On the afternoon of October 8, FAW Group, Toyota Motor Corporation, and GAC Group held a signing ceremony in Guangzhou for a new strategic cooperation framework agreement.
FAW Group General Manager Liu Yigong, Toyota Motor Corporation President Kenta Kon, and GAC GROUP (02238) Chairman Feng Xingya attended the event and witnessed the signing. FAW Group General Manager Assistant Liu Changqing, Toyota Motor Corporation China Division Chief Tatsuro Ueda, and GAC Group General Manager He Xianqing signed the strategic cooperation framework agreement.
Since FAW Group and Toyota Motor Corporation reached a comprehensive strategic cooperation agreement in 2002, and GAC GROUP (Guangzhou Automobile Group Co.,Ltd., 601238) and Toyota Motor Corporation established a joint venture in 2004, FAW Group, Toyota Motor Corporation, and GAC Group have carried out cooperation in research and development, production, sales, and services through two entities—FAW Toyota and GAC Toyota. Currently, the two joint ventures have cumulatively served over 23.56 million users in the Chinese market.
Recently, FAW Group and GAC Industry have signed a strategic cooperation framework agreement. Going forward, the two parties will rely on asset and capital linkages, with technological innovation as the driving force, to gradually deepen and expand the boundaries of cooperation, promote efficient cross-regional coordination of industrial resources, and work together to strengthen their operational foundations and enhance corporate value.
Against this backdrop, FAW Group, Toyota Motor Corporation, and GAC Group, through friendly consultations, have decided to establish a new three-party strategic cooperation framework to promote the sustained and healthy development of their joint venture operations. Through joint consultation among the three parties, GAC GROUP (02238) plans to acquire a 50% equity stake in FAW Toyota held by FAW Group through the issuance of shares. After the transaction is completed, FAW Toyota will continue to exist as an independent operating entity, and FAW Group will become an important strategic shareholder of GAC GROUP (Guangzhou Automobile Group Co.,Ltd., 601238).
In the next phase, FAW Toyota and GAC Toyota will jointly undertake functions including research and development, procurement, production, and sales for the joint ventures. This cooperation is not only an important component of the deepened collaboration between FAW Group and GAC GROUP (02238), but will also further consolidate the long-term cooperative relationship among FAW Group, Toyota Motor Corporation, and GAC GROUP (Guangzhou Automobile Group Co.,Ltd., 601238).
Under the new cooperation framework, FAW Group, Toyota Motor Corporation, and GAC GROUP (02238) will jointly support FAW Toyota and GAC Toyota in promoting mutual progress and continuously enhancing competitiveness. The three parties will leverage their respective advantages to empower the two joint ventures in accelerating electrification and intelligent development. Adhering to the philosophy of "being the best local enterprise," they aim to deliver more competitive products and higher-quality services for the smiles of consumers.
In the future, the three parties will abide by the principles of "market orientation, legal compliance, equality and mutual benefit, and win-win cooperation," complete relevant procedures in accordance with regulations, solidly advance various cooperations, and work together to open a new chapter in the development of their joint venture operations, making positive contributions to the high-quality development of China's automotive industry.