FAW Toyota denies exit and big price-cut rumours, reserves right to legal action
In short
FAW Toyota Motor Sales Co. said on 5 October that online claims it may “completely exit the historical stage” and of “big Toyota price cuts” are untrue, and that it reserves the right to pursue legal action. The statement followed a strategic cooperation framework agreement signed by China FAW Group and Guangzhou Automobile Industry Group, which the company said drew wide industry and consumer attention. FAW Toyota said its lineup’s production, sales and model iteration plans are proceeding as scheduled.
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FAW Toyota Motor Sales Co. said on 5 October that online claims it may “completely exit the historical stage” and of “big Toyota price cuts” are untrue, adding that it reserves the right to pursue legal action. The statement was carried by CLS, IT Home, 36Kr, Jiemian and cnBeta. [ 1 , 2 , 3 , 4 , 5 ]
The company said the statement followed the signing of a strategic cooperation framework agreement between China FAW Group and Guangzhou Automobile Industry Group, which it said had drawn wide attention from the industry and consumers. FAW Toyota did not describe the contents of that agreement in the statement. [ 1 , 2 , 3 , 4 , 5 ]
In the statement, the company said it has been in the domestic market for 23 years and has a mature product lineup, a complete production, sales and after-sales system, and a base of 10 million users. It said production, sales and model iteration plans across its lineup are proceeding as scheduled, and that it will rely on the group cooperation’s greater resources to continue innovating and repay users’ trust. [ 1 , 2 , 4 ]
IT Home added background to the statement, reporting that GAC Group announced on 14 September an intent agreement with China FAW Co. to plan to acquire part of the equity of a vehicle joint-venture company by issuing shares and to raise matching funds, and that on 28 September GAC announced a plan to buy 50% of FAW Toyota Motor Co. Ltd by issuing shares. No other document in the source set mentions those announcements. [ 2 ]
IT Home dated the statement to 5 October. The documents do not identify the online accounts behind the claims, and none of them reports a response from FAW Group, GAC Group or Toyota to the statement. [ 1 , 2 , 3 , 4 , 5 ]
Why it matters
The statement is an unusual public denial by a major Chinese joint-venture carmaker, prompted by a cooperation framework between two state-linked auto groups that prompted market speculation about the venture’s future. The company’s response, including a legal-action warning, signals that it sees the rumours as a commercial risk to its brand and sales.
Key facts
- FAW Toyota Motor Sales Co. said claims that it may “completely exit the historical stage” and of “big Toyota price cuts” are untrue, and said it reserves the right to pursue legal action. [ 1 , 2 , 3 , 4 , 5 ]
- The company said China FAW Group and Guangzhou Automobile Industry Group had recently signed a strategic cooperation framework agreement that drew wide attention. [ 1 , 2 , 3 , 4 , 5 ]
- FAW Toyota said production, sales and model iteration plans across its lineup are proceeding as scheduled. [ 1 , 2 , 3 , 4 ]
- The company said it has been in the domestic market for 23 years and has a base of 10 million users. [ 1 , 2 , 4 ]
- IT Home reported that GAC Group announced on 28 September a plan to buy 50% of FAW Toyota Motor Co. Ltd by issuing shares. [ 2 ]
Confirmed by several sources
- FAW Toyota Motor Sales Co. said online claims that it may “completely exit the historical stage” and of “big Toyota price cuts” are untrue, and said it reserves the right to pursue legal action. [ 1 , 2 , 3 , 4 , 5 ]
- The company said China FAW Group and Guangzhou Automobile Industry Group recently signed a strategic cooperation framework agreement that drew wide attention from the industry and consumers. [ 1 , 2 , 3 , 4 , 5 ]
- FAW Toyota said production, sales and iteration plans for all its models are proceeding as scheduled and it will draw on the group cooperation’s greater resources. [ 1 , 2 , 3 , 4 ]
- FAW Toyota said it has operated in the domestic market for 23 years and has a base of 10 million users. [ 1 , 2 , 4 ]
Still unclear
- What the strategic cooperation framework agreement between FAW Group and GAC Group covers, and how it will affect FAW Toyota. No document describes the agreement’s contents beyond the fact that it was signed.
- Whether GAC Group’s plan to buy 50% of FAW Toyota Motor Co. Ltd will proceed, and what it would mean for the sales company. Only one document reports the equity plan, and the company statement does not address it.
- Which online accounts made the claims the company called untrue. The statement refers to “some online accounts” without naming them, and no document identifies them.
What local media are saying
Timeline, local time
- CLS publishes the first report of FAW Toyota’s statement, quoting it in full. [ 1 ]
- IT Home carries the full statement and adds background on GAC Group’s September equity announcements. [ 2 ]
- 36Kr reports the statement, citing FAW Toyota’s official Weibo account. [ 3 ]
- Jiemian publishes the statement under the headline “Will FAW Toyota completely exit the historical stage? The company refutes it”. [ 4 ]
- cnBeta reports the statement and its legal-action warning. [ 5 ]