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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

New Honda Civic Natural Gas goes on sale end of November

For folks who prefer to put natural gas directly into their vehicle rather than converting it to electricity first, CNG vehicles offer a cleaner alternative to gasoline power while still using a traditional powertrain. If you're looking for a sedan that runs on CNG, your current options are pretty limited - especially in the US - and you'll almost certainly be taking a look at Honda. The 2015 Honda Civic Natural Gas goes on sale starting November 19 in 37 states. The new CNG-powered Civic sedan has a base MSRP of $26,740 (not including $790 destination fee). Opt for the Leather Navi trim, and you're still looking at a starting price below $30,000 (before destination), at $29,390. It comes equipped with a seven-inch touchscreen audio display, rearview camera and LaneWatch display as standard features. It's built at Honda's Greensburg, IN manufacturing facility. The 2015 Civic Natural Gas can only be had with the five-speed automatic transmission. Its fuel economy is rated at a gasoline gallon equivalent of 27 miles per gallon in the city/38 highway/31 combined. It's not quite as impressive as the Civic Hybrid's 44/47/45 rating, but you will be burning natural gas, which burns cleaner and can be sourced from North America, if you're into that sort of thing. Furthermore, the American Council for Energy-Efficient Economy called the Civic Natural Gas one of its top 10 greenest vehicles of 2014, and Kelley Blue Book as one of its 10 Best Green Cars. Learn more in Honda's press release below. 2015 Honda Civic Hybrid and Civic Natural Gas Provide Superior Environmental Performance With Sophistication and Value - Automotive and environmental experts recognize the Civic Hybrid and Civic Natural Gas as among the best green cars of 2014 - Available features include 7-inch touchscreen Display Audio, leather-trimmed seats, Honda LaneWatch™ and standard rearview camera - 2015 Civic Hybrid launches Nov. 5, and 2015 Civic Natural Gas goes on-sale in 37 states beginning Nov. 19 TORRANCE, Calif., Nov. 4, 2014 /PRNewswire/ -- Joining the already released 2015 Civic Sedan, Civic Coupe and Civic Si, the 2015 Civic Hybrid and Civic Natural Gas vehicles provide consumers with additional choices for even greater fuel efficiency and environmental performance from an already fuel-efficient lineup. The 2015 Civic Hybrid launches at Honda dealers nationwide on November 5 with a manufacturer's suggested retail price (MSRP) starting at $24,7352.

Honda Gear concept explored at Montreal Auto Show

Our friends at Autoblog Canada have just come away with a closer look at Honda's surprise Gear Concept at the Montreal Auto Show. The little three-door hatchback is arguably the automaker's first real shot at the North American city car market (the Gear is much smaller than the Fit) and may be an indication that Honda is getting serious about going after Scion on this side of the world after the CR-Z hybrid failed to deliver. Honda says the Gear Concept takes its inspiration from the fixed-gear bicycle scene, and should allow buyers an unprecedented level of customization. Designers also wanted to show that a car can be both fun and practical.
We're all for a compact stylish three door with functional room inside, but given Honda's propensity for draining the personality from its concepts on the way to production (at least the ones that don't look showroom ready), we don't hold much hope for the Gear. You can check out the full press release below for more information.