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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

BMW X5 driver repeatedly fails to understand big rig braking distances

Nobody should be shocked that a big, heavy vehicle like a semi truck takes a longer distance to stop than the average passenger car; it's just basic physics. However, this BMW X5 driver seemingly has a major problem grasping the concept, and it results in some serious damage to the back of his SUV.
The whole incident is very confusing to watch. The BMW doesn't even seem to have a reason to slow down before the semi slams into the back of it at fairly high speed. But to make the situation even weirder, the crashes just keep happening again and again.
To give the BMW driver a little credit, he appears amazingly calm when surveying the damage afterward. But you have to wonder what this guy was thinking when trying a harebrained move like this. Check out the video to watch the carnage unfold.

Audi tops BMW and Mercedes in luxury sales

April was a good month for Audi, as the four-ring automaker beat out both Mercedes-Benz and BMW in sales. Bloomberg reports that it was America's appetite for CUVs like the Q5 and ancient Q7 that helped Audi move nearly 153,000 units around the globe. It's not all good news, though. Audi's worldwide sales only jumped by 2.5 percent, compared to BMW and Mercedes, whose sales increased 5.6 and 11 percent, respectively. On top of that, BMW is still the best-selling brand (of the three, anyway) so far in 2015, outselling Audi by roughly 9,000 units and Mercedes by about 23,000 vehicles. Considering the faster growth of its rivals, it's unclear if Audi will be able to hang onto the monthly sales crown beyond April, or if BMW will continue its reign as the world's biggest luxury automaker.