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Loss-Making Toyota Dealers in China Demand Lower Targets

A group representing Toyota Motor Corp. dealers in one of China’s richest provinces is demanding that the automaker increase financial support and cut its sales targets to help reduce distributor losses.

More than 80 percent of the dealers in Jiangsu province for Toyota’s joint venture with China FAW Group Corp. made losses or barely broke even, according to the Jiangsu Automobile Trade Management Association. Some retailers have as much as 10 months worth of sales inventory, the group said, citing its surveys of the distributors.