Guangzhou Automobile Group (GAC) will acquire FAW Group’s 50% stake in the FAW Toyota joint venture through a share issuance. After the transaction, GAC and Toyota will each hold 50% of both GAC Toyota and the former FAW Toyota venture.
The restructuring comes as domestic electric vehicle makers intensify competition and sales decline at both Toyota ventures. It aims to streamline operations, reduce duplicate investment, and improve coordination in research and development, supply chains, and marketing. FAW Group will become GAC’s second-largest shareholder, deepening ties between the two state-owned automakers.