China's state-owned automakers FAW Group and GAC Group have joined forces with Toyota in a sweeping restructuring of their joint ventures, according to a statement released by Sina Auto on October 8, 2026. The three parties signed a new strategic cooperation framework agreement in Guangzhou, marking a significant consolidation in China's automotive landscape.
Under the deal, GAC Group plans to acquire the 50% stake in FAW Toyota currently held by FAW Group, through a share issuance. After the transaction, FAW Toyota will continue to operate as an independent entity, while FAW Group will become a major strategic shareholder in GAC Group. The move effectively merges the operational responsibilities of FAW Toyota and GAC Toyota, with the two joint ventures jointly handling research and development, procurement, production, and sales.
Rationale Behind the Restructuring
The agreement follows a separate strategic framework pact signed between FAW and GAC Industrial, aimed at deepening cooperation through asset and capital linkages, with technological innovation as a driver. The new tripartite framework is designed to promote the healthy and sustainable development of Toyota's joint venture business in China, according to the statement.
Executives from all three companies attended the signing ceremony, including FAW Group General Manager Liu Yigong, Toyota President Kenta Kon, and GAC Group Chairman Feng Xingya. The agreement was signed by FAW Group Assistant General Manager Liu Changqing, Toyota's China Chief Representative Ueda Tatsuro, and GAC Group General Manager Xia Xianqing.
Focus on Electrification and Intelligence
Under the new framework, the three parties will jointly support FAW Toyota and GAC Toyota in enhancing their competitiveness, leveraging their respective strengths to accelerate the electrification and intelligent transformation of both joint ventures. This aligns with the broader trend in China's auto industry, where traditional joint ventures are increasingly restructuring to adapt to the rapid shift toward new energy vehicles.
According to Sina Auto, the cooperation is a key component of the deepening partnership between FAW and GAC, and is expected to further consolidate the long-term relationship among FAW, Toyota, and GAC. The transaction is subject to regulatory approvals and other customary conditions.
