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FAW Toyota (Changchun) Engine Co., Ltd., a joint venture between China FAW Group Corporation and Toyota Motor Corporation, held an engine off-line ceremony in Changchun on the 17th.
The engine produced by the cooperation project uses Toyota-specific VVT (Variable Intake and Exhaust Phase Adjustment) technology on the basis of 24-valve and dual overhead camshafts to provide engines with high power, low fuel consumption, low emissions, and low noise. The advantage is an engine that represents today's advanced level.
FAW-Toyota (Changchun) Engine Co., Ltd. was established on March 25 this year. It will start production of the V6 3.0-liter gasoline engine that represents Toyota's most advanced technology from December 15th. This will become Toyota's first V6 engine factory in China. This project is the first cooperation project between FAW and Toyota in Changchun, with an annual production capacity of 130,000 units. In 2005, it plans to produce about 40,000 units and it will be used on the Crown and other models produced by Tianjin FAW Toyota Motor Co., Ltd. The number of years of cooperation is 30 years. The total investment of the project is 1.5 billion yuan, and the proportion of the two parties' investment is 50% each. Its commissioning has injected new vitality into the revitalization of the northeast old industrial base.
Since the beginning of this year, the localization of key auto parts has been accelerating. In addition to FAW Toyota’s engine joint venture project in Changchun, VW has also recently signed two new engine joint venture contracts with two partners in China: Volkswagen FAW Engine Co., Ltd., a joint venture with FAW Group, is located in Dalian. It will be put into production in 2006. It will mainly produce low-emission engines for mid-size cars. The annual production capacity will gradually reach the level of 300,000 engines. The Shanghai Volkswagen Powertrain Co., Ltd., located in Shanghai's Zhangtang, will produce major supplies from the end of 2005. The new generation of engines for small cars will also gradually build an annual production capacity of 300,000 units.
Industry insiders believe that the main reason for this year's localization of key components of automobiles is on the “fast track†is that multinational auto giants are trying their best to meet the supporting needs of their joint ventures in expanding production in China, and are trying to reduce the localization rate further. Production costs enhance the overall competitiveness in the Chinese automotive market.