Masayuki Igarashi, head of Honda China, stated that the company is currently not considering a merger between its two joint ventures, GAC Honda and Dongfeng Honda. He noted that the partnership with Dongfeng Honda has not yet expired, while the agreement with GAC Honda was recently renewed.
The statement follows recent reports regarding GAC Group's plan to acquire a stake in a joint venture from FAW Group. GAC Group announced on September 14 that it signed a letter of intent to purchase shares in a vehicle joint venture through a stock issuance, which will make FAW Group the second-largest shareholder of GAC Group.
Media reports identified the target company as FAW Toyota. However, sources indicate that GAC Group will not acquire the entirety of FAW's stake, meaning FAW Toyota and GAC Toyota will remain separate entities. This development aligns with broader government support for market-driven restructuring among large automotive groups to reduce redundant R&D and production.
