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China's auto sales continue to drop

The days of unending growth of carmakers in China look to be over, and some analysts are even forecasting a net drop in volume this year, The Detroit News reports. After falling numbers in June and July, the China Association of Automobile Manufacturers tallied total sales, including trucks and buses, in August to 1.7 million, down 3 percent from 2014. There were some tiny specs of good news in China, but there's no turnaround in sight. Total vehicle sales from January to August are actually still up but only 2.6 percent. Like the rest of the world, SUVs are booming with numbers up 45.6 percent from the previous year. Honda managed a very impressive 50.7 percent gain on the strength of the CR-V and Vezel (the HR-V here), according to The Detroit News. Also, the country's domestic automakers, which generally offer less expensive products, posted a 2.5 percent growth in sales. The news continues to look bad for Detroit's automakers, though. Volume from General Motors dropped 4.8 percent in August, and Ford fell 3 percent in August. Both of them have invested significant amounts there in the past years. The vehicle industry in China grew last year, but there was burgeoning evidence of weakness. At the end of 2014, dealers there pushed back against huge inventories pushed by automakers. Even before the big drops began in June, GM saw the writing on the wall and started cutting prices. BMW responded to the slump by cutting back production to deal with the changing demand. News Source: The Detroit NewsImage Credit: Mark Schiefelbein / AP Photo BMW Ford GM Honda Car Buying

Half of Chinese car buyers won't shop Japanese over hard feelings

The hard feelings between China and Japan is no real secret. Besides modern-day disputes, the two countries have had a long-running enmity that dates back to well before the atrocities of World War II. All things considered, then, it shouldn't be a shock that half of Chinese car buyers wouldn't consider a Japanese car. This survey, conducted by Bernstein Research, found that 51 percent of 40,000 Chinese consumers wouldn't even consider a Japanese car – which, again, isn't really surprising, when you consider stories like this. According to Bernstein, the most troubling thing is the location of these sentiments – smaller, growing cities where the population is going to need sets of wheels. We imagine it wouldn't be as big of an issue in traffic-clogged Shanghai or Beijing, but these small cities are going to become a major focus for automakers. "Nationalistic feelings are an impediment. [Japanese] premium brands will struggle," analyst Max Warburton wrote in a research note, according to The Wall Street Journal. Things will improve for Japanese makes, although China will remain a challenge, with Warburton writing, "the one thing that comes out most clearly is that most Chinese really want a German car. While we expect Japanese brands to continue to recover market share this year, ultimately the market will belong to the Germans." There are a few other insights from the study. According to WSJ, Japanese brands are viewed better than Korean brands, and they're seen as more comfortable than the offerings from Germany or the US, despite the fact that everyone in China apparently wants a German car. This is a tough position for the Japanese makes to be in, as there's really not a lot they can do to win favor with Chinese buyers. It will be interesting to see how this plays out, particularly as the importance of the PRC continues to increase year after year. News Source: The Wall Street Journal - sub. req.Image Credit: Kazuhiro Nogi / AFP / Getty Images Honda Mazda Nissan Toyota Car Buying

Does the 2017 Honda Ridgeline have street cred?

From a sales standpoint, the gen-one Ridgeline was an utter failure. It had a very narrow appeal, that being the suburban Harry Homeowner crowd. Traditional truckers hated it; no, make that HATED it! They hated it as much for what it was as for what it represented. It was assumed to be soft, a mommy truck; and to their eyes, it was ugly as sin. "Real" truckers would not accept the independent rear suspension, yet seemed ignorant about the fact that our military has been using IRS on severe-duty trucks for years. If IRS is good enough for the combat conditions, using it on a light-duty civilian pickup truck should be a piece of cake, no? I think there's also another issue at play here: classism. I suspect that many truckers didn't like those who were buying these trucks. Ridgeline buyers tend to be college-educated, suburban, and earn enough to have a decent if not better-than-average lifestyle. Many were schoolteachers, accountants, doctors, and lawyers – professionals. In short they weren't blue-collar, hard working, struggling-to-make-a-living truck guys. That didn't sit well with many. It was like their "space" was being invaded, maybe even their lifestyle was being threatened. I can't tell you how many derogatory comments I've read from traditional truckers over the last decade directed against Ridgeline owners. Many centered around a lack of masculinity of Ridgeline owners, or that that they were bought by people who didn't "need" a truck, that a minivan would have been a better choice. Many were owners of big diesel pickups who felt compelled to compare their heavy-duty trucks to this smaller mid-size truck. You get the picture. So here we are with the gen-two Ridgeline. Has Honda rectified its image as a truck maker? Yes and no. Yes in that the truck has shed its polarizing looks. In fact I think it's quite handsome, and will have a vastly broader appeal as such. Yes in the fact that it's been brought up to date mechanically, and the technology is vastly superior to the old model. Yes in fact that it should prove to be more economical than the old truck. Yes in the fact that it's more powerful, and that the AWD is vastly superior to what was offered before. Yes in the fact that it should function better, both as a truck and as a family vehicle. No in the fact that it will still be viewed as a "girlie truck" by many. No in the fact that there is no "macho" trim level available.