FAW Sihuan to Boost Sales 11% in 2008 on China VW, Toyota Cars
By Tian Ying
June 6 (Bloomberg) -- Changchun FAW Sihuan Automobile Co., the parts-making unit of China's second-largest automaker, aims to boost sales 11 percent this year, helped by its parent's rising production of Toyota Motor Corp. and Volkswagen AG cars.
Sales may climb to 3.68 billion yuan ($531 million) from 3.32 billion yuan a year earlier, FAW Sihuan said in a Shanghai stock exchange statement today. The company will also boost cost controls and cut stockpiles of raw materials and finished parts to boost profit, it said.
China FAW Group Corp., the company's parent, and other local automakers have raised output as the country's surging economic growth spurs demand. Chinese automakers built 3.5 million vehicles in the first four months of the year, 16 percent more than a year earlier.
FAW Sihuan was little changed at 9.97 yuan at 9:39 a.m. in Shanghai trading. The company is an affiliate of Tianjin FAW Xiali Automobile Co. and FAW Car Co.
FAW Group and its units build cars including Toyota Corollas and Volkswagen Jettas through ventures with overseas automakers, as well as own-brand cars including Xiali compacts and Besturn sedans.
To contact the reporter on this story: Tian Ying in Beijing on ytian@bloomberg.net
