Business · Companies · 3 days ago
Toyota, China FAW and GAC agree to deepen cooperation on electric vehicles
Toyota has signed an alliance framework agreement with Chinese state-owned automakers China FAW and Guangzhou Automobile Group, known as GAC.
The companies aim to speed up the development of electric and intelligent vehicles.
They already cooperate through two joint ventures, FAW Toyota Motor and GAC Toyota Motor.
Toyota's sales in China have been weak as local electric vehicle makers have increased competition.
Under the agreement, GAC will acquire FAW's 50 percent stake in FAW Toyota through a stock issuance, making FAW a key strategic shareholder in GAC.
In a later phase, the two joint ventures are to work together on research and development, purchasing, production and sales.
The companies say the arrangement will improve their competitiveness and strengthen their long-term cooperation.
Toyota signed a framework agreement with China FAW and Guangzhou Automobile Group to accelerate the development of electrified and intelligent vehicles.
The companies plan to strengthen cooperation through their FAW Toyota and GAC Toyota joint ventures.
GAC will acquire FAW’s 50 percent stake in FAW Toyota through a stock issuance, making FAW a key strategic shareholder in GAC.
In a later phase, the joint ventures are expected to work together on research and development, procurement, production and sales.
Toyota’s sales in China have remained sluggish amid rising competition from local electric vehicle makers.
- Who
- Toyota Motor Corp., China FAW Corp. and Guangzhou Automobile Group (GAC).
- What
- They signed a strategic alliance framework agreement to accelerate electrification and intelligent vehicle development.
- When
- Thursday. The articles do not state the calendar date of the signing.
- Where
- Not stated.
- Why
- To improve competitiveness through cooperation between the companies’ joint ventures amid stronger competition from local electric vehicle makers in China.
This story does not have two clearly opposing sides.
Under the new alliance framework, FAW, Toyota, and GAC will use their respective strengths to support improvements in competitiveness through collaboration between the joint ventures
significant step
Toyota said it had signed a strategic alliance framework agreement with FAW and GAC.
FAW Toyota and GAC Toyota are expected to form an alliance covering research and development, procurement, production and sales.
- Companies
- Toyota Motor Corp., China FAW Corp. and Guangzhou Automobile Group
- FAW Toyota stake
- GAC will acquire FAW’s 50 percent stake through a stock issuance
- Joint ventures
- FAW Toyota Motor Co. and GAC Toyota Motor Co.
- Planned functions
- Research and development, procurement, production and sales
Sources
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