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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 recalling select 2014 Camry and Avalon models

Toyota has announced a rather small voluntary recall, affecting 5,650 Avalon and Camry sedans from model year 2014. Both gas and hybrid models are included in the action.
This recall focuses on the left front lower suspension arm, which may have a bad bolt connecting it to the ball joint. If the car hits a big enough pothole - a real concern as we head into winter - or suffers a major impact, the two components could separate, at which point steering control would more or less vanish.
According to Toyota, there have been no crashes, injuries or deaths due to this problem. Toyota is notifying owners, who will need to report to dealers for a free replacement lower suspension arm.

The Toyota GT86 Shooting Brake Concept is real

As a two-door wagon the shooting brake exists at the unusual but captivating intersection between practicality and sportiness. This Toyota GT86 Shooting Brake Concept is no different – it's a standard GT86, with no mechanical alterations save the grafted-on wagonette roof and hatch. It's fully functional, too, having turned some laps on Toyota's test tracks. It even has the blessing of Tetsuya Tada, the father of the Toyota 86 and its Subaru BRZ and (now rebadged) Scion FR-S, who's been protective of the original GT86 concept to the point of strenuously resisting any serious power upgrades. This isn't the first shooting brake concept we've seen from the Toyobaru twins, but it's the first Toyota-badged one. Subaru brought the Cross Sport Design Concept to the 2013 Tokyo Motor Show. So how did the GT86 Shooting Brake Concept happen? The story, as Toyota tells it, involves the company's Australian design team. They created a 1/4-scale clay model of the shooting brake, and showed it to Tada when he visited in late 2014. He was so impressed, Toyota says, that he had his hand-picked craftsman in Japan bring the idea to full-scale fruition. The Australian design team, in the outdoor-loving spirit of their country, immediately thought that the longer roof would be perfect for carrying surfboards and other unwieldy sports equipment. And it would be. Meanwhile, Tada and the rest of the Toyota corporation want to tamp down expectations. It's a design study, the company says, and it's just "testing the waters." Toyota won't rule anything out, and Mazda recently surprised everyone with the MX-5 RF's unusual and attractive targa model. Maybe in a world where Mazda felt confident enough to introduce the RF, Toyota can be daring enough to bring a sporty wagon to the masses. We can hope, and maybe if we all make enough noise together Toyota will make it a reality. Related Video: Featured Gallery Toyota GT86 Shooting Brake Concept Scion Subaru Toyota Coupe Hatchback Wagon Concept Cars Performance shooting brake toyota gt86 gt86