Gasgoo Munich- China First Automobile Group Corporation Limited (FAW Group), Toyota Motor Corp., and Guangzhou Automobile Group Co., Ltd. (GAC Group) signed a new strategic cooperation framework agreement in Guangzhou on October 8, marking a new stage in their joint venture partnership.
Image Source: FAW Group
Under the agreement, GAC plans to acquire the 50% stake in FAW Toyota Motor Co., Ltd. held by FAW through a share issuance. Upon completion, FAW Toyota will continue to operate as an independent entity, while FAW will become a strategic shareholder in GAC. Moving forward, FAW Toyota and GAC Toyota are set to coordinate across R&D, procurement, production, and sales. This transaction is a significant step in deepening cooperation between FAW and GAC, further strengthening the foundation for their long-term tripartite partnership.
Previously, FAW and GAC Industry Group signed a strategic cooperation framework agreement, planning to utilize asset and capital links and technological innovation to expand collaboration and drive efficient cross-regional resource synergy. Against this backdrop, the three parties decided to establish a new strategic cooperation framework.
Historically, FAW and Toyota established a comprehensive strategic partnership in 2002, while GAC and Toyota formed their joint venture in 2004. Over the years, the three parties have expanded operations in R&D, production, sales, and service through FAW Toyota and GAC Toyota. To date, the two joint ventures have accumulated more than 23.56 million customers in China.
Under the new framework, the three parties aim to promote mutual growth and strengthen competitiveness between FAW Toyota and GAC Toyota, leveraging their respective strengths to accelerate the electrification and intelligent transformation of both joint ventures. The group stated it will uphold the philosophy of "being the best company in the region" to deliver more competitive products and high-quality services to consumers.
The three parties also committed to following principles of "market orientation, legal compliance, equality, mutual benefit, and win-win cooperation." They plan to complete necessary procedures and steadily implement the initiatives, aiming to initiate a new phase in joint venture development and contribute to the high-quality development of China's automotive industry.
