Toyota Motor Corp. (TYO:7203) has agreed a three-way alliance with China FAW Corp. and Guangzhou Automobile Group Co. (HKG:2238, SHA:601238), two state-owned Chinese carmakers that are already its partners in China, Jiji Press reported on October 9. 

The deal restructures how the Japanese carmaker works with its Chinese partners. Toyota operates two separate joint ventures in China: FAW Toyota Motor Co. with China FAW, and GAC Toyota Motor Co. with Guangzhou Automobile. The new arrangement is intended to speed up the shift to electric vehicles and add more smart functions to cars.

Under the agreement, Guangzhou Automobile will take over China FAW's 50% holding in FAW Toyota. It will pay for the stake by issuing new shares to China FAW.

Once the share transfer is complete, China FAW will become "a key strategic shareholder" of Guangzhou Automobile, according to a joint statement from Toyota and the two Chinese companies.

The three carmakers said they would work together more closely on research and development, purchasing, manufacturing and sales under the new structure.

The announcement did not give a value for the stake or say when the share transfer is expected to close.