GUANGZHOU: Toyota Motor Corp has signed a new strategic alliance framework agreement with Chinese automakers China FAW Corp Ltd (FAW) and Guangzhou Automobile Group Co Ltd (GAC).
Based on the new strategic cooperation framework agreement, FAW and GAC will build on an asset and capital alliance to gradually deepen and expand their areas of cooperation through technological innovation.
Also, FAW, Toyota, and GAC have resolved to establish a new framework for a three-company strategic alliance to promote the sustainable and sound development of the FAW Toyota Motor Co Ltd (FAW Toyota) and GAC Toyota Motor Co Ltd (GAC Toyota) joint ventures.
GAC will acquire the 50% stake in FAW Toyota held by FAW through a stock issuance.
Upon completion of this transaction, FAW Toyota will continue to operate as an independent entity, and FAW will become a key strategic shareholder of GAC.
In the following phase, FAW Toyota and GAC Toyota will form an alliance to handle functions such as research and development, procurement, production, and sales within the joint ventures.
Under the new alliance framework, FAW, Toyota, and GAC will use their respective strengths to support improvements in competitiveness through collaboration between FAW Toyota and GAC Toyota and accelerate the development of electrification and intelligence at both joint ventures.
Furthermore, FAW, Toyota, and GAC will strive to be the "best in town" and provide even more competitive products and high-quality services.
FAW and Toyota entered into a strategic partnership agreement in 2002, and GAC and Toyota established a joint venture in 2004.
Since then, FAW, Toyota, and GAC have collaborated in a wide range of fields including research and development, production, sales, and service through FAW Toyota and GAC Toyota.
FAW Toyota and GAC Toyota joint ventures' products have been chosen by more than 23 million customers in the Chinese market to date.
