by FAW Group, FAW Car Co. Ltd. (FCC), and Mazda Motor Corporation. The registered capital of the new joint venture is US $13.7 million, with FAW Group holding a 5% stake, FAW Car with 70%, and Mazda Motor Corporation holding 25%. As the first network of Mazda dealers in China, the company will not only be responsible for Mazda6 sales within the Chinese market, but will have sole distribution rights to all future Mazda-branded vehicles to be produced and launched in China. FMSC will also be responsible for spare parts and accessories distribution, and special factory-supplied tools. The company's mid-term goal is to produce and sell over 300,000 units in the Chinese market by 2010.