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Toyota plotting WRC-inspired Yaris hot hatch

The emergence of the new Honda Civic Type R goes to show that the Japanese can make hot hatches every bit as good as the Europeans. But though it's been a while since Toyota had a serious contender in the game, word has it that it's about to jump back in. The impetus for Toyota's (re-)entry into the hot hatch segment is its impending return to the World Rally Championship. The company announced just a couple of months ago its intention to run a Yaris-based (or at least -styled) rally machine in the WRC by 2017, and now the latest reports indicate a road-going version won't be too far behind. Though the competition-spec model is expected to pack a 1.6-liter turbo four built by Toyota Motorsport GmbH specifically to comply with FIA regulations, the street-legal Yaris hot hatch is tipped to carry the 2.0-liter turbo four from the Lexus NX 200t. Though the jury's still out, it'd likely stick with front-drive instead of a more complex all-wheel drive system, but with a six-speed manual and a limited slip differential, it has all the potential to be a real firecracker. Only a limited number will likely be offered, ostensibly to meet FIA homologation requirement – in the same vein as the Citroen DS3 Racing or the Volkswagen Polo WRC Street – and likely to carry a similarly premium price tag in the neighborhood of 34,000 euros. We'd be pleasantly surprised if any of them were to make it to North American showrooms, though.

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, Lexus recall 460,000 vehicles for stability control issue

Toyota and its luxury subsidiary, Lexus, are recalling 460,000 electrified models produced for the 2020-2022 model years to address an issue that can cause the vehicles' stability control systems not to activate on startup. If you drive a new Toyota or Lexus and it has at least one electric motor in it (or it's the new LX 600), there's a better-than-even chance you'll be hearing from your dealer in the coming months. The good news for owners is that the issue is one of compliance, rather than something which may immediately endanger a vehicle occupant.  "A software error can cause the Vehicle Stability Control system (VSC) not to default to ON the next time the car is started under certain circumstances. This can result in a noncompliance with applicable regulations in the U.S," Toyota said in its announcement. "For all involved vehicles, Toyota and Lexus dealers will update the software of the Skid Control ECU free of charge to customers." Included in the campaign are the 2020-2022 Toyota Venza, Mirai, RAV4 Hybrid, RAV4 Prime, Sienna Hybrid, and Highlander Hybrid. On the Lexus side, it hits the LS500h, LX600, NX350h and NX450h+. Notably absent here are the Tundra-based trucks with the new iForce Max hybrid, though Toyota may have addressed the issue in those models before they went on sale. On the other side of the coin, the LX 600 — a purely ICE model for the time being — managed to stumble into the defect pool.  Toyota says owners should receive notices before the end of June. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Green Recalls Lexus Toyota Safety Luxury