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China's largest dealer body pushes back against foreign automakers over huge inventories
Mon, Jan 5 2015Do 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
Honda reveals more with Civic Type R concept bound for Paris
Mon, 29 Sep 2014The reveal of the next-generation Honda Civic Type R has been a gradual one. First Honda showed us a camouflaged prototype, then let us drive one at its Japanese proving ground and followed up with a concept at the Geneva Motor Show. Now with the Paris Motor Show looming on the horizon, it has revealed yet another concept to keep hot-hatch enthusiasts on their toes.
The second Civic Type R concept appears almost identical to the first one - right down to the aggressive aero kit, quad exhaust tips, oversized wheels and ultra-low-profile rubber - but wears a new coat of Superman blue with go-fast decals. With its release, however, Honda has confirmed some of the salient details set for the production version.
In the nose sits a 2.0-liter turbo four with 276 horsepower and a 7,000-rpm redline, mated to a six-speed manual transmission. Adaptive dampers and a "steer axis" system promise to keep the power under control, while a push of the +R button tightens up the suspension, steering and torque mapping.
Recharge Wrap-up: Honda Legend Sport Hybrid launching in Japan; driving cross-country on chicken fat
Tue, Nov 11 2014Honda will begin sales in Japan of the Legend Sport Hybrid SH-AWD in January. The Legend is Japan's answer to the Acura RLX Sport Hybrid sold in the US. Up front, the new flagship sedan uses a 3.5-liter V6 with cylinder deactivation and a seven-speed, dual-clutch transmission with integrated electric motor. In the rear, a dual electric motor unit supplies power to the wheels. The three electric motors are also used for generating electricity during deceleration. The car has three drive modes, including EV Drive, Hybrid Drive and Engine Drive. The result is a fuel economy rating of 40 mpg, according to the JC08 cycle. Read more at Green Car Congress or in Honda's press release below. While Jay Leno explains how marketing early electric cars toward women caused them to lose out to internal combustion, the same can't be said about the current era of EVs. Leno says that early EVs, like Leno's beloved Baker, appealed to women because they were quiet, clean, and didn't require cranking to start them. This led to accessorization marketed toward women, causing men - who had more buying power than women at the time - to shy away from EVs. This time around, though, EVs target a broader audience in a different culture from the early 20th century. See Leno explain the early EV culture while driving his Baker Electric in the video below and read more at Hybrid Cars. GKN's two-speed eAxle allows EVs to make the most of both acceleration and top speed. Single-speed transmissions must sacrifice top speed for acceleration, or vice versa. In addition to improving performance at all speeds and increasing range, the GKN's eAxle also performs well in terms of NVH, providing seamless shifts and low gear noise. In order to package the eAxle in the BMW i8, the unit is just 12.8 inches by 22.1 inches by 12.3 inches and weighs 60 pounds. Read more at Green Car Congress. An alternative fuels researcher at Middle Tennessee State University will drive a truck powered by chicken fat biodiesel across the country. Professor Cliff Ricketts is driving a converted 1981 Volkswagen Rabbit pickup from Key West, FL to Seattle, WA to demonstrate the viability of chicken fat as a fuel. Ricketts admits, though, that the truck's exhaust stack is loud and smells like French fries. Read more at Domestic Fuel. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.