Toyota City, Japan, April 27, 2020―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.
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 management of manufacturing affiliates under TFTM, the entire production system can be optimized; this will result in a 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.