Japan’s largest car maker Toyota is in negotiations with First Automobile Works (FAW) to build a new factory to produce a luxury car for the Chinese market, Reuters reported. The new car would replace FAW’s Hongqi (Red Flag) model currently produced at its works in Changchun, Jilin province.
The new factory would be in Tianjin, where Toyota already has a joint venture with Tianjin Automotive that will begin making compact cars in October this year. Tianjin Automotive was taken over by FAW in June.