Defend Honor 扛 Car Flag FAW Secret R & D New Red Flag Flagship

The iconic Red Flag flagship, once a star of car exhibitions, is no longer a top seller in the market. Known as the "national car" for decades, the Red Flag luxury sedan now faces significant challenges due to new fuel consumption regulations. According to the recently released standards, domestic luxury cars like the Red Flag will be banned from sale starting next July because their fuel efficiency fails to meet the updated requirements. Despite this, the Red Flag brand, a symbol of Chinese automotive pride, cannot simply disappear from the market. FAW Group has reportedly been working on a major project team dedicated to the Red Flag for several months. The new flagship model is expected to launch in 2006, with efforts being made to address the fuel consumption issue. A sales company representative admitted that the current flagship models do not meet the new standards. On October 28, AQSIQ and the National Standards Supervision Commission issued a national standard limiting fuel consumption for passenger vehicles. This regulation applies to nearly 10% of cars sold in China, mainly affecting imported luxury brands. However, domestic models such as the Red Flag flagship are also impacted. Starting next July, the maximum allowable fuel consumption per 100 km will be capped at 16.4 liters. The original Red Flag flagship, introduced in 2000, consumes over 20 liters per 100 km—far exceeding the limit. The Red Flag flagship has long been considered the pinnacle of Chinese luxury, with prices reaching over 1.1 million yuan for the extended version. It's a regular attraction at auto shows and represents national pride. However, under the new rules, it will no longer be available for sale after July next year. A mid-level FAW employee mentioned that sales data for the Red Flag flagship has been weak for some time, with production largely based on orders. Although its market performance is modest, the Red Flag brand carries deep historical significance. Since 1958, when FAW built the first domestically produced Red Flag car, it has held the title of "national car." In the 1960s, it became the official vehicle for state guests and high-profile visits. Even today, the Red Flag name is synonymous with Chinese automobiles. In recent years, FAW partnered with Ford to develop a Red Flag flagship based on the Lincoln platform. Despite these efforts, sales have remained low, with fewer than 100 units sold last year. The company’s sales target for the Red Flag brand this year is 50,000 units, but the flagship’s contribution remains minimal. FAW Group is investing 1.8 billion yuan to build a new production platform specifically for the Red Flag. A secret R&D team was formed six months ago, focusing on the development of the new flagship. Although the project is still under wraps, the new model is expected to be smaller and more efficient. It will likely feature a 4.0-liter engine and a length of around 5.7 meters, compared to the current 6.83-meter-long model. The new Red Flag flagship will not be mass-produced but will primarily serve business and VIP customers. FAW plans to launch a mid-level Red Flag model by the end of next year, with the D-class flagship following in 2006. Despite the challenges, the Red Flag brand remains a symbol of national pride and a responsibility for FAW to preserve.

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