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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

Toyota says freezing temps pose zero problems for fuel cell vehicles

Hydrogen-powered fuel cell electric vehicles are not afraid of one thing – freezing cold weather. That's the latest from two companies that have been driving the cars in frostbite temperatures in the Northeast recently. Proton Onsite runs a fleet of 10 Toyota FCHV-adv fuel cell vehicles out of its Connecticut headquarters and discovered that the snow and three-degree temperature didn't restrict range. Mark Schiller, Proton vice president of business development, said in a statement that, "I went out to my Toyota FCHV-adv and brushed off a foot of snow before starting the car right up. No problem." While electric vehicles can have their driving range reduced in extreme temperatures (but not always), Proton Onsite hasn't seen that happen in the Polar Vortex. They're performing flawlessly in freezing temperatures even with the heaters blasting, and are continuing to hit their range of about 300 miles, Schiller said. Air Products, based on Allentown, PA, has had a similar experience. The FCHV-adv has had great performance under harsh conditions, according to Nick Mittica, commercial manager, hydrogen energy systems. Employees drove the fuel cell vehicle during one of Pennsylvania's worst winters in recent memory and, you guessed it, "No problem." Toyota says that has put its fuel cell fleet through the wringer, logging millions of miles over the last decade, to make sure performance can be delivered within extreme weather conditions. Toyota engineers spent weeks testing cold weather start up, performance and durability up in Yellowknife, Canada. Temperature can reach -30 degrees Celsius (-22 degrees Fahrenheit) at that location. On other end of the scale, Toyota was able to verify that its FCVs can handle driving through heat in Death Valley national park. We heard the same from Mercedes the other day, too. Extreme weather functionality is apparently something automakers want to make absolutely sure the public doesn't worry about. Jan. 30, 2014 – Record low temperatures have stranded many East Coast drivers, but not those driving a Toyota fuel cell hybrid vehicle. Connecticut-based Proton Onsite, which operates a fleet of ten Toyota FCHV-adv fuel cell vehicles, says that even in single digit temperatures, the FCHV-adv shows no signs of frostbite. "We had another snow storm Tuesday night and this morning the temperature was 3 degrees," says Mark Schiller, Proton vice president of business development.

NHTSA urges owners of recalled Takata airbag vehicles to take immediate action

The National Highway Traffic Safety Administration and the Department of Transportation are taking the unusual step of issuing a followup press release urging owners of certain recalled vehicles "to act immediately" to fix their cars and trucks. The problem in question concerns the repair campaigns for rupturing Takata airbag inflators issued in June and covers a long list of models from Toyota, Lexus, Honda, Acura, Mazda, BMW, Nissan, Infiniti, Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac.
While NHSTA doesn't specifically say why the recall is vital in the new release, Toyota's own explanation in its newly announced renotification campaign earlier today sheds some new light on the topic. According to the Japanese automaker, in testing, Takata found a possible link between the rupturing airbag inflators and high humidity. NHTSA is advocating that all owners pursue repairs immediately if they haven't already done so already. This is especially crucial for those drivers especially in Florida, Puerto Rico, Guam, Saipan, American Samoa, Virgin Islands and Hawaii because of the humid conditions there.
We don't need to tell you how dangerous an inadvertent airbag deployment could be - even in a stationary vehicle - but adding to the Takata issue is fears that the deployment could lead to shrapnel being sprayed into the cabin.