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COMING UP:Share Opener Variant 2

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Transcript

00:00:01
>> Toyota's about to take an unlikely route to make sure it can stay in the world's biggest car market, China. Beijing set strict new quotas on green energy cars if foreign auto makers wanna stay in the game. So Toyota's planning to sell an electric vehicle here that won't wear the Japanese company's distinctive logo.
00:00:20
Instead it will wear the brand of GAC, Toyota's local partner. A move like this would have been unthinkable years ago. But it works as a quick fix to meet Beijing's demands. Reuters Adam Jordan in Shanghai explains what it will look like.>> According to our sources, the car is expected to be a fully electric, more affordable vehicle SUV.
00:00:42
It's gonna be called the GAC Toyota iX4 and it's based on sort of architecture of one of GAC's Trumpchi models. That sort of flagship vehicle.>> It will give GAC access to the Japanese carmakers' stringent quality control, prestige and sales channels. For Toyota, it's a quick way to meet Bejing's new green vehicle requirements that come into play next year.
00:01:05
Under the new rules electrical hybrid vehicles must represent 10% of a carmakers output. And then in 2020 the quota will go up to 12%.>> Five, ten years ago, this sort of move would have been unthinkable that a big, foreign car maker would look to leverage their technology and expertise of a local partner.
00:01:24
Traditionally, you know, you have the big OEMs, your Fords and GMs or Toyotas coming in to China, and they would bring their technology and expertise. But the idea that Toyota is looking to leverage the technology of GAC to create these more affordable EV cars, really reflects how this push towards green vehicles is making people change strategy.
00:01:44
>> Until recently, Toyota was one of the industry's major hold outs against full electrification of cars. The company's plan was to skip battery powered cars and go straight to hydogen fuel cell technology. But this is the world's top auto market. And it looks like a change in China's road rules could drive even the biggest brands to go green.