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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

Honda recalls more than 750,000 vehicles to fix faulty seat air bag sensor

DETROIT — Honda is recalling more than three quarters of a million vehicles in the U.S. because a faulty sensor may cause the front passenger air bags to inflate when they're not supposed to. The recall covers certain Honda Pilot, Accord, Civic sedan, HR-V and Odyssey models from the 2020 through 2022 model years, as well as the 2020 Fit and Civic Coupe. Also included are the 2021 and 2022 Civic hatchback, the 2021 Civic Type R and Insight, and the 2020 and 2021 CR-V, CR-V Hybrid, Passport, Ridgeline and Accord Hybrid. Affected models from the Acura luxury brand include the 2020 and 2022 MDX, the 2020 through 2022 RDX and the 2020 and 2021 TLX. Documents posted Tuesday by the U.S. National Highway Traffic Safety Administration say that the front passenger seat weight sensor may crack and short circuit, and fail to turn off the air bag as intended. The sensors are required to disable the air bags if children or small adults are in the seats. If that doesn't happen, it increases the risk of injury. Dealers will replace the seat sensors at no cost to owners. Owners will be notified starting March 18. Honda says in documents that it has 3,834 warranty claims but no reports of injuries or deaths from the problem between June 30, 2020 and Jan. 19 of this year. Featured Gallery 2020 Honda CR-V Hybrid View 40 Photos Green Recalls Acura Honda

Honda recalling nearly 900,000 Odyssey minivans over fire fear

Honda is recalling nearly 900,000 2005 to 2010 model year Odyssey minivans due to a fault with the fuel pump that could cause them to catch fire.
According to the National Highway Traffic Safety Administration filling, if exposed to "acidic chemicals and a high temperature environment," the cover of the fuel pump strainer could crack and cause a gasoline smell in the minivan or possibly allow the fuel to leak out. Denso supplied the fuel pumps on the vehicles, and the report says that Honda first began studying the problem in October 2012 but didn't finally confirm the cause until March 6, 2014. The recall affects 886,815 Odysseys, and Honda has received 187 warranty claims related to the issue. However, there have been no fires or injures reported.
Unfortunately, Honda says that it currently doesn't have enough replacement fuel pumps to fix all of the vehicles and doesn't expect to have the parts ready until this summer. It's sending a letter to owners telling them about the recall and is sending a second notification when the pieces are at dealers. The entire notification including affected VINs can be viewed as a PDF here, and the shortened version from the NHTSA can be viewed below.