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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

Toyota adds 1.6m cars to Takata inflator recall list

As part of the Takata airbag inflator recall expansion announced by NHTSA earlier this month, Toyota has listed an additional 1.6 million cars that will need to have inflators or airbag assemblies replaced. This brings the total of recalled Toyota, Scion, and Lexus vehicles to 4.73 million. Other automakers will announce their expanded recall lists this week as well. This round of recalls affects some but not all vehicles with the following model names and years: 2009–2011 Toyota Corolla and Matrix 2006–2011 Toyota Yaris 2010–2011 Toyota 4Runner 2011 Toyota Sienna 2008–2011 Scion xB 2007–2011 Lexus ES 2010–2011 Lexus GX 2006–2011 Lexus IS To see if your specific vehicle falls under recall, write down your VIN and go to toyota.com/recall; you can also check any recalls, Takata or otherwise, at safercar.gov/vin. Toyota will inform owners of affected vehicles by mail. Depending on the model, either the inflator or the entire airbag assembly will have to be replaced. Due to the number of vehicles that have already been recalled, it may take some time for the necessary parts to be available. A total of 11 deaths have been attributed to the faulty Takata inflators, and federal investigators now know why the parts are prone to failure. The state of Hawaii was the first to sue the auto supplier, with more states expected to follow. The 17 other automakers are required to announce their additions resulting from the May 4 expansion this week, so expect more of the 35 to 40 million vehicles to be listed soon. Related Video: Image Credit: Reuters Recalls Lexus Scion Toyota Takata airbag recall lexus is toyota sienna toyota 4runner toyota matrix lexus es lexus gx

Toyota Yaris Hybrid-R zips in on its way to Frankfurt

Toyota has been known to make some exciting cars over the years, but its hybrids, well... let's just say a Prius appeals to a different kind of buyer. The TS030 Hybrid LMP1, on the other hand, now that's more our speed. And at the Frankfurt Motor Show next week, the Japanese industrial giant will bridge the gap with the concept car you see here. Previewed in bits and pieces along the way, Toyota has now revealed the full details and array of photos of its new Yaris Hybrid-R concept. And what the full picture reveals is a Prius C that's gone to the gym - or more appropriately, the track.
Powering this little pocket rocket is TMG's Global Racing Engine: a 1.6-liter inline-four with direct injection and a Garett turbocharger to drive 300 horsepower to the front wheels through a six-speed sequential gearbox. A pair of electric motors provide an extra 60 hp to each of the rear wheels for a combined output of 420 hp and through-the-road all-wheel drive. A third 60hp electric motor serves as traction control under acceleration and acts as a generator under braking to feed the TS030-derived super capacitor that boasts a higher power density and faster charge/discharge speed than a traditional battery. The system can provide a 40-horse boost for ten seconds in Road mode, or the full 120hp for five seconds in Track mode.
Though based on the three-door Yaris, there'd be no mistaking this for any ordinary econo-hatch. 18-inch TRD alloys with Michelin Pilot Sport Cup tires pack the wheel wells and a wider grille dominates the front fascia, while black and blue trim contrast sharply with the white bodywork. The rear pillar incorporates a quick-fill competition-spec fuel cap, LED daytime running lights illuminate the way and oversized brakes keep it all under control. The interior boasts Recaro racing buckets in black leather and blue Alcantara. There's more to digest in the press release below, but the bottom line is that if this is where Toyota is taking its hybrids, we want to climb into the driver's seat, and we're looking forward to seeing the concept in the flesh next week.