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10% of Toyota China dealers may drop due to losses

News about the auto industry in China is usually positive thanks to booming sales and an ever-increasing number of factories across the country. But in some cases, it appears that the dealers with the job of actually selling all of those vehicles are having trouble finding buyers. The result is cars piling up on lots and showrooms resisting against automakers. Japanese automakers already face a tough road to success in China, but the FAW-Toyota joint venture is especially struggling this year. According to Bloomberg, as many as 10 percent of the dealers might have to close or stop selling the brand because they just can't make money selling the vehicles on their lots. Also, 95 percent of the showrooms are reportedly losing money. The issue facing FAW-Toyota sellers is mostly a case of supply and demand. Automakers in China mandate the number and types of vehicles that dealers sell. However, the inventory from all makes is at its highest level since August 2013, according to Bloomberg. The situation leaves dealers with packed lots, and cars often require discounts to move. Making matters harder is that showrooms have annual sales targets, which are linked to bonuses. This money can account for over half of the sellers' annual profits, according to Bloomberg. The FAW-Toyota dealers are pushing back by asking Toyota for 2.2 billion yuan ($355 million) to pay for costs associated with the extra inventory. It also lowered sales targets by six percent earlier this year and has requested no increase in the numbers for 2015. News Source: BloombergImage Credit: Nelson Ching / Bloomberg via Getty Images Earnings/Financials Toyota Car Buying Car Dealers

Next-gen Toyota 86, Subaru BRZ could arrive by 2021

If these rumors are true, a small but dedicated core of fans could be in for a treat. According to Japan Times — and citing unspecified "sources" — Toyota and Subaru are developing a next-generation 86 and BRZ, with a possible launch around 2021. The new car(s) would reportedly have more power, improved handling and newer safety features. According to the report, the rear-drive sports coupes could do away with the current 2.0-liter engine in favor of one with a larger 2.4-liter displacement. The Japan Times sources say the next-gen 86 will also have a lower center of gravity, which will translate to an improvement on the car's already impressive cornering stability. Theoretically, the 2.4-liter in question could be the new FA24 mill used in the upcoming Subaru Ascent crossover that's turbocharged to produce 260 horsepower and 277 pound-feet. That output would be a mammoth jump from the current Toyobaru pair, and it seems doubtful that's what possible second-generation cars would get. Nevertheless, it's at least consistent with recent comments from Toyota engineer Tetsuya Tada that indicated a more powerful, turbocharged 86/BRZ would not be possible unless there was a new, next-generation model. In an interview with Australia's CarAdvice, Tada said, "I do like turbos, however if we come up with a turbo version of the 86 and boost up the power that would result in the necessity of changing the basic configuration completely, to come up with a car that I would be satisfied with." "One characteristic of the 86 is that in terms of the front balance it's slightly front loaded so it makes the handling more fast and agile," he continued. "So if we were to come up with a turbo version, we would have to go change the weight balance between the front and the rear. That means we have to come up with a completely new platform, so it's not about just changing or slight modification in the engine parts." Note that "we have to come up with a completely new platform" does not equal "we are coming up with a completely new platform." He could be talking strictly hypothetically, it could be a wink-wink nudge-nudge implication that his team is already hard at work, or things could've just been a bit fudged in translation. In any event, as hopeful as we are about the possibility of a new generation of Subaru BRZ and Toyota 86, we can't help but maintain a healthy dose of skepticism that the partnership will continue as the Japan Times report suggests.

Watch this video diary of a 900-hp Toyota Supra build

If you've ever looked at a car with nearly 1,000 horsepower and wondered why anyone needs that amount of thrust, you may want to take a look at the video below. In it, one gentleman details his descent into Toyota Supra madness, starting with a pristine factory example and stumbling down the rabbit hole of modification. What makes this particular clip interesting is just how honest the owner is as he explains the evolution of his car. He doesn't just prattle off a list of parts like he's reading the menu at an IHOP.
Instead, he painstakingly pulls us through the car's growth, detailing each iteration and what pushed him to the next stage of the build every time. From this point of view, it looks less like someone walked into a shop and lit a massive stack of $100 bills on fire and more like a quasi-logical progression of events. Or at least it does to me. You can check out the build in the video below, complete with plenty of Fast and the Furious references and racing. Win, win, win.