FAW and TMC Tie Up on Chinese Auto Industry

Tokyo ―CHINA FAW GROUP CORPORATION (FAW) and TOYOTA MOTOR CORPORATION (TMC) announced today that they have agreed to establish a strategic and long-term cooperative relationship covering their automobile business in China. The newly planned ties―also aimed at advancing the Chinese automotive industry―will center on active joint-management in various fields.

The two companies held a signing ceremony at the People's Congress Hall in Beijing―attended by FAW President Zhu Yanfeng and TMC President Fujio Cho―to formalize their intentions to begin their collaborative efforts. About 500 people, including local and central government officials and members of the media, were present at the event.

FAW and TMC have cultivated a friendly rapport over the past 30 years through mutual visits and exchanges that started in the 1970s. Both companies view this new dimension to their relationship as helping them establish a steadfast position in the Chinese automobile market through the production of numerous models of high-quality automobiles that meet the needs of their customers. Their objective is to achieve production and sales of 300,000 to 400,000 vehicles a year by 2010.

To reach this goal, FAW and TMC agreed to move forward with preparations for production of three types of vehicles: medium/large-class luxury sedans, minivehicles and medium/large-class luxury SUVs.

Today's announcement comes after FAW's signing of a capital tie-up agreement with Tianjin Automotive Industrial (Group) Co., Ltd. on June 14 this year, which was followed by an accord reached on Aug. 22 with Sichuan Lüxing Chechang (the Chinese parent company of Sichuan Toyota Motor Co., Ltd. [SCMT], a joint venture with TMC), leading to the foundation of a cooperative relationship between FAW and TMC through SCMT.

Through their cooperative efforts, FAW and TMC plan to do their best to contribute to the further development of China's automotive industry.