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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

530,000 Hondas, Acuras under expanded NHTSA investigation for steering problem

Earlier this year, the National Highway Traffic Safety Administration opened an investigation into the 2022 and 2023 Honda Civic. The agency had received 145 complaints from owners stating that the car suddenly exhibited “sticky steering” and increased steering effort. WeÂ’re now learning that the investigation is expanding to include hundreds of thousands more cars. The original probe included around 238,000 Civics, but the NHTSAÂ’s latest report, issued Friday, noted that the investigation is expanding to include more than 530,000 Hondas and Acura vehicles. The 2022 and 2023 Honda Civic, 2023 Honda CR-V, and 2023 Acura Integra are affected. A drastic increase in complaints drove the expansion, as the NHTSA said it had received 1,300 reports and was aware of at least 14 crashes related to the problem. An alarming 11 of those crashes involved a roadway departure due to loss of steering control. Two of them came after the driver allegedly overcorrected, and there are three known injuries from the crashes. NHTSAÂ’s report found that the problem happened primarily in the winter months and after the car had been driven in a straight line for an extended period to warm up the vehicle and gear. Though alarming, itÂ’s worth noting that this investigation has not yet reached the recall stage. Honda acknowledged the problem, noting that it was a manufacturing issue for the steering gear unit. The manufacturing process created conditions that could cause greater internal stress, which can wear and deform the gears inside the steering component. The NHTSA also found that the factory did not guarantee consistent lubrication throughout the gear, which could be the cause of the temporary increase in steering effort. The automaker directed its dealers to replace the electronic power steering gearbox to correct a manufacturing defect, but NHTSA will continue its process, moving to an engineering analysis. If that study finds a defect, it could request a recall. Government/Legal Acura Honda Safety

Honda worker dies in forklift accident at Ohio R&D complex

Ghouse Gulam, a contract worker at the Honda R&D Americas complex in Raymond, OH, died January 4 after being hit by a forklift and suffering a skull fracture. Union County Sheriff's Office Lieutenant Michael Justice tells Autoblog that this is still an open investigation, but there are no pending charges. He said it could be about three months for the authorities to make a final determination until the coroner's report is complete. According to Automotive News, the accident happened between two buildings on the site's campus, and the forklift was carrying an empty trash bin when it struck Gulam. A media release (as a PDF) from the Union County Sheriff's Office showed that police responded at 6:01 AM. Justice would not reveal the name of the driver, but said that the person had retained legal council. The US Occupational Safety and Health Administration also opened an investigation, according to AN. In a statement (in full below), Honda expressed sympathy to Gulam's family. "Associates of Honda R&D Americas are deeply saddened and extend heartfelt sympathy and condolences to family members, friends and colleagues." On Monday, January 4, 2016, at approximately 6:00 a.m. Ghouse Gulam, a contract worker at Honda R&D Americas, Inc. in Raymond, Ohio, was injured in an accident involving a forklift driven by another contract worker. On-site emergency personnel responded immediately to the incident, followed by emergency responders from the Raymond, Ohio based Liberty Township Fire Department. Mr. Gulam was transported by Liberty Township Fire to Memorial Hospital of Union County where he later passed away. Mr. Gulam, 61, was a resident of Livonia, Michigan. Local law enforcement officials were notified of the incident. With respect for the privacy of Mr. Gulam and his family, no additional details will be provided. Associates of Honda R&D Americas are deeply saddened and extend heartfelt sympathy and condolences to family members, friends and colleagues.