FAW Group will expand cooperation with Guangzhou Automobile Group and its controlling shareholder, Guangzhou Automobile Industry Group, under a strategic framework agreement focused on operational efficiency, joint technology development and resource sharing. The agreement follows GAC’s announcement that it plans to acquire a 50% stake in FAW Toyota from FAW through an A-share issuance, which would make FAW GAC’s second-largest shareholder. The transaction value remains undetermined pending audits and asset valuation, while GAC shares rose more than 14% in early trading after resuming on September 29. The China Association of Automobile Manufacturers has called for policy support to overcome barriers to consolidation as China seeks by 2030 to strengthen smart electric vehicle production, curb overinvestment and eliminate inefficient capacity.