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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

BMW maintenance plan no longer transferrable to 2nd owner

One of the best innovations in car buying in recent years is the rise of no-cost scheduled maintenance programs. Many people feel really anxious about taking their car in for service, and these deals help mitigate that somewhat. Obviously, it's not free for automakers to implement the offers, and now BMW is altering the way its four-year, 50,000-mile Maintenance Program works for some owners. "To keep such an offer sustainable we had to make a change," said Kenn Sparks, Manager of Business Communications at BMW North America, to Autoblog via email.
The original person to buy or lease the model isn't going to see any difference, but the program is no longer transferable to a second owner, unless that person is in the owners household. Those people include includes parents, siblings, grandparents and grandchildren, in addition to someone like a spouse or children. The original owner just has to advise BMW of new user. "The program change will affect 2nd owners and for them BMW is introducing an optional full-maintenance product that covers the vehicle up to 100,000 miles," said Sparks. Scroll down to read the entire announcement.

BMW Vision Future Luxury Concept is bold and beautiful in Beijing

BMW officially unveiled the Vision Future Luxury Concept today (or is it tomorrow?) at the 2014 Beijing Motor Show, giving the world's media an in-the-flesh look at not only a future design theme for the brand, but a rumored flagship model.
This is a looker in person, thanks to its Pininfarina Gran Lusso Coupe-inspired design, and it's not too difficult to imagine it in production car form, with smaller wheels, larger mirrors and the other minor transformations that take place from drawing board, to auto show and, finally, to assembly line. In general, it seems like there are more than a few parts of this vehicle that are ready for production.
We didn't talk about it in our initial post, but it bears mentioning that this particular concept is wearing an eDrive badge on its backside, indicating that under the Vision Future Luxury's long hood is some form of plug-in-hybrid propulsion. It's anyone's guess as to what engine, battery and motor combinations BMW is playing with, although it does seem questionable whether BMW would launch a PHEV flagship to do battle with a top-rung variant of the Mercedes-Benz S-Class (which will likely use V12 power).