FAW Group and GAC Industry Sign Strategic Cooperation Framework Agreement

Chinese automakers FAW Group (China FAW) and GAC Industry (Guangzhou Automobile Industry Group) announced today, September 29, the signing of a strategic cooperation framework agreement.

The agreement responds to national calls for high-quality development in the automotive industry during a period of significant structural adjustment. Both companies stated the pact is based on market trends and their respective development needs, marking a new stage of strategic synergy.

FAW Group and GAC Industry are recognized as key players in China's automotive sector, with complementary strengths in brand building, vehicle manufacturing, market presence, international operations, and technological innovation. The companies intend to leverage combined capital and resources and drive scientific and technological advancements.

The collaboration aims to deepen and expand cooperation boundaries, foster efficient cross-regional coordination of industrial resources, and improve operational performance. Both parties commit to principles of market orientation, compliance, mutual benefit, and win-win outcomes to establish a new model for strategic synergy between central and local state-owned enterprises.

On the previous day, GAC Group announced its intention to acquire a 50% stake in FAW Toyota Motor Co., Ltd. through a share issuance. Trading in the company's stock is set to resume on September 29.