Apr 27, 2020 14:06 JST

Source: Toyota Motor Corporation

Toyota and FAW Restructure their Joint Company's Management Systems with the Aim of Sustainable Growth in China

Toyota City, Japan, Apr 27, 2020 - (JCN Newswire) - China FAW Group Co., Ltd. (FAW) and Toyota Motor Corporation (Toyota) will restructure their management systems with the aim of achieving sustainable growth in China. As part of the restructuring, Tianjin FAW Toyota Motor Co., Ltd. (TFTM) will become a FAW-Toyota manufacturing and supervising affiliate; all other body and engine manufacturing affiliates will become wholly owned subsidiaries of TFTM.

Joint Company's Management Systems

More specifically, the restructuring affects the following four companies within the FAW and Toyota joint enterprise: the body manufacturing affiliates Sichuan FAW Toyota Motor Co., Ltd. (SFTM Chengdu) and SFTM Changchun Fengyue Co., Ltd. (SFTM Changchun), and the engine manufacturing affiliates Tianjin FAW Toyota Engine Co., Ltd. (TFTE) and FAW Toyota (Changchun) Engine Co., Ltd. (FTCE).

The goal of the restructuring is to better respond to China's rapidly changing markets. By centralizing the management of manufacturing affiliates under TFTM, the entire production system can be optimized; this will result in more effective use of resources and more efficient operations and this, in turn, is expected to lead to improved competitiveness. The restructuring is also intended to clarify reporting lines, thereby strengthening governance and accelerating decision-making processes at all its affiliates.

Tatsuro Ueda, Chief Executive Officer of Toyota's China Region, said: "Thanks to the support of the Chinese government, our partner FAW, and our Chinese customers, the FAW-Toyota business will next year celebrate its 20th anniversary. After discussions with FAW, we decided to reorganize our management systems with the goal of achieving lasting growth for FAW-Toyota."

As part of this restructuring, FAW Toyota Research & Development Co., Ltd. (FTRD), FAW-Toyota's research and development company, will also become a wholly owned subsidiary of TFTM. There is no change in the ownership of FAW Toyota Motor Sales Co., Ltd., FAW-Toyota's sales company; in practice, however, its management will report to TFTM, and by unifying its management, it will seek to realize a single streamlined structure from development through production to sales. Going forward, all Toyota enterprises in China will work together to make cars that provide its Chinese customers with happiness.

About Toyota Motor Corporation
Toyota Motor Corporation works to develop and manufacture innovative, safe and high-quality products and services that create happiness by providing mobility for all. We believe that true achievement comes from supporting our customers, partners, employees, and the communities in which we operate. Since our founding over 80 years ago in 1937, we have applied our Guiding Principles in pursuit of a safer, greener and more inclusive society. Today, as we transform into a mobility company developing connected, automated, shared and electrified technologies, we also remain true to our Guiding Principles and many of the United Nations' Sustainable Development Goals to help realize an ever-better world, where everyone is free to move.

SDGs Initiatives: https://global.toyota/en/sustainability/sdgs/

Source: Toyota Motor Corporation
Sectors: Automotive

Copyright ©2020 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Latest Release

More Latest Release >>