GAC Group Says It Has Not Been Ordered to Recall Vehicles Over the "Rushed Car" Controversy and Plans to Acquire 50% Stake in FAW Toyota
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Author:小编   

GAC Group recently stated that it has not faced any requirement to recall vehicles over the "rushed car" issue. The company stressed that quality and safety have always been at the core of its DNA, and that it firmly refuses to build "rushed cars." It said it adheres to its bottom line of steady development, maintains a comprehensive testing and validation system, and has put in place a quality traceability and recall mechanism covering the full product lifecycle. As for the plan to acquire FAW Toyota, GAC Group intends to purchase, through a share issuance, the 50% stake in FAW Toyota held by FAW Shares. The three parties had previously signed a strategic cooperation framework agreement to formalize the relevant arrangements. Once the transaction is completed, FAW Toyota will continue to operate as an independent entity, and China FAW will become an important strategic shareholder of GAC Group. The deal is expected to promote coordinated operations between GAC Toyota and FAW Toyota, strengthen the profit base of the joint venture business, and make a positive contribution to the company's investment income and net profit. The "rushed car" topic stemmed from a large-scale recall in August this year involving more than 4.27 million vehicles, highlighting the problem that, amid rapid industry expansion, some automakers are pushing vehicles to market before they have been sufficiently validated under extreme conditions in order to accelerate launch timelines. At present, there is still no rigorous and unified definition of "rushed cars" in the industry, nor is there any corresponding official classification or formal characterization at the national level.