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10% of Toyota China dealers may drop due to losses

News about the auto industry in China is usually positive thanks to booming sales and an ever-increasing number of factories across the country. But in some cases, it appears that the dealers with the job of actually selling all of those vehicles are having trouble finding buyers. The result is cars piling up on lots and showrooms resisting against automakers. Japanese automakers already face a tough road to success in China, but the FAW-Toyota joint venture is especially struggling this year. According to Bloomberg, as many as 10 percent of the dealers might have to close or stop selling the brand because they just can't make money selling the vehicles on their lots. Also, 95 percent of the showrooms are reportedly losing money. The issue facing FAW-Toyota sellers is mostly a case of supply and demand. Automakers in China mandate the number and types of vehicles that dealers sell. However, the inventory from all makes is at its highest level since August 2013, according to Bloomberg. The situation leaves dealers with packed lots, and cars often require discounts to move. Making matters harder is that showrooms have annual sales targets, which are linked to bonuses. This money can account for over half of the sellers' annual profits, according to Bloomberg. The FAW-Toyota dealers are pushing back by asking Toyota for 2.2 billion yuan ($355 million) to pay for costs associated with the extra inventory. It also lowered sales targets by six percent earlier this year and has requested no increase in the numbers for 2015. News Source: BloombergImage Credit: Nelson Ching / Bloomberg via Getty Images Earnings/Financials Toyota Car Buying Car Dealers

Toyota Land Cruiser vs Lexus LX 570 Suspension Flex Test

There’s no need to explain the Toyota Land Cruiser, one of ToyotaÂ’s earliest successful products. The 2020 Toyota Land Cruiser Heritage Edition celebrates some 60 years of popularity of a vehicle that has survived the segmentÂ’s “mall wagon” phase and the rise of crossovers. Its already-sterling reputation has received an additional recent push from the rise of overlanding — an outdoor pastime that has always existed but only recently got a press agent. By comparison, the Lexus LX is a more recent development. Debuting in 1996, the LX 450 was little more than an 80-series Land Cruiser with cladding, a Lexus badge and a higher price. The amount of styling differentiation and luxury specialization has increased over the years to the point that the newest LX 570 actually seems like a completely different vehicle. In truth, the 2020 Lexus LX 570 and the 2020 Toyota Land Cruiser are both 200-series Land Cruisers under the skin. They share the same thirsty 5.7-liter V8 engine and the same frame that features a double-wishbone suspension at the front, a five-link coil spring suspension at the rear and a 112.2-inch wheelbase in the middle. The styling is strikingly different, of course, but so are the hidden details of their suspensions. The Land Cruiser employs a simple set of coil springs and shock absorbers, but with an interconnected pair of automatically disconnecting stabilizer bars called KDSS (Kinetic Dynamic Suspension System). The Lexus, on the other hand, has fixed stabilizer bars and coil springs, but its “shocks” are really hydraulic cylinders that perform height adjustments and transmit suspension movements via piping to remote electronically-adjustable damper valves mounted along the frame rails. All of the above begs a question: Which of them will go farther up my RTI ramp and, by extension, offer better suspension articulation in an authentic off-road situation? Right away, the very approach to the ramp demonstrates a huge difference and a serious issue for the LX. Its normal cruising height (there is a lower height, but this isnÂ’t that) doesnÂ’t provide enough approach clearance to attempt the ramp. The front spoiler contacts the nasty grating before the tire does. ItÂ’s a close-run thing, but from this point on, clearance gets SMALLER as the left front suspension compresses on the way up. If it's touching now, itÂ’s only going to get worse if I go forward.

Toyota temporarily idles pair of Indian plants due to labor unrest

The Detroit News reported today that Toyota will restart production at two Indian plants, following a shutdown on Monday.
Factory labor, management and police in Asia engage in the kind of violent altercations that we're not used to, having almost entirely walked away from the overtly brutal relations epitomized by the Pinkerton Detective Agency and the Flint Sit-Down Strike. In India, a plant owned by a Ford transmission supplier plant was shut down in 2009 after incidents between workers and armed men around the same time as Ssangyong workers occupied a factory in South Korea, in 2012 Suzuki Maruti workers rioted over wages around the same time upset employees beat a ceramics factory president to death in retaliation for a labor leader's killing.
Toyota is the latest to company trying to avoid that road. The Detroit Free Press reported earlier this week that it shut down two plants in India after 11 months of acrimonious wage negotiations and arbitration have gone nowhere. Toyota said the plant workers in Bidadi, near Bangalore, had deliberately stopped production at times over the past 45 days and threatened management. The workers said they wanted their wages raised by an amount already agreed to by management, but that management had reneged; news reports weren't clear on the amount, some saying nearly 10,000 rupees ($165 US) more per month, another saying 4,000 rupees ($65 US), but reports agree that Toyota has said it will only go as high as 3,050 rupees ($50 US).