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Volkswagen loses thousands of vehicles in Chinese explosion

Yesterday, a blazing, explosive fireball erupted from a port in the city of Tianjin, in China, lighting up the night sky and shattering windows with the force of 21 tons of TNT. Hundreds were injured and the death toll continues to rise, with the most recent reports claiming 50 were killed. While the human cost of this tragedy simply can't be overstated, it hasn't taken long for corporations to look into what the enormous explosion cost them. And for Volkswagen, the answer is quite a lot. According to our friends at Jalopnik, a Chinese source claims the German giant, which remains one of the PRC's most popular brands, lost thousands of vehicles. The automotive casualty sheet lists 1,065 Touaregs, 391 Beetles, 257 Tiguans, 114 Golfs, 84 Up! minicars, 39 SportVans, and 28 Magotans (a locally built version of the Passat). While those are the only vehicles listed, the Chinese source said over 2,700 vehicles were destroyed. For example, both Land Rover and Renault lost an unspecified number of Discovery SUVs and Koleos CUVs, respectively. The explosion also affected Toyota. Its research and design facility with joint-venture partner Sichuan FAW also suffered an unspecified amount of damage. You can check out the translated source article here. As Google Translate jobs go, though, this one is particularly bad, but it still offers some details of the automotive cost of this disaster.

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.

Toyota inks deal as global Olympic sponsor

Toyota has just scored a sponsorship with one of the biggest events on the planet – the Olympic Games. The company announced its position as a member of the TOP (The Olympic Partner) program, which takes effect in Japan next year and globally in 2017. The deal is slated to run through 2024. That means, if we're understanding the deal correctly, that we won't see as much official Toyota sponsorship at next year's Summer Olympics in Rio de Janeiro, while the company will enjoy a much more visible presence among American consumers at the 2018 Winter Olympics in Pyeongchang, South Korea. Unsurprisingly, the automotive giant's sponsorship will be in the mobility category, covering "vehicles, mobility services and mobile solutions," the company's press release said. Fuel cells are expected to play a big role. "We will do everything possible to fulfill our new role in The Olympic Partner program, and justify the trust the IOC has placed in us. The addition of a mobility category to the TOP Partner field is an important recognition for our entire industry," Toyota president Akio Toyoda said in a statement. "Under this Olympic flag, let us today reaffirm the power of sports to bring people together. And let us dedicate ourselves to creating a better world by promoting sports in the Olympic spirit of friendship, solidarity and fair play." "The IOC welcomes Toyota as a key partner for the provision of sustainable mobility solutions for the Olympic Games as outlined in Olympic Agenda 2020, our strategic roadmap for the future of the Olympic Movement," International Olympic Committee president Thomas Bach said. "Toyota is the world leader in its field, and this partnership signifies a strong commitment to the future of the IOC and the Olympic Movement. This is a milestone agreement in the implementation of Olympic Agenda 2020 because the focus of our cooperation is sustainable mobility, and Toyota will provide sustainable solutions for the entire Olympic Movement." Check out the official press release. Toyota Becomes IOC TOP Partner Tokyo, Japan, March 13, 2015-Toyota Motor Corporation (Toyota) today announced it has entered into a sponsorship agreement with the International Olympic Committee (IOC) to become part of The Olympic Partner (TOP) program. The agreement runs through to the end of 2024 in the mobility category, which includes vehicles, mobility services and mobility solutions.