Toyota Motor entered into a strategic partnership with 2 major Chinese state-owned automakers and will reorganize its ownership structure. Under a new trilateral framework, FAW Toyota and GAC Toyota will be placed under GAC, strengthening cooperation in research and development, parts procurement, production and sales.
Toyota Motor entered into a new strategic partnership agreement with 2 major state-owned automakers operating joint ventures in China to reorganize its ownership structure. The agreement will reorganize the frameworks of FAW Toyota and GAC Toyota, which had previously been operated independently, accelerating electrification and intelligent-vehicle development.
The key element of the reorganization is GAC’s acquisition of the 50% stake in FAW Toyota held by FAW Group. Both joint-venture companies will come under GAC, deepening cooperation in research and development, procurement, production and sales.
The signing ceremony for the new agreement was held in Guangzhou, attended by Toyota President Kondo Kenta (近健太). The companies covered are FAW Toyota and GAC Toyota, with the aim of strengthening competitiveness in the Chinese market.
The framework revises Toyota’s joint-venture business in China, which has continued for approximately a quarter of a century, with the aim of improving cost competitiveness. Official announcements are awaited for details of future developments and the schedule.