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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

Honda may recall up to 1M vehicles for airbag issue, following Toyota's lead

It seems Toyota won't be the only one recalling the faulty Takata airbag inflators for long. Honda insiders in Japan claim that the company is getting close to announcing its own worldwide campaign that would begin before the end of June.
Unnamed sources close to Honda in Japan tell Automotive News that the company is pursuing an internal investigation into possibly affected models and is working with Takata to gather more information. They claim that it could involve even more than the 1.14 million cars worldwide that the automaker covered under the first recall for the problem in April 2013, including 561,000 vehicles in the US.
Toyota jumpstarted this process last week when it recalled over 2 million cars worldwide, including 844,277 in the US. Soon after, the National Highway Traffic Safety Administration began a preliminary evaluation into the issue following six reported incidents, and started assembling data about potentially affected models from Toyota, Honda, Mazda, Nissan, Chrysler. NHTSA also began investigating Takata itself.

Honda CR-Z carbon-fiber prototype

When Honda rolled out the CR-Z a few years ago, it hoped to bridge the gap between those who would save the planet and those who would rather burn all of its resources in a glorious cloud of tire smoke. But enthusiasts recalling the CRX of 1980s vintage balked, imploring Honda to ditch the heavy battery packs and electric motors in favor of a lighter-weight, more conventional powertrain. At this point it seems less likely that Honda would do so at one end of the market than Porsche would ditch the hybrid component of its 918 Spyder at the other. But that doesn't mean Honda isn't still cooking up ways to curb the CR-Z's weight. And it had just one such idea waiting for us when we visited its Japanese R&D center at Tochigi last week.
Nestled in between the JDM hatchbacks, powertrain test mules and new technology prototypes Honda rolled out for us sat the experimental CR-Z you see here. While it may look mostly like the hybrid sport-hatch you can pick up at your local dealer (albeit blacked out), nearly all of this prototype's bodywork has been completely replaced, as have its basic underpinnings, with carbon-fiber reinforced plastic. The exotic material is usually reserved for high-end exotics, but like BMW is democratizing its use in the new i3, so too is Honda researching ways to implement the use of carbon fiber on a mass scale. This one-of-a-kind CR-Z prototype stands, for the time being, as the embodiment of that effort.
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