Toyota China Deal Hints At Industry Shakeup
Toyota faces mounting pressure in China as a potential tie-up between its main partners signals a broader industry restructuring. S&P Global warns of ongoing overcapacity and intense price wars.
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TOYOTA MOTOR CORP plans to overhaul its operations in China as Guangzhou Automobile Group agreed to acquire a stake in its FAW joint venture, cutting costs by 15%. The proposed deal signals the end of decades-old foreign joint-venture models across the world's largest auto market. Profit margins in vehicle manufacturing fell to 1.5% following brutal price wars among more than 100 competing brands.
