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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

Hydrogen stations that don't work putting a dent in H2 lifestyle

Hydrogen is the most plentiful element in the universe, but it's not abundant enough for some hydrogen fuel-cell vehicle drivers. Southern California lessees of models such as the Hyundai Tucson Fuel Cell SUV are taking to Facebook to voice their complaints about out-of-order fuel cell stations, Green Car Reports says. In many cases, the lack of hydrogen supply has made the cars effectively undriveable. For Tucson Fuel Cell owners, the hydrogen is supposed to be free and unlimited, but Hyundai doesn't manage the stations. One Orange County lessee of a Tucson fuel-cell vehicle hasn't driven the car for over a month because the trio of nearby stations are out of commission. Additionally, some of the stations that do work can only provide about a half-tank worth of hydrogen, once again putting a crimp the driving range of the hydrogen car. California is home to 10 of the dozen public hydrogen refueling stations in the country (there's one each in Connecticut and South Carolina), according to US Department of Energy figures. These sorts of challenges can't help Hyundai's hydrogen efforts. Last month, it was reported that Hyundai has sold fewer than 300 fuel cell vehicles worldwide during the past three years, including about 70 through the first five months of this year. The South Korea-based automaker has said it wants to sell 1,000 fuel-cell vehicles globally by the end of 2015. Fuel-cell drivers and advocates alike are hoping that Toyota will change the game when its Mirai hydrogen vehicles start hitting California roads later this year. Toyota confirmed in May that Mirai US sales would start in October in eight California dealerships. The Northeast is on tap for 2016. Related Video:

Toyota expects hybrids will soon reach 20-percent sales volume globally

Hybrids have come quite a long way from their roots as dull, slow, boring ecomobiles. Today, Porsche sells three hybrid models, one of which is the amazing 918 Spyder. BMW will soon sell four, including a low-slung, two-seat sports car. Even Ferrari and McLaren, full-fledged hypercar manufacturers, are embracing the tech. And all of these cars are sold alongside the same sort of boring cars that popularized hybrids in the first place. According to Toyota Chairman Takeshi Uchiyamada, though, we should see an even bigger increase in the number of hybrid vehicles in the coming years.
"I foresee hybrid models pretty soon reaching 20 percent of global sales from about 13 percent to 14 percent now," Uchiyamada-san told Automotive News. Uchiyamada is the man behind the original Prius, which gives him some degree of authority on making predictions about hybrid adoption.
What's remarkable, though, is that the 20-percent figure doesn't include plug-in hybrids, just gas- and diesel-electric models. "Suppliers need higher volumes to slash costs of components specific to plug-in models, including batteries that should be bigger and more capable than the ones used in traditional hybrids," Uchiyamada told AN.