China FAW Group Corporation (FAW) signed a strategic cooperation agreement with China Railway (CR) in Beijing on Jul 20, aiming at further expand cooperation in fields of commercial vehicle logistics, special-purpose railway building, automotive parts and components logistics, advance in the Belt and Road Initiative, and seeking new model of financial cooperation.
CR is a solely state-owned enterprise under the management of the central government, focused on railway passenger and freight transport services and carries out diversified business operation.
The cooperation between FAW and CR can trace back to the foundation of FAW in 1950s. CR has offered an comprehensive support and guarantee for the transportation of FAW’s raw materials, parts and components and commercial vehicles.
Leaders from both sides said at the signing ceremony that the signing of the agreement is critical for further development of FAW and CR. CR will provide automotive logistics services for FAW in a more-targeted way through supply-side structural reform. FAW will continue to improve the quantity and scale of its railway transportation. The cooperation between the two SOEs will certainly promote the transition of transportation model and optimize industrial chain, so as to reduce logistics costs, advance railway logistic service level, and achieve win-win outcomes.
FAW Group is a leading global manufacturer of quality passenger cars, trucks, and buses. Established in 1953, the company is China’s oldest and largest automotive group. Annual sales exceed three million units.