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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

Honda will build 2014 Accord Hybrid in Ohio

Honda has announced that it will invest $23 million in its Marysville, Ohio facility to support production of the upcoming 2014 Accord Hybrid sedan. According to the manufacturer, this means approximately 50 new jobs will be created, and the whole investment will result in a 95,000-square-foot expansion of the Marysville plant.
The Accord Hybrid joins the decidedly homely Accord PHEV (pictured) this fall, using a 2.0-liter i-VTEC Atkinson cycle four-cylinder engine mated to a 124-kilowatt electric motor. Honda has yet to release official power or fuel economy figures for the non-plug-in hybrid version of the Accord.
Honda currently operates four manufacturing facilities in Ohio, with the combined capacity to build up to 700,000 cars and light trucks each year. The Japanese automaker also has a facility in Greensburg, Indiana, where the Civic Hybrid and Acura ILX Hybrid are built.

The Honda Crosstour is no more

While hardly the most surprising news in the automotive world, it's with sad hearts that we report the passing of any automotive nameplate... even when it's as generally unloved as the Honda Crosstour. In a statement from American Honda, Executive Vice President John Mendel confirms the quirky, sort-of wagon's demise for the 2016 model year. The Crosstour was introduced in 2010 as a compromise between a crossover and a traditional station wagon. However, unlike the popular Subaru Outback with a similar melding of styles, Honda's was never able to really catch on. Honda America's CEO was disappointed with sales as far back as 2011, and an attempt to make the model look a little more rugged didn't work. In 2014, 11,802 Crosstours were sold, a 29.9-percent drop from the year before. In its announcement for the vehicle's discontinuation, Honda says the new HR-V should "play a more significant role as a gateway model." The company thinks the crossover segment today has changed from when the Crosstour debuted. The capacity at the East Liberty Plant in Ohio previously required for Crosstour production will be used for the more popular CR-V, Acura RDX and, as of early 2017, the MDX. Meanwhile, production of the Honda Accord Hybrid will be moved from the Marysville Auto Plant in Ohio to Japan. Statement by John Mendel, Executive Vice President, American Honda Motor Co., Inc. Re: North American Production Portfolio Apr 8, 2015 Honda's growth strategy in North America is keyed to aligning our product portfolio and related production around the needs of our customers and growth segments in the marketplace. This includes the fortification of our light truck line-up with the recent introduction of a refreshed version of America's best- selling SUV, the CR-V, as well as the all-new 2016 HR-V, a new 2016 Pilot, and the next generation Ridgeline truck, coming to market next year. The strategy also includes strengthening our leading lineup of passenger cars with the introduction this fall of an all-new Civic lineup that will include more variants than ever before, including a new five-door model. In order to fulfill this customer-focused strategy, we are making several changes to the lineup of vehicles we build in our auto plants in Ohio.