GAC to take over FAW's half of FAW Toyota under a three-way framework deal

GAC to take over FAW's half of FAW Toyota under a three-way framework deal

8 October 2026: FAW, Toyota and GAC signed a strategic alliance framework agreement in Guangzhou under which GAC will acquire FAW's 50% stake in FAW Toyota Motor Co. through a stock issuance. The deal changes who owns one of Toyota's two main joint ventures in China and puts FAW inside GAC's shareholder register.

Not yet independently verified. The release gives no closing date, share-issue size or list of required approvals, and no financial figures. We will update this when it can be confirmed, and remove this note.

Who signed

Three executives signed for the carmakers: Liu Yigong, President of FAW, Kenta Kon, President of Toyota, and Feng Xingya, Chairman of GAC. The parent groups, FAW Group and Guangzhou Automobile Industry Group, signed a separate cooperation framework alongside it.

How the stake moves

GAC will pay for FAW's 50% share of FAW Toyota with newly issued GAC stock. After completion FAW Toyota remains an independent entity, and FAW becomes a key strategic shareholder of GAC. Toyota keeps its place as the other partner.

The release states no closing date, no size for the share issue and no approvals, and it carries no financial figures.

A later phase: two joint ventures acting together

In a later phase, FAW Toyota and GAC Toyota will form an alliance across research and development, procurement, production and sales. The stated aim is to speed up electrification and intelligence development at both joint ventures.

Both ventures have long histories. The FAW and Toyota strategic partnership agreement dates from 2002, and the GAC Toyota joint venture was established in 2004. The release says products of the two ventures have been chosen by more than 23 million customers in China.

What the groups agreed between themselves

FAW's parent, Guangzhou Automobile Industry Group, signed a new strategic cooperation framework with GAC, its parent-level counterpart. The two groups will build on an asset and capital alliance and deepen cooperation through technological innovation. They also aim to align industrial resources across regions, strengthen their business foundations and raise corporate value.

Goals the companies set

The release lists three aims: to improve competitiveness through collaboration between the two ventures, to accelerate electrification and intelligence development at both, and to offer more competitive products and higher-quality services. The companies say they want to be "best in town", and that they will proceed based on market and customer needs, strict compliance and mutual trust. The stated purpose is to grow the joint ventures and contribute to the sustainable development of China's automotive industry.

The three companies have already collaborated on research and development, production, sales and service.

Where the companies are based

The two ventures are FAW Toyota Motor Co. and GAC Toyota Motor Co. Toyota Motor Corporation, founded in 1937 and based in Toyota City, Japan, describes itself as transforming into a mobility company focused on connected, automated, shared and electrified technologies. GAC Group is headquartered in Guangzhou, and China FAW in Changchun.

Company profile on TrustList: GAC Group

Sources

• Toyota Global Newsroom: FAW, Toyota and GAC sign strategic alliance framework agreement, 8 October 2026