Updates from two major Chinese automakers

Chinese automotive giants GAC (Guangzhou Automobile Group Co., Ltd.) and FAW (First Automobile Works) have signed a memorandum of cooperation.

According to the memorandum, FAW could become the second-largest shareholder of GAC. Other terms of the agreement have not yet been disclosed, IT Home reports.

Both GAC and FAW have joint ventures with Toyota.

According to a statement from GAC, the company plans to acquire a certain stake in one of the joint ventures owned by FAW.

According to one forecast, the deal could lead to the merger of these joint ventures into a single company. Such a merger would allow Toyota to use its production capacity, sales network, and vehicle lineup in China more efficiently.