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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

Toyota Hilux gets heart transplant from Lexus IS F

The Toyota Hilux might not be sold in the US, but Toyota's venerable pickup has an international reputation of being able to go anywhere and do just about anything. The trucks aren't really known for their speed, though, at least until Toyota South Africa Motorsport's new, one-off project. This bruiser ditches the usual diesel engine and replaces it with an unrestricted 5.0-liter V8 from a Lexus IS F making 449 horsepower. Of course, it takes more than power to handle the rigors of high speed off-roading. The motorsport team also adds bigger, competition-spec brakes, fully adjustable dampers, new springs, and retuned gearing to make the truck look practically ready for the Dakar Rally. The gearbox is really the only part that carries over. The V8 gives the special Hilux quite a mean growl, too. With the new Tacoma just launching in the US, maybe the engineers at TRD need to apply this same concept over here for its own Lexus-engined, one-off pickup.

Toyota finds 10% MPG improvement in hybrid PCU

Keeping up its from-all-angles approach to efficiency, Toyota has found yet another way to eke out up to ten percent more precious MPGs in its hybrid vehicles, this time electronically. The automaker has announced the development of new silicon carbide (SiC) power semiconductors for use in power control units, which it will begin testing on Japanese roads within the next year. The PCU using the silicon carbide compound offers less electrical resistance, which improves efficiency when passing current between the battery and electric motor. It also loses less power after shutting off, and can operate at a higher frequency. The net power loss of the new PCU is just one-tenth of the current silicone-only version (the latter accounting for 20 percent of total electrical power loss in today's hybrids). The result, so far, is a claimed five-percent improvement in fuel economy in test vehicles, with the potential of ten percent by the time the new SiC power semiconductor comes to market. Additionally, the carbide wafers allow for smaller a power module, coil and capacitor, thus allowing the entire PCU to be 80 percent smaller (see the side-by-side comparison in the accompanying photo, which you can click to enlarge). We've got a while to wait before we start to see the carbide technology to start making a real-world impact. Toyota aims to begin using the SiC units in 2020. By then, with improvements in the company's other key efficiency factors - engine technology and aerodynamics - cars like the Prius will likely see significant gains in fuel economy. Read more in the press release below. Toyota Develops 'Diamond-like' Computer Chips to Boost Hybrid Mileage May 20, 2014 Toyota City, Japan – Toyota is using one of the hardest materials in nature after diamonds to develop a semiconductor chip it hopes will improve the fuel efficiency of its hybrids, such as the Prius, by as much at 10 percent. The company and its partners announced today that they have developed a silicon carbide (SiC) power semiconductor for use in automotive power control units. Toyota plans to begin test-driving vehicles with the technology on public roads in Japan within a year. The chips, made from carbide - one of the hardest materials in nature, theoretically have superior characteristics such as one-tenth the electrical power loss and 10 times the drive frequency. Toyota said the chips would also allow it to reduce the size of current automotive power control units by 80 percent.