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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

Weekly Recap: Car-pedestrian crashes remained elevated in 2014

The death of American Horror Story: Freak Show star Ben Woolf served as a reminder this week that car crashes involving pedestrians remain a problem, and a new study issued on Thursday reinforced that the situation isn't really getting better. The Governors Highway Safety Association found a slight decline, 2.8 percent, in the number of pedestrian deaths in the first six months of 2014. Fatalities dropped from 2,141 to 2,125 compared with the same period in 2013, though the association says it's a statistical wash when factoring in undercounting. Deaths are still 15-percent higher than in 2009. "The number of deaths remains relatively high and is cause for concern," wrote Allan Williams, who compiled the report and is the former chief scientist at the Insurance Institute for Highway Safety. This is the first look at data from last year, and the National Highway Traffic Safety Administration will issue its full-year results later. The GHSA found some progress on the roadways, as 24 states and the District of Columbia reported drops in pedestrian deaths. In some states, the problem isn't even a problem at all: Nebraska and Wyoming reported one fatality apiece, though large population centers in urban areas are where most accidents occur. "This is a clearly a good news, bad news scenario," Jonathan Adkins, GHSA executive director, said in a statement. "While we're encouraged that pedestrian fatalities haven't increased over the past two years, progress has been slow." Other News & Notes Cadillac previews CT6 during Oscars Cadillac previewed its upcoming flagship sedan, the CT6, in commercials that aired Sunday during the Oscars. As expected, the creased sedan carries on Cadillac's recent design language, and the car in the commercial looks like a larger version of the CTS and ATS sedans. The CT6 will be revealed this spring at the New York Auto Show and launch late this year. It will be assembled at General Motors' Detroit-Hamtramck factory on a rear-wheel-drive chassis, and the CT6 is the first car to use Cadillac's revised alpha-numeric naming scheme. The commercials also kicked off Cadillac's "Dare Greatly" campaign, which is the first with its new advertising agency, Publicis Worldwide. Honda unexpectedly changes CEOs Honda unexpectedly announced this week that it will change CEOs. Current chief Takanobu Ito will step down in June and be replaced by company veteran Takahiro Hachigo.

New Honda Civic Natural Gas goes on sale end of November

For folks who prefer to put natural gas directly into their vehicle rather than converting it to electricity first, CNG vehicles offer a cleaner alternative to gasoline power while still using a traditional powertrain. If you're looking for a sedan that runs on CNG, your current options are pretty limited - especially in the US - and you'll almost certainly be taking a look at Honda. The 2015 Honda Civic Natural Gas goes on sale starting November 19 in 37 states. The new CNG-powered Civic sedan has a base MSRP of $26,740 (not including $790 destination fee). Opt for the Leather Navi trim, and you're still looking at a starting price below $30,000 (before destination), at $29,390. It comes equipped with a seven-inch touchscreen audio display, rearview camera and LaneWatch display as standard features. It's built at Honda's Greensburg, IN manufacturing facility. The 2015 Civic Natural Gas can only be had with the five-speed automatic transmission. Its fuel economy is rated at a gasoline gallon equivalent of 27 miles per gallon in the city/38 highway/31 combined. It's not quite as impressive as the Civic Hybrid's 44/47/45 rating, but you will be burning natural gas, which burns cleaner and can be sourced from North America, if you're into that sort of thing. Furthermore, the American Council for Energy-Efficient Economy called the Civic Natural Gas one of its top 10 greenest vehicles of 2014, and Kelley Blue Book as one of its 10 Best Green Cars. Learn more in Honda's press release below. 2015 Honda Civic Hybrid and Civic Natural Gas Provide Superior Environmental Performance With Sophistication and Value - Automotive and environmental experts recognize the Civic Hybrid and Civic Natural Gas as among the best green cars of 2014 - Available features include 7-inch touchscreen Display Audio, leather-trimmed seats, Honda LaneWatch™ and standard rearview camera - 2015 Civic Hybrid launches Nov. 5, and 2015 Civic Natural Gas goes on-sale in 37 states beginning Nov. 19 TORRANCE, Calif., Nov. 4, 2014 /PRNewswire/ -- Joining the already released 2015 Civic Sedan, Civic Coupe and Civic Si, the 2015 Civic Hybrid and Civic Natural Gas vehicles provide consumers with additional choices for even greater fuel efficiency and environmental performance from an already fuel-efficient lineup. The 2015 Civic Hybrid launches at Honda dealers nationwide on November 5 with a manufacturer's suggested retail price (MSRP) starting at $24,7352.