China's largest car-maker, First Automotive Works (FAW), plans to team up with Japanese giant Toyota Motor to introduce a new luxury 'Red Flag' car of the sort driven by senior Chinese leaders.
The new-generation China-made sleek black limousines, made famous by generations of state leaders and an object of national pride, should start to role off the production line within four years and be priced at about 600,000 yuan (HK$562,380), said Pu Hongsheng, head of marketing at FAW's car sales arm.
Late last month, Toyota - Japan's largest car-maker and No 3 in the world - signed an agreement with FAW in Beijing to jointly produce 300,000 to 400,000 vehicles as wide ranging as luxury sedans, compact cars and sports-utility vehicles annually for the mainland market by 2010.
Although few details have been revealed about the deal, Toyota appears poised to join a growing line of foreign car-makers who will help re-invigorate the Red Flag brand, once seen as endangered by the onslaught of imported cars and stiff competition from joint-venture car-makers.
FAW produces Red Flag limousines with technology from United States-based Ford Motor and Germany's Audi, among others, in Changchun.
The existing line of Red Flag cars fetch from 168,000 yuan to 1.1 million yuan each.