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China's largest dealer body pushes back against foreign automakers over huge inventories

Do not think for a second that automakers forcing inventory on dealers in order to pad the numbers is a ruse known only in the US. Stories of individual brands have hinted at the trouble Chinese dealerships are having trying to move units as the country's economic growth remains hot but comes off the boil, like the one revealing that 95 percent of Toyota-FAW showrooms are losing money. Yet Toyota isn't the only culprit, and the issue has become so dire that the China Automobile Dealers Association (CADA), the largest dealer body in the country, has written to the government to complain. Chinese car sales are expected to close out the year with an annualized growth of six-percent, down from last year's 14 percent when targets were set, while in the background the pace of overall economic expansion is the slowest its been since the early nineties. Automakers, shipping cars on schedule to make their earlier targets, have blown up inventories such that they are an average of 1.8 times monthly sales, when the preferred multiplier is from 0.9 to 1.2. According to the CADA, the price wars and necessary incentives mean that only 30 percent of dealers are operating in the black. That number is down a whopping forty percent since 2010. In response, Toyota has already said it will not make its 2014 target of 1.1 million cars sold. We're a long way from 2012, when Toyota planned on selling 1.8 million cars in China in 2015, a target that's now as realistic as a manticore. BMW, Honda and Nissan have erased numbers on their spreadsheets, too; BMW growth dropped from 20 percent to 8 percent midyear after it began "reducing wholesale supplies," and Honda has been reworking its plans as sales have decreased each of the past six months. It's a big deal for Chinese dealers to begin protesting publicly, the CADA saying, "In the past, dealers were angry, but dared not speak out. But now, they have to shout because the situation is getting so unbearable." With six-percent growth forecast for next year and dealers unwilling to remain underwater, The Year of the Sheep coming in 2015 could portend meaning beyond the zodiac. News Source: ReutersImage Credit: AP Photo/Andy Wong BMW Honda Nissan Toyota Car Buying Car Dealers

Automakers' sound systems: Crank it, don't yank it

Years ago, one of the first things most music lovers did after buying a new vehicle was drive to an aftermarket stereo shop to get the crappy stock components swapped for better gear. And you'd typically get not only better sound but also more bang (and boom) for your buck. But in the past decade or so, the overall quality of OEM audio has dramatically increased, while car electronics became more complex, removing the incentive for most new vehicle owners — and all but the most hardcore DIYer — to start from scratch. In 2010, I did a comparison of the average costs for OEM electronics vs. similar offerings from the aftermarket, and back then automakers' stock premium systems were by far the best bargain — and are probably an even better value now. The premium 14-speaker, 1,200-watt JBL system in the all-new 2019 Toyota Avalon is a prime example of this trend. It's standard on the top two Limited and Touring trims and is available as a $680 audio upgrade on the XLE and XSE. I doubt you can even buy 14 speakers and 1,200 watts of amplification from the aftermarket for 700 bucks, much less have it all installed. And because the system is bundled with Toyota's Entune infotainment system, Apple CarPlay and a surround-view camera, removing the head unit means you would likely lose these features. Another advantage of OEMs and their audio partners is they can design the car around the audio system. In the past, automakers would typically place speakers where convenient for packaging, not for optimal sound reproduction, and audio engineers were forced to compromise. But as with the Avalon's premium JBL audio system, this is starting to change. At a recent behind-the-scenes peek for media into the process of developing the system, Toyota and Harman engineers delved into the minutia of sealing the inner panel of the front doors to create an enclosure for 6x8-inch woofers, making space in the pillars for JBL horn tweeters and extensively measuring the acoustic properties of the interior to tune the sound to the space. I'm met some creative and skilled car stereo installers, but none with a degree in psychoacoustics. The system is also the first to feature Quantum Logic Surround that creates a multi-channel listening experience from two-channel sources. And it includes Harman's Clari-Fi processing that "rebuilds key details lost" in compressed audio formats used by streaming music services and MP3s.

BMW builds its 2 millionth 1 Series on eve of new model's launch

Hard as it may be to believe, it's been over ten years since BMW launched the first 1 Series, taking the Bavarian automaker into more accessible territory for the first time. Later this month, the first examples of the new model will arrive at dealers, but before it does, the littlest BMW has another reason to celebrate as the 2 millionth unit has rolled off the line. The landmark example is a 120i five-door equipped with the M Sport package and painted in Estoril Blue, bound for a customer in Japan. The achievement is even more noteworthy when you consider that what started out as the 1 Series has since been split into two lines. The three- and five-door hatchbacks remain part of the 1 Series, while the coupe and convertible we get in the US that were once part of the 1 Series as well have since been spun off as the separate 2 Series. Production of the three-door takes place exclusively at BMW's plant in Regensburg, while the five-door is split between Regensburg and a second plant in Leipzig. Buyers are further able to specify between diesel and gasoline engines ranging from three cylinders all the way up to six. Show full PR text Two reasons to celebrate: BMW 1 Series production hits the two-million mark – New edition writes a fresh chapter in the compact model's success story. Munich. 28 March 2015 sees the curtain raised on the market launch of the new BMW 1 Series. Fans of compact driving pleasure can look forward to an even more striking design, a further refined premium ambiance for the interior, engines that are extremely powerful and even more efficient, and innovative equipment features. Ahead of the launch, news filtered through from BMW Plant Regensburg of another reason to smile as the two-millionth BMW 1 Series rolled off the production line. The landmark car was built just a few days after the start of production for the new version of the compact model and is one of the first examples of the new BMW 1 Series range earmarked for export to Asia. The BMW 120i 5-door, painted in Estoril Blue metallic and equipped with an M Sport package, will be delivered to a customer in Japan. This production landmark at BMW Plant Regensburg represents another milestone in the international success story of the BMW 1 Series. In late summer 2014 the company celebrated the model series' tenth birthday.