s many as 10 percent of dealers for one of Toyota Motor Corp.'s China ventures are poised to drop out of the network because they can't make money on the cars they're told to sell, a dealer's group said. Among the 523 distributors in the FAW-Toyota Motor Sales Co. group, 95 percent are losing money, said Song Tao, a deputy secretary of the China Automobile Dealers Association.
Some dealers may have to stop selling FAW-Toyotas or shut altogether because of the losses, he said. The looming defections come as the state-backed dealer's group sent a letter to FAW-Toyota on Friday seeking about 2.2 billion yuan ($353 million) in subsidies to help meet costs caused by excess inventory, according to a copy sent to Bloomberg News.
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