Hongqi sedan is like a panda grew up in man-made environment
Staff Reporter | | Jun 28, 2013 03:30 PM EDT |
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As an oldest brand in China's automobile history, in the past 55 years, Hongqi sedan was born due to government procurement, but it suffered defeats repeatedly in the competitive market. Today, can it survive again with the help of government procurement?
After years of silence, Hongqi sedan appears in public view again. Maybe this is a chance for FAW Group Corporation.
On June 17th, 2013, China's Minister of Foreign Affairs Wang Yi started taking a Hongqi sedan produced by FAW as his official vehicle. This is the highest-level government official in China to take a Hongqi sedan as the official vehicle so far.
Hongqi H7 sedan also has attracted attentions from foreign media. According to Bloomberg news, an analyst in China Minzu Securities Co. said: "China's auto market is like a jungle full of ferocious beasts. The Red Flag is like a panda that grew up in a man-made environment. It won't survive unless it has the toughest type of DNA in its blood."
That's so true. In the past 55 years, the royal blood of Hongqi sedan didn't help the company at all. There were many times when the fate of Hongqi sedan was hanged by a thread.
Nowadays, the latest official vehicle procurement policy of Chinese government is inclined to state-owned automotive brand. Thus, Hongqi sedan gets an opportunity to survive.
In April, French President was ferried in a Hongqi L5 limousine during his state visit to China. The automaker sent 20 Hongqi sedans to Fiji for use at the Group of Seventy Seven summit.
The car was included by China's Commerce Ministry among items the government may donate to foreign countries, and the automaker said it's actively liaising with Chinese embassies and overseas governments to "fly the Hongqi in all corners of the world".
FAW, which will celebrate its 60th anniversary in July, plans to invest at least 10.5 billion Yuan ($1.7 billion) into developing Hongqi sedan through 2015, the company said on its website. FAW owns full intellectual-property rights over its engine, chassis, body design and electronics, according to the company.
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