Toyota to Aid Chinese Dealers

Toyota Motor Corp. has agreed to pay some of its dealers in China 1.2 billion yuan ($198 million) to offset the cost of growing inventories and slowing sales.

The subsidies will be made in three installments to dealers who represent Toyota's venture with FAW Group Corp., according to Bloomberg News. The news service cites an official with the China Automobile Dealers Assn., a trade group that has represented dealers in similar negotiations with other carmakers.

CADA reported in January that 50 or more Toyota retailers in China threatened to quit unless the company provided 2.2 billion yuan ($353 million) in aid. BMW, Renault and Volkswagen all have agreed to help their dealer networks with financial support and more realistic sales targets.