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VW is world's second-best-selling automaker, GM falls to third

Every year when we start talking about which automaker is the biggest in the world, there always seems to be at least a little bit of controversy. For 2013, Toyota handily took the top spot with 9.98 million sales, but it's the runner up spot between General Motors and Volkswagen that is starting to create a stir.
Based on our earlier report, GM's 9.71 million vehicles put it in second place ahead of VW's 9.5-million-vehicle effort. Now, The Detroit News is reporting that VW is claiming a tally of 9.73 million sales, including figures from MAN and Scania - heavy-duty truck divisions under the VW AG family. The article points out that Toyota's sales figure includes its Hino line of trucks, but these might still be considered light-duty vehicles while MAN and Scania build tractor trailers.

Toyota finds 10% MPG improvement in hybrid PCU

Keeping up its from-all-angles approach to efficiency, Toyota has found yet another way to eke out up to ten percent more precious MPGs in its hybrid vehicles, this time electronically. The automaker has announced the development of new silicon carbide (SiC) power semiconductors for use in power control units, which it will begin testing on Japanese roads within the next year. The PCU using the silicon carbide compound offers less electrical resistance, which improves efficiency when passing current between the battery and electric motor. It also loses less power after shutting off, and can operate at a higher frequency. The net power loss of the new PCU is just one-tenth of the current silicone-only version (the latter accounting for 20 percent of total electrical power loss in today's hybrids). The result, so far, is a claimed five-percent improvement in fuel economy in test vehicles, with the potential of ten percent by the time the new SiC power semiconductor comes to market. Additionally, the carbide wafers allow for smaller a power module, coil and capacitor, thus allowing the entire PCU to be 80 percent smaller (see the side-by-side comparison in the accompanying photo, which you can click to enlarge). We've got a while to wait before we start to see the carbide technology to start making a real-world impact. Toyota aims to begin using the SiC units in 2020. By then, with improvements in the company's other key efficiency factors - engine technology and aerodynamics - cars like the Prius will likely see significant gains in fuel economy. Read more in the press release below. Toyota Develops 'Diamond-like' Computer Chips to Boost Hybrid Mileage May 20, 2014 Toyota City, Japan – Toyota is using one of the hardest materials in nature after diamonds to develop a semiconductor chip it hopes will improve the fuel efficiency of its hybrids, such as the Prius, by as much at 10 percent. The company and its partners announced today that they have developed a silicon carbide (SiC) power semiconductor for use in automotive power control units. Toyota plans to begin test-driving vehicles with the technology on public roads in Japan within a year. The chips, made from carbide - one of the hardest materials in nature, theoretically have superior characteristics such as one-tenth the electrical power loss and 10 times the drive frequency. Toyota said the chips would also allow it to reduce the size of current automotive power control units by 80 percent.

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury