Toyota Motor Corp. and General Motors Corp. have established a 50-50 joint venture to coordinate production and sales of passenger cars in Australia in line with the Australian government's automobile industry restructuring policy, the Japanese company announced Monday.
The new firm, United Australian Automotive Industries Ltd., was formed by Toyota's subsidiary, Toyota Motor Corp. Australia Ltd., and General Motors-Holden's Automotive Ltd., a GM subsidiary.UAAI, a holding company, will initially retain 30 percent equity in each of the two subsidiaries. The remaining 70 percent share in each of the firms will be held by Toyota and GM, the company said.
The new company will then take over the entire equity in the two subsidiaries in the middle of 1989, it said.
The decision is in line with the Australian policy to reorganize five foreign automobile firms operating in the country into three groups to help strengthen competitiveness of local manufacturers.