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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

Autoblog Podcast #389

Episode #389 of the Autoblog podcast is here, and this week, Dan Roth, Chris Paukert, and Mark Pereira from Autoblog Canada talk about Johan deNysschen's move to Cadillac, rumors of more BMW nomenclature changes, a second generation for the Subaru BRZ, and cars from 2004 that we miss. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the new rundown below with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #389: The video meant to be presented here is no longer available. Sorry for the inconvenience. Topics: Johan de Nysschen moves to Cadillac BMW model designations changing even more Subaru BRZ getting second generation Cars We Miss In the Autoblog Garage: 2014 Ducati 899 Panigale 2015 Hyundai Sonata 2015 Volkswagen GTI 2015 Chevrolet Silverato 2500 Diesel Hosts: Dan Roth, Chris Paukert, Mark Pereira Runtime: 01:59:10 Rundown: Intro and Garage - 00:00 Johan deNysschen - 36:12 BMW Nomenclature - 53:58 BRZ - 56:27 Cars We Miss - 01:05:07 Q&A - 01:30:09 Get the podcast: [UStream] Listen live on Mondays at 10 PM Eastern at UStream [iTunes] Subscribe to the Autoblog Podcast in iTunes [RSS] Add the Autoblog Podcast feed to your RSS aggregator [MP3] Download the MP3 directly Feedback: Email: Podcast at Autoblog dot com Review the show in iTunes Auto News Hirings/Firings/Layoffs Podcasts BMW Cadillac Chevrolet Hyundai Subaru Volkswagen

BMW NA chief: US won't get enough i3 EVs to satisfy demand

Nothing boosts the mystique of a new product like a "sold out" sign, and it appears likely that BMW will go that route with its first plug-in sold in the US. The German automaker won't likely import enough of its new i3 plug-in vehicles to meet US demand, Bloomberg News says, citing BMW North America chief Ludwig Willisch. Willisch added that once everything is up and running, the US will be the world's largest market for the i sub-brand of plug-in vehicles, which we know will also include the far racier i8 plug-in hybrid and likely other models as well. The i3 will arrive at US dealerships by the end of May and US dealers are investing $2.5 million in upgrades in part to accommodate the new i sub-brand. Last summer, BMW said its i3 would have a starting price of $41,350, not factoring in government tax credits nor the gas-powered range extender (which tacks on another $3,950). Both versions will be allowed into the high-occupancy-vehicle lanes, even with only one driver, in California though battery-powered version will get the unlimited white sticker (as opposed to limited green one). Check out our review of the i3 here.