On behalf of China FAW Group Corporation, Tianjin FAW Xiali Automobile Co., Ltd (Stock Code: sz000927) and China FAW Group I/E Corporation signed a memorandum of understanding for joint venture and cooperation with Grupo Elektra, S.A. de C.V., a Mexico-based listed company held by Salinas Group on the 23rd of Nov 2007. According to the MOU, China FAW Group Corporation will develop a long-term strategic cooperation with Grupo Elektra, S.A. de C.V. through Tianjin FAW Xiali Automobile Co., Ltd and China FAW Group I/E Corporation.

The both parties will invest around 150 million U.S. dollars (min. 100 million U.S. dollars) at half to half to establish a new joint venture in Mexico to manufacture economic car, with annual capacity expected to be 100,000 units and construction period to be 3 years. The new joint venture is estimated to put into operation in 2010.