Toyota, FAW and GAC sign strategic alliance framework for China joint ventures
TM•Toyota signed a framework agreement with China FAW Group and GAC to form a three-way strategic alliance in China. GAC will acquire FAW’s 50% stake in FAW Toyota through a stock issuance, while FAW remains a strategic shareholder in GAC.
1. Alliance framework
The alliance will align research and development, procurement, production and sales at FAW Toyota and GAC Toyota, which will remain separate joint ventures. The companies said the alliance targets faster electrification and intelligent vehicle development, while coordination of FAW and GAC’s industrial resources is expected to strengthen the joint ventures’ business foundations and improve their corporate value.
