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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

First 2014 Toyota Corolla commercial dances through time

Despite the fact that the Toyota Corolla pretty much sells itself, the eleventh-generation 2014 model is getting a huge marketing push that aims to appeal to both Millennials (of course), as well as the older generations that have lived with the stalwart Japanese compact for decades. The first television advertising spot, called, "Style Never Goes Out of Style," shows that the Corolla has had a place in mainstream culture since its launch in the 1960s. We have to admit, it's pretty cool to see older models from the '60s, '70s and '80s come out to play for this commercial, especially the latter of those, as it gives us enthusiasts fond memories of the infamous AE86.
The whole web/broadcast/print/social media marketing campaign surrounding the 2014 Corolla is called "Elevate," because, according to Toyota:
Extensive market research shows that Millennials are looking to take their career to the next level and are looking to buy their first 'real' car to get them there. The design of the all-new Corolla is significantly elevated from the previous generations, creating a more dynamic and desirable image for the Corolla nameplate that will appeal to these younger buyers.

180,000 new vehicles are sitting, derailed by lack of transport trains

If you're planning on buying a new car in the next month or so, you might want to pick from what's on the lot, because there could be a long wait for new vehicles from the factory. Locomotives continue to be in short supply in North America, and that's causing major delays for automakers trying to move assembled cars.
According to The Detroit News, there are about 180,000 new vehicles waiting to be transported by rail in North America at the moment. In a normal year, it would be about 69,000. The complications have been industry-wide. Toyota, General Motors, Honda and Ford all reported experiencing some delays, and Chrysler recently had hundreds of minivans sitting on the Detroit waterfront waiting to be shipped out.
The problem is twofold for automakers. First, the fracking boom in the Bakken oil field in the Plains and Canada is monopolizing many locomotives. Second, the long, harsh winter is still causing major delays in freight train travel. The bad weather forced trains to slow down and carry less weight, which caused a backup of goods to transport. The auto companies resorted to moving some vehicles by truck, which was a less efficient but necessary option.