Toyota's Chinese joint venture FAW Toyota has denied online reports that it is slashing prices or planning to leave the Chinese market. In a statement, the company said production, sales, and development plans for all models are progressing as scheduled, and it reserved the right to take legal action over the false claims.
The denial follows GAC Group's September 28 announcement that it would acquire FAW Group's 50% stake in FAW Toyota. Once completed, Toyota would retain its 50% share, with GAC taking the other half. The move is widely seen as an effort to streamline operations and revive Toyota's flagging sales in China.
Toyota's China sales fell 22.8% in August, marking the seventh consecutive month of decline, as weak demand for gasoline and hybrid models continued amid high fuel prices. The company said it will use the group's broader resources and technology for upcoming vehicles.