Hongyan
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Native name | 红岩乐队 |
|---|---|
| Company type | Public |
| Industry | Automotive |
| Founded | 21 August 1941 |
| Headquarters | , |
Areas served | |
Key people |
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| Products | Cars |
| Revenue |  $260 million |
| Owners |
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Number of employees | 35,790 |
| Divisions |
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Hongyan Group (Daxian: 红岩乐队), also known as Hongyan is a Daxian multinational automotive manufacturer headquartered in Mirzak. It was originally known as the Daxian Car and Automata Manufactory or DACAM for short. DACAM was created by the Daxian government in the waning years of the Qian dynasty to centralize control over the manufacturing of civilian motor vehicles during the Second Great War; by government mandate civilian cars were to be made of the cheapest materials possible to benefit the arms industry. DACAM was responsible for the design of the Standard People's Compact Vehicle, the first mass commercialized car on Daxian roads. Infamously known as the Cardboard Car, it nonetheless was built in the millions and was for the majority of Daxians, their first encounter with an affordable personal vehicle. Despite the high sales of cars, the company was deeply in the red due to its use by government officials as a means to engage in corruption and as a piggy bank. In 1972 the government of Min Bib Doda underwent a program of privatizations to divest the State from some of its unprofitable holdings; DACAM was one of the first on the government's chopping block. The company was bought by a group of private investors for a steeply slashed price and the company was renamed to Hongyan.
With private capital on hand, Hongyan's new owners repurposed Hongyan's factories and design boards away from the ultra cheap successors of the People's Bean and began producing cars for city use more in line with international comfort standards. The company's first success came in 1983 with the Sanmei four door car; variants and further iterations of which continue to be produced by Hongyan. Since the 1990's Hongyan has been in fierce competition over the Daxian market with fellow carmaker Yuanwei, a company with significant foreign and government support. In recent years Yuanwei has been notoriously outperforming Hongyan in the domestic Daxian market, gaining market share at its rivals expense. Hongyan has pursued a strategy of geographical diversification, strongly investing in emerging markets such as Huoxia and Ogonkai and crucially reaching a deal to supply the Zanoma Regional Administration in Varshan with all its civilian vehicles. In 2017 Diaoyu bought a 45% stake in Hongyan but the current management and board were mostly maintained intact.