2014 - Toyota Prius on 2040-cars

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Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Toyota holds onto crown of World's Largest Automaker

Although there were hints and allegations that the Volkswagen Group might have taken the global sales crown for 2014, the final tally puts Toyota at the top with 10.23 million sales in 2014. We should really say it keeps Toyota at the top, since that makes three years in a row the Japanese company has been No. 1. Volkswagen Group came in second with 10.14 million units sold, General Motors in third with 9.92 million units sold. This the first time for both Toyota and Volkswagen to pass 10 million sales in a single year. Toyota, including its Hino and Daihatsu divisions, did it with a three-percent increase in company-wide sales on the back of strong demand in Japan and the US. Its strength in developed markets might be the reason it loses the title this year, though; Toyota forecasts a two-percent gain in sales outside of Japan, but a nine-percent drop in its home market because of a new consumption tax that encouraged buyers to purchase before the end of last year. On top of that, turmoil in Southeast Asian economies like Thailand and Indonesia depressed sales in 2014 and they're facing more headwinds. The company envisions 10.15 million sales in 2015. Volkswagen, on the other hand, "has a jet engine strapped to its back called 'China,'" where Toyota is out-of-sorts. Volkswagen Group sales fell 2.9 percent in the US last year, while Toyota gained 6.2 percent here. But Volkswagen roped in 3.7 million sales in China, a 12-percent increase. Toyota enjoyed a huge bump of 12.5 percent in China, but that only got it to 1.03 million units, missing its yearly target and leading to trouble with its Chinese dealers over unsold inventory. With Toyota on the Chinese sidelines while Volkswagen guns for No. 1 status and pledges more production capacity in China – sales there are expected to top 25 million units this year – it looks like this could be the year the VW Group takes over the lead. That would be three years ahead of its original target of 2018. An analyst in Japan said Toyota is more focused on "keeping profitability than chasing numbers" – profitability is an issue for VW right now – so Toyota might not be back at the top "for [the] coming years." News Source: Bloomberg, Automotive News - sub. req. Earnings/Financials GM Toyota Volkswagen Car Buying Daihatsu sales volkswagen group

Toyota C-HR stays sharp from prototype to production

Scion is dead. While the troubled brand was given 13 years to make a case for itself, it never quite succeeded. And that's a shame, because we're pretty confident that this, the production-spec Toyota C-HR would have been one of its biggest hits. Instead, when it arrives in the US, it will be as a Toyota... where it will still likely be a big hit. The new small CUV made its debut after literally years of teasing concepts, the most recent of which was shown late last year in Los Angeles, where it was badged as a Scion. After seeing that car, it's quite clear that Toyota has strained itself to translate its style to the real world. Up front, there's clear inspiration from the Toyota Auris/Scion iM. But aside from the front, the C-HR's biggest inspiration appears to be the Nissan Juke. View 14 Photos It's like Toyota has tried to go even further, though. Its wheel arches are flared even more aggressively and they feed into a strong character line on the lower portion of the doors. In back, Toyota's designers seem to have just rotated the Juke's taillights 180 degrees while they sit below an extremely fast rear window. Said window is integrated into today's latest design trend, a floating roof. Mechanically, the C-HR rides atop Toyota's New Global Architecture, which is Japan's answer to Volkswagen's MQB architecture. Power comes from a hybrid drivetrain, good for a relaxed 120 horsepower. If you don't want hybrid power, Toyota will sell the C-HR with the Euro-market Auris' turbo 1.2-liter engine, but we almost certainly won't see that here in the US. Instead, American drivers will probably be left with nothing but a 2.0-liter, naturally aspirated four-cylinder. That engine will be exclusively paired with a continuously variable transmission that sends power to either the front- or to all four wheels. So there's Juke inspiration, but not in the driving character. Toyota says it will build the C-HR Hybrid in Turkey. We don't know if that facility will handle US-market vehicles or just Europe, but we wouldn't be surprised to see additional facilities come online to produce this stylish little bugger. Related Video: TOYOTA C-HR Toyota's Fresh New Take on the Crossover 2016 Toyota Motorshow Geneva Making its world debut at the 2016 Geneva motor show, the C-HR gives Toyota a powerful new presence in the crossover market.