Beijing, Oct. 9 (Jiji Press)–Toyota Motor Corp. has announced the signing of a new three-way strategic alliance with two state-owned Chinese auto giants, China FAW Corp. and Guangzhou Automobile Group Co., each of which has a partnership with the leading Japanese automaker for the Chinese market. Toyota, which currently has a joint venture called FAW Toyota Motor Co. with China FAW and another, GAC Toyota Motor Co., with Guangzhou Automobile, will reshape its ties with the Chinese firms through the new alliance in an effort to further promote electrification and boost smart features of vehicles. Under the new partnership, Guangzhou Automobile will buy China FAW’s 50 pct equity stake in FAW Toyota through a stock issuance, according to the announcement Thursday. Upon completion of the share transfer, China FAW will become “a key strategic shareholder” of Guangzhou Automobile, according to Toyota and the two major Chinese automakers. Leveraging the new framework, the three automakers plan to strengthen their collaboration in research and development, procurement, production and sales. Toyota’s joint venture partnerships with the Chinese auto giants started more than 20 years ago, with the predecessor of FAW Toyota established in 2000 and GAC Toyota launched in 2004. The signing ceremony for the new three-way strategic alliance took place in the southern China city of Guangzhou on Thursday, with participants including Toyota President Kenta Kon. Japanese automakers face an uphill battle in the Chinese market amid excessive competition reflecting a rise of Chinese electric vehicle makers. Toyota plans to start producing extended-range EVs in China in 2027. The company also aims to produce next-generation EVs from its Lexus luxury brand in Shanghai. END [Copyright The Jiji Press, Ltd.]
