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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

Nissan reveals radical BladeGlider concept for Tokyo debut

Radical reinvention of the automobile doesn't happen very often. There's a reason they refer to it as "reinventing the wheel", after all. But that's what a team of racecar designers did with the original DeltaWing concept in 2010. Originally proposed as an IndyCar racer, the project was subsequently redesigned for Le Mans. That's when Nissan got on board, supported the project for a few races, then took the design in its own direction with the ZEOD RC. And now it's taking it to the road... via the auto show.
What we have here is the BladeGlider concept, a proposal for a delta-shaped electric sportscar which Nissan will present at the Tokyo Motor Show in a couple of weeks. Designed to focus on driving pleasure, the BladeGlider is about as radical as they come. Like the DeltaWing and ZEOD RC, it's got a narrow front track and wide rear to minimize drag and optimize stability, packing a 1+2 seating arrangement to put the driver front and center like in a McLaren F1, with upward-swinging doors and underbody aerodynamics to keep it glued to the road. In-wheel motors (of unspecified output) provide the power, a lightweight lithium-ion battery (not to mention the carbon-fiber bodywork) keeps it all fearther-like, and weight distribution is heavily biased towards the rear at 30:70.
A radical concept, to be sure, but here's the kicker: Nissan wants to build it. As you can see from the press release below, the BladeGlider "is both a proposal for the future direction of Nissan electric vehicle (EV) development and an exploratory prototype for an upcoming production vehicle". While it would undoubtedly take some time to develop, much less certify for road, seeing one of these - or even better, driving one - on our favorite stretches of tarmac strikes us as a prospect worth waiting for.

Tesla about to sell 50,000th Model S

Nissan sold its 50,000th Leaf a total of two years and two months after introducing the EV to dealerships. Tesla isn't as established as Nissan, and its Model S - with its higher levels of luxury and performance - costs multiple times more than the Leaf. Consider the Tesla's starting price of $70,000-plus (and easily much more with a bigger battery and a few upgrades), and compare that to the Leaf's base MSRP of just a bit over $30,000 before its 2013 price cut. It would make sense, then, that it would take the Model S longer to hit 50,000 unit sales. But, no. The Model S could meet the 50,000 sales milestone before the end of October (in fact, it may already have done so). This is just two years and three months after it launched in late June 2012. The Model S could meet the 50,000 sales milestone before the end of October. Tesla hasn't released its sales report for the third quarter, but the Palo Alto-based automaker sold 39,128 units of the Model S through June. Previously, Tesla estimated it would have 7,800 third quarter sales (putting it at 46,928 through September), other independent estimates put Tesla at 50,000 sales in late October. The Model S may not have beat the Nissan Leaf to 50K, but it's not hard to see how this is a win for the California automaker. Arguably, this is a case where we all win. Anytime some buys an EV instead of a traditionally powered vehicle - regardless of marque - that's less energy consumed while driving, fewer emissions and an example set to others who have yet to make the switch. It's hard not to be impressed by Tesla's relative success. Furthermore, Tesla coming so close to Nissan in selling 50,000 EVs is, above all, a testament to the desirability of the Model S, despite the Leaf's clear advantage in terms of attainability.