Guangzhou, China, October 8, 2026―China FAW Corporation Limited (FAW), Toyota Motor Corporation (Toyota), and Guangzhou Automobile Group Co., Ltd. (GAC) held a signing ceremony here today for a framework agreement on a new strategic alliance. FAW President Liu Yigong, Toyota President Kenta Kon, and GAC Chairman Feng Xingya represented their respective companies at the ceremony.
FAW and Toyota entered into a comprehensive strategic partnership agreement in 2002, and GAC and Toyota established a joint venture in 2004. Since then, FAW, Toyota , and GAC have collaborated in a wide range of fields including research and development, production, sales, and service through FAW Toyota Motor Co., Ltd. (FAW Toyota) and GAC Toyota Motor Co., Ltd. (GAC Toyota). The two joint ventures' products have been chosen by more than 23 million customers in the Chinese market to date.
Based on the new strategic cooperation framework agreement signed by FAW and GAC parent Guangzhou Automobile Industry Group Co., Ltd., the two companies will build on an asset and capital alliance to gradually deepen and expand their areas of cooperation through technological innovation. The two companies will also aim to achieve an efficient alliance of industrial resources across regions to strengthen their business foundations and enhance corporate value. Against this backdrop, FAW, Toyota, and GAC have resolved to establish a new framework for a three-company strategic alliance to promote the sustainable and sound development of the joint ventures.
GAC will acquire the 50% stake in FAW Toyota held by FAW through a stock issuance. Upon completion of this transaction, FAW Toyota will continue to operate as an independent entity, and FAW will become a key strategic shareholder of GAC. In the following phase, FAW Toyota and GAC Toyota will form an alliance to handle functions such as research and development, procurement, production, and sales within the joint ventures. This alliance represents a significant step toward further deepening the cooperative relationship between FAW and GAC, and it will further strengthen the long-term cooperative relationship among FAW, Toyota, and GAC.
Under the new alliance framework, FAW, Toyota, and GAC will use their respective strengths to support improvements in competitiveness through collaboration between FAW Toyota and GAC Toyota and accelerate the development of electrification and intelligence at both joint ventures. Furthermore, all the companies will strive to be the "best in town" and provide even more competitive products and high-quality services to bring smiles to the faces of customers.
Going forward, FAW, Toyota, and GAC will steadily advance the necessary procedures and cooperation based on market and customer needs, strict compliance, and mutual trust. The three companies will also deepen their collaboration to further grow their joint venture business while contributing to the sustainable development of China's automotive industry.
Toyota Motor Corporation works to develop and manufacture innovative, safe and high-quality products and services that create happiness by providing mobility for all. We believe that true achievement comes from supporting our customers, partners, employees, and the communities in which we operate. Since our founding over 80 years ago in 1937, we have applied our Guiding Principles in pursuit of a safer, greener and more inclusive society. Today, as we transform into a mobility company developing connected, automated, shared and electrified technologies, we also remain true to our Guiding Principles and many of the United Nations' Sustainable Development Goals to help realize an ever-better world, where everyone is free to move.
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