One of Toyota Motor Corp.’s automaking partners in China plans to sell a 15 percent stake in its joint venture to parent China FAW Group to raise money for updating products and restructuring.
Tianjin FAW Xiali Automobile Co. will book a 2.5 billion yuan ($376 million) gain with the sale and reduce its holding in the three-way venture to 15 percent, the company said in a statement Saturday. FAW Group will hold 35 percent after the transaction, with Toyota’s 50 percent stake remaining unchanged.
Tianjin FAW said its sales have been shrinking because it failed to keep pace with restructuring and new products at rivals. The company, which reported a net loss in the quarter ended March, will complete its restructuring by 2018.
The FAW Group also has carmaking ventures with Volkswagen AG and Mazda Motor Corp.