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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

BMW recalls 200k SUVs in two campaigns

The Basics: NHTSA has announced two recall campaigns for BMW crossovers. The larger of the two affects 188,668 examples of the X3 and its slant-back counterpart, the X4. The second relates to a smaller number of 21,493 examples of the X5 and X6. Both reach back as far as 2011 and up to the current 2017 model year. The Problem: In the larger recall, the lower child-seat anchor bars may become damaged when used with European-type ISOFIX connectors. In the smaller campaign, water and debris could get into the universal joint on the front driveshaft, causing damage and potential failure. Injuries/Deaths: BMW reports that it is unaware of any injuries to have resulted from either issue, and discovered the problems through its own quality-control processes. The fix: Dealers are being instructed to weld a reinforcing bracket to the lower anchor bars in the first case, and replace the entire front driveshaft in the second. Both procedures are set to commence in July. If you own one: Expect to hear from the manufacturer in order to arrange service at your local dealership. Related Video: RECALL Subject : Possible Damage to Lower Child Seat Anchor Bars Report Receipt Date: MAY 23, 2016 NHTSA Campaign Number: 16V333000 Component(s): CHILD SEAT Potential Number of Units Affected: 188,668 Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America, LLC (BMW) is recalling certain model year 2011-2017, X3 sDrive28i, X3 xDrive28i and X3 xDrive35i, vehicles manufactured July 2, 2010 to April 14, 2016, 2015-2017 X3 xDrive28d vehicles manufactured March 10, 2014 to March 31, 2016, and 2015-2017 x4 xDrive28i, X4 xDrive35i and X4 xDriveM40i vehicles manufactured March3, 2014 to April 15, 2016. The affected vehicles have lower anchor bars for securing child restraint seats that may become damaged when using the European-ISOFIX-type, rigid-style connector, child restraint system. CONSEQUENCE: Damaged lower anchor bars may increase the child's risk of injury in the event of a crash. REMEDY: BMW will notify owners, and dealers will weld a reinforcing bracket to the lower anchor bars and the vehicle body, free of charge. The recall is expected to begin on July 12, 2016. Owners may contact BMW customer service at 1-800-525-7417. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Recharge Wrap-up: EV charging at IKEA, Tesla Model M just rendering

Despite rumors, Tesla will not be producing a "Model M" electric motorcycle. After a rendering of a Tesla motorcycle concept by a designer named Jans Slapins began circulating online, some folks mistakenly thought it was something Tesla intends to build. Slapins, though, has no relationship with Tesla, nor has he claimed to. As cool as it could be, Tesla hasn't stated an interest in producing an electric two-wheeler, and, as Green Car Reports explains, Tesla's batteries don't lend themselves to the size and shape of a motorcycle the way, say, Zero's do. Read more at Green Car Reports. Piaggio and KTM are partnering to develop an affordable electric commuter vehicle. The EU is funding the project in the hopes that commuters would choose such a vehicle over polluting, traditionally powered vehicles for their daily drives. The initial plan is to create two four-wheeled tilting vehicles for demonstration purposes. The two manufacturers will also receive support from Bosch and several universities. Read more at Visor Down. Total has opened a hydrogen filling station in Munich, Germany with both standard compressed and BMW cryo-compressed hydrogen (CCH2) technology. CCH2 involves storing the fuel on board at low temperatures and just 350 bar pressure. It allows for up to 50 percent more storage than standard 700 bar systems (and, subsequently, a greater driving range). Having CCH2 hydrogen available at a public station allows BMW to further its fuel cell research and development with real-world testing. Read more at Green Car Congress. IKEA will install free EV charging stations at all of its Canadian stores. Each of the 12 stores will offer, initially, two 60-amp chargers available on a first-come-first-served basis. Sun Country Highway will install the chargers by the end of this summer (that's right, you don't have to assemble them yourself). IKEA sees itself as a prime location for EV charging as most of its stores are located near major highways. All of Canada's IKEA stores get their energy from renewable sources. "Electric vehicle charging stations are an important step on IKEA Canada's continuing journey towards sustainability," says IKEA's sustainability manager, Brendan Seale. Read more from Sun Country Highway. Related Gallery News Source: Green Car Reports, Visor Down, Green Car Congress, Sun Country Highway Green BMW Automakers Tesla Alternative Fuels Motorcycle Electric Hydrogen Cars recharge wrapup