On October 8, FAW Group, Toyota Motor Corporation, and GAC Group held a signing ceremony in Guangzhou to establish a new strategic cooperation framework agreement.
Currently, FAW and GAC have already signed a strategic framework agreement. Moving forward, both parties intend to leverage asset and capital integration, driven by technological innovation, to gradually deepen and expand the boundaries of their cooperation. This initiative aims to promote efficient cross-regional coordination of industrial resources and jointly achieve the strengthening of their operational foundations and corporate value. Against this backdrop, FAW, Toyota, and GAC have decided to establish a new tripartite strategic framework to promote the sustainable and healthy development of their joint venture operations.
Under the agreement, GAC Group plans to acquire a 50% stake in FAW Toyota held by FAW Group through the issuance of shares. Following the completion of the transaction, FAW Toyota will continue to operate as an independent entity, and FAW Group will become a significant strategic shareholder of GAC Group. In the next phase, FAW Toyota and GAC Toyota will jointly shoulder the responsibilities of R&D, procurement, production, and sales for their respective joint ventures.
This collaboration represents a significant step in deepening the partnership between FAW and GAC, while further consolidating the long-term relationship between FAW, Toyota, and GAC. Under the new framework, the three parties will jointly support FAW Toyota and GAC Toyota in fostering mutual progress and continuously enhancing their competitiveness.
The three parties will leverage their respective strengths to empower the acceleration of electrification and intelligent development for both joint ventures. Adhering to the philosophy of “being the best local enterprise” and aiming for customer satisfaction, they intend to provide more competitive products and superior services. In the future, the parties will uphold the principles of “market-oriented, legal compliance, equality, mutual benefit, and win-win cooperation” to advance the partnership and contribute to the high-quality development of China’s automotive industry.
Since FAW and Toyota reached a comprehensive strategic cooperation agreement in 2002, and GAC and Toyota established their joint venture in 2004, the three companies have collaborated across R&D, production, sales, and service. To date, the two joint ventures have accumulated over 23.56 million users in the Chinese market.