Toyota Motor Corp and its two Chinese partners have jointly establish a logistics company in the northern port city of Tianjin to improve delivery efficiency.
The three parties, including China's First Automotive Works Group and Guangzhou Automobile Industry Group Co Ltd, have poured US$5 million as registered capital of the Tong Fang Global (Tianjin) Logistics Co Ltd, Toyota said in a statement yesterday. Toyota owns a 40 percent stake in the logistic firm, leaving FAW to take 35 percent and Guangzhou Auto 25 percent.
Operations at the logistics group began at the beginning of this month.
"The TFGL will make better use of Toyota's advanced management experience, along with both companies' logistics expertise, to target the lowest logistics cost," the world's second largest car maker said in the statement.
The logistics company comes four months after Toyota inaugurated its fourth plant in China.
The Japanese car maker is expanding production capacity and accelerating sales in the world's second-largest auto market to further strengthen its leading position against General Motors Corp worldwide.
Toyota partnered with Guangzhou Auto and FAW, China's second-largest auto group, for locally producing mainstream models including the Corolla, Reiz, Vios and Camry sedans with an overall annual capacity of more than 600,000 units.
It also has four engine plants in Tianjin, Guangzhou and Changchun turning out one million units every year.
Although Toyota's sales have been increasing rapidly over the past few years, aided by several new models, it still lags behind GM and Volkswagen.
Half-year sales increased 77 percent to 212,000 units.
(Shanghai Daily October 9, 2007)
