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Mazda3 sales off to rocky start despite massive critical acclaim

Like just about every other auto publication we've seen, we loved the way the Mazda3 drove when we reviewed it a few months ago, but those glowing reviews apparently aren't helping its sales. The new compact may be falling victim to a sales war between the Toyota Corolla and Honda Civic, with the newcomer getting squeezed out by those with more established names and bigger marketing budgets.
According to Automotive News, Mazda3 sales have fallen every month since last August, and its sales are down 27 percent in the first two months of 2014. It certainly isn't helping that the entire compact segment is down five percent this year as well.
The biggest problem for the new model seems to be its price compared to rivals. Mazda is not offering the incentives that are on the hood of competitors. With the previous generation, the company offered more than $2,700 on the hood to move them out, but the current model only carries about $1,233 in markdowns, according to AN.

Honda to use English as its official language

Honda still has its headquarters in Japan and offices all over the world, but expect to hear a little less Japanese from the automaker in the coming years. A small statement in the business' latest sustainability report (available here as a PDF) announces English will become the official language for interregional communication by 2020. Honda believes that the change should foster better contact between countries as Japan becomes a less central focus for the company. As part of this shift, any documents or questions during interregional meetings, plus any other information being shared between territories, must be in English. To put some extra weight behind the mandate, the ability to speak the language is going to be a requirement for future promotions to management. In the meantime, "Honda has implemented measures in Japan that include study programs aimed at boosting English language skills," the sustainability report said. According to Automotive News, former CEO Takanobu Ito called the idea of making English an official language for company communications "stupid" five years ago. Although even under his watch, things were changing. In 2013, Honda adopted English as the main form of discourse in global meetings. The decision to lessen the focus on Japanese within Honda stems in part from changing worker demographics and major sales regions. According to Automotive News, 81 percent of the company's production comes from outside of Japan, and the country only accounts for about a third of the workforce. Also, 40 percent of global sales are from North America. Honda is quickly transitioning into a more global company in general. For example, the latest Civic Type R is assembled in the UK but has an engine from the US. Also, North America is getting the European made Civic five-door hatchback for the venerable model's next generation. English as the Official Language Setting English as the official language in inter- regional communications It is vital to develop an environment that achieves close communication between associates in six regions worldwide in order for the Honda Group to display its comprehensive capabilities while local sites are independent.

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