Is FAW sensing an opportunity to add scale and value and would Beijing approve? It has been reported that China's First Automotive Works (FAW) is in talks to acquire Brilliance China Automotive Holdings (Brilliance) for $7.2bn. The deal is raised as a prospect with Brilliance's major shareholder, Huachen Automotive Group, on the brink of bankruptcy. Brilliance itself, outside of its joint ventures with BMW, has struggled of late. Group production has declined from a high of 568,0000 in 2013 to 234,000 in 2020. The 2020 production level was a fall of 9.7%, comparing unfavourably with a total industry decline of 3.8%. Recent performance, combined with a set-up capable of producing some 650,000 light vehicles a year, is unsustainable. Brilliance's current travails are far removed from its position a decade ago when it seemed set to emerge from the pack and become one of China's leading domestic OEMs. A succession of models have failed to capture the imagination, while its attempt to move upmarket with the SWM brand – bought in 2014 and with a design centre in Italy – has not met expectation.