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Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Jaguar solution to keyless start could save lives

UPDATED: An earlier version of this story indicated the Jaguar keyless start function was meant as a safety feature, when in fact, it is meant as a convenience one and will not work as described if automatic stop/start is not engaged. Today, The New York Times published an article about more than two dozen deaths related to drivers accidentally leaving their cars running, closing their garages and later succumbing to carbon monoxide that flooded their homes. The reason has been identified as "keyless start" features, or proximity entry and push-button start, where owners don't need to physically handle a key or fob to gain entry into the vehicle or start it. It is the latest, and deadliest, issue raised with this system after those related to security and simple inconvenience (for instance, leaving the car at a valet or car wash with the fob in your pocket). From my personal perspective, The New York Times had a rather harsh "evil carmakers" tone throughout the article. This is not a matter of a known faulty component, as with the GM ignition switch recall. This has as much to do with user error where people leave their car without pressing the "off" button and without noticing the engine is still running. About half of the cars in question are produced by Toyota and Lexus, brands that have offered keyless start longer than most. They are also brands with high rates of elderly owners, who seemingly made up a majority of reported deaths and injuries. One fire department in Florida even started a campaign alerting those in the area of the dangers of leaving your car running when it noticed a correlation between an increase in cars equipped with keyless start and calls related to carbon monoxide poisoning. I see several contributing issues at play, most of which go well beyond this particular issue. First is insufficient training of owners by dealers and/or owners not paying close enough attention during this training. Cars are complicated, but you should at least know how basic functions work. Second, woefully inadequate driver training in this country. Third, and with apologies to the AARP, insufficient testing of elderly drivers and/or insufficiently low standards for elderly drivers. If you don't know you have to shut the car off or cannot hear that an engine is running, perhaps you shouldn't be driving. Fourth, re-examining keyless start systems.

Car theft skyrockets thanks to rising parts prices

Cars and trucks today have achieved a high level of average quality, with safety and technology features that keep occupants safer than ever and meet consumers' high expectations. But the National Insurance Crime Bureau finds that those components come with a rising price tag, leading to expensive repair bills — and rising vehicle thefts to support a thriving black market for parts. The nonprofit NICB said it looked at the cost of replacement parts for the top 10 stolen 2016 models, with average OEM part prices pulled from a database of more than 24 million vehicle damage appraisals generated for 2016 and 2017 insurance claims. The list did not include major components like engines or transmissions, only easily-stripped components like bumpers, doors, hoods and headlights. It found that: The 2016 Toyota Camry, which had a used market value of around $15,000, had 15 commonly replaced parts that added up to almost $11,000, not including labor, with quarter panels alone costing almost $1,600 a pair and a set of alloy wheels tallying more than $1,600. The Camry was also the top stolen vehicle in 2016 at 1,113 thefts. A 2016 Nissan Altima had 14 standard parts worth more than $14,000, including a single headlamp assembly that costs just over $1,000. The Altima was the second-top stolen vehicle in 2016 at 1,063 vehicles stolen. And the 2016 GMC Sierra pickup, which was No. 7 on the 2016 top-stolen list, rang up $21,000 from 20 standard components, including an $1,100 headlamp assembly and an $1,100 rear bumper. "For the professional theft ring, stealing and stripping vehicles for parts has always been a lucrative business," Jim Schweitzer, NICB's senior vice president and chief operating officer, said in a statement. "On today's cars and trucks, the parts are often worth more than the intact vehicle and may be easier to move and sell. That's why we see so many thefts of key items like wheels and tires and tailgates ... there's always a market for them." Check out the NICB infographic below. Vehicle thefts in the U.S. rose by more than 4 percent in 2017, based on preliminary FBI data, after rising 7.6 percent in 2016, though the overall trend has been down since vehicle thefts peaked in 1991, according to the NICB. Related Video: Image Credit: National Insurance Crime Bureau Aftermarket GMC Nissan Toyota Auto Repair Insurance Ownership auto parts car values stolen car nicb national insurance crime bureau components