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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

2013 Toyota RAV4

A Nicer View Than Ever Of Middle Of The Road
When we had our first shot behind the wheel of the 2013 Toyota RAV4, the overall judgment from Managing Editor Jeremy Korzeniewski could be summed up in a sentence along the lines of, "Eh, not bad." The truth is that the compact crossover segment, now filled with not-so-compact offerings, is as cutthroat as any in the industry these days. When a heavyweight player like the RAV4 comes to market with a new generation, it is not at liberty to start from a clean sheet, lest it throw cold water on a vehicle that sells tens of thousands of units globally every month. Like De La Soul says, "Stakes is high."
If the choices in the marketplace were still largely limited to the Honda CR-V, as was the case when this market niche was green, the Toyota offering might actually seem like the exciting choice. But with new players offering better dynamic thrills (Mazda CX-5), cool turbo motors and fancy technology (Ford Escape), or even crunchy cred (Subaru Forester), the small crossover shopper is really spoiled for choice in 2013.

Toyota giving away its first hydrogen car in US

California isn't Nevada, but Golden State residents are nonetheless being given a chance to make a small bet on what may be a large prize, courtesy of Toyota. The Japanese automaker will start selling its first hydrogen fuel-cell vehicles on the West Coast late next year, and before that, Toyota would like to pick up some positive publicity by giving America's first one away to one lucky Californian. Toyota is working with the Environmental Media Association, a nonprofit that melds celebrities with sustainability-related causes, on the promotion. The upshot is that folks can go to Bidding For Good and buy a $100 ticket to be eligible for the prize. Heck, people can get a half-dozen ducats for $500. What a deal. The winner will be announced October 18 at Warner Bros. Studios. Last month, Toyota unveiled a television commercial that proclaimed 2015 as the potential turning point for fuel-cell vehicle adoption. Toyota will start selling the FCV in Japan next April for about $69,000. Toyota says the fuel cell vehicle will be able to go about 300 miles on a full tank of hydrogen and, aside from some water vapor, will not have any emissions. Read more in Toyota's press release below. How the West Was Won: Toyota Offers Chance to Be a Fuel Cell Pioneer TORRANCE, Calif., Oct. 8, 2014 – It's hard to be a trendsetter in places like Los Angeles or San Francisco, but one lucky Californian will blaze that trail when they park a new Toyota Fuel Cell Vehicle (FCV) in their garage. Toyota and the Environmental Media Association (EMA) are offering a historic opportunity to own the company's first zero-emission hydrogen vehicle when it arrives in California in late 2015. Toyota is the first major auto manufacturer to give away a fuel cell vehicle to an individual owner. As the infrastructure to support the vehicle is currently only available in the golden state, prize applicants must be California residents. Residents can purchase opportunities to win at www.biddingforgood.com for a cost of $100 per ticket or $500 for six. All monies raised will benefit programs of the EMA, a nonprofit 501(c)3 dedicated to harnessing the power of celebrity and the media to promote sustainable lifestyles. The winner will be announced at the 24th annual EMA Awards, presented by Toyota and Lexus, on Oct. 18 at Warner Bros Studios. The EMA awards honor individuals within the entertainment industry for efforts to promote environmental messages.