On the evening of October 30, GAC GROUP (02238) responded on an interactive platform to investor inquiries regarding recalls of so-called "instant vehicles," stating that as of now, the company has not been required to implement any recall due to such issues.
The company said it has always treated quality and safety as its core DNA, resolutely refrains from building "instant vehicles," and upholds the bottom line of forward-looking research and development. It has established a complete testing and validation system covering whole vehicles, systems, and components, including 12 major vehicle validation categories and more than 1,500 validation sub-items, as well as extreme-environment validation standards such as "two winters and one summer" and "five highs, one mountain, and one dust test," ensuring that every vehicle can withstand the test of time.
At the same time, the company has set up a full-lifecycle quality traceability and recall mechanism to effectively safeguard consumers' personal safety and lawful rights and interests.
In addition, regarding investors' interest in the acquisition of FAW Toyota, Guangzhou Automobile Group Co.,Ltd. (601238) said the company plans to purchase a 50% equity stake in FAW Toyota held by FAW by issuing shares. The transaction will promote the coordinated operation of Toyota's northern and southern joint ventures, stabilize the profit foundation of the joint venture business, and is expected to make a positive contribution to the company's investment income and net profit.
As of now, the transaction is still at the preliminary plan stage, and the transaction price, final plan, regulatory approval, and the synergy effects after completion are all subject to uncertainty. The company reminds investors to be aware of investment risks. It will strictly fulfill its information disclosure obligations going forward, and progress on the transaction should be based on company announcements.
The discussion of "instant vehicles" stems from a large-scale recall involving more than 4.27 million vehicles in August this year, which also sparked widespread debate across the industry about validation risks hidden behind the rapid iteration of new energy vehicles.
Amid rapid industry expansion, some automakers have fallen into a "speed-only" mindset, rushing models to market before some extreme-condition validation is sufficiently completed in order to accelerate launch schedules. It should be noted, however, that there is currently no rigorous and unified definition of "instant vehicles" in the industry, nor is there an official classification or characterization at the national level.
It is also understood that, regarding GAC's acquisition of FAW Toyota, on October 8, China FAW, Toyota Motor, and GAC Group signed a new strategic cooperation framework agreement in Guangzhou, finalizing arrangements related to the equity acquisition. After joint consultation among the three parties, GAC Group plans to acquire a 50% stake in FAW Toyota held by China FAW through the issuance of shares.
After the transaction is completed, FAW Toyota will continue to exist as an independent operating entity, and China FAW will become an important strategic shareholder of GAC Group.
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