Toyota, China's FAW Agree to Joint-Management Tie

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Last updated at: (Beijing Time) Friday, August 30, 2002

Toyota, China's FAW Agree to Joint-Management Tie

Toyota Motor Corp. and China's First Automotive Works have agreed to establish joint operations in China, the two companies said Thursday.

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Toyota Motor Corp. and China's First Automotive Works have agreed to establish joint operations in China, the two companies said Thursday.

The auto makers aim to sell 300,000 to 400,000 vehicles in 2010 via their joint operations.

To achieve this goal, they plan to jointly produce medium-grade and luxury passenger cars, sport-utility vehicles and mini cars.

Toyota has had close relations with FAW over the past 30 years.

The joint operation is expected to help Toyota, the world's third-largest car maker, expand its share of the fast-growing Chinese auto market.

Last week, FAW agreed to cooperate in the auto business with Sichuan Luxing Chechang, which runs a 50:50 joint venture, Sichuan Toyota Motor Co., with the Toyota group.

FAW's agreement with Toyota is expected to further strengthen relations among these companies.

FAW also formed a capital tie-up with Tianjin Automotive Industrial (Group) Co. in June.

Meanwhile, a Toyota spokesman said Thursday that Toyota will begin making Toyota-branded cars in China starting in the middle of 2003.

Speaking at a ceremony to announce the set up of joint operations between Toyota and Chinese state-owned auto maker FAW, Masashi Honda said Toyota would transfer to FAW the technology to make the vehicles.

The spokesman said Toyota and FAW would make "mini cars" at FAW's facility in Tianjin starting in mid-2003, with annual production of about 100,000 vehicles.

Production on Toyota-branded luxury SUVs will also start in mid-2003, Mr. Honda said. They will be made at a facility in Changchun that will produce 10, 000 to 20,000 vehicles a year, he said.

Production of medium- and large-sized luxury sedans will start in 2005. Toyota hopes to produce 50,000 a year of those vehicles at the facility in Tianjin.

FAW Group Corp., also known as First Automotive Works, is China's largest vehicle maker. It is also a joint venture partner with Volkswagen AG and is the parent of FAW Car Co.

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