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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

The Honda CR-Z is on the way out, at least in Japan

The poor CR-Z, misbegotten and subsequently ignored by both customers and critics. Sales have been a trickle for years, and despite a few half-hearted attempts to kick-start interest it's clear the CR-Z lacks the goods. We've been thinking about its imminent demise for years, and it's already dead in Europe and Australia. Now, the CR-Z's lackluster run is ending in Japan. Inexplicably, that'll make the US one of the last bastions of CR-Z sales in the world. The 1.5-liter engine and electric motor make a combined 130 hp and 140 lb-ft of torque in manual-transmission trim. Yes, a manual transmission hybrid. Quite a unicorn, but don't get too excited. It won't blow your socks off, as we found out in our first drive. And the CVT model, with less power, is predictably less thrilling. Like most final edition packages, the Japan-only CR-Z Final Label gets cosmetic changes, like special edition badging, unique alloy wheels, "Final Label" logos embroidered on the seats, and equipment from the higher trim levels. The attention makes sense in Japan, where collectible special edition cars are highly sought after. It seems unlikely that Honda will bother with anything more exciting than a fire-sale promotion in the US, although we've asked the company what its plans for CR-Z in North America are and will report on what they tell us. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: Honda Japan Green Honda Coupe Hatchback Hybrid honda crz

Honda Accord Hybrid sales capacity constrained

Honda might be selling more hybrids if it could just get them to dealers. While the second-generation Insight never lived up to sales expectations and production is ending, the Japanese automaker is seeing strong demand for the Accord Hybrid here and abroad. However, there is so much global consumer desire that it can't keep them in US showrooms.
The problem limiting the sales of the Accord Hybrid is its battery pack and its popularity in Japan. "There's a waiting list for the product," said Jeff Conrad, Honda general manager, to Ward's Auto about the sedan's US popularity. While the American Accord is built in Marysville, OH, the batteries are imported from Japan, where the model is quite popular. According to Ward's data, the automaker sold 2,414 examples of the hybrid version from October 2013 to February 2014 in the US, but it shifted 6,000 units in Japan in its first three months on sale. Conrad also admitted that the constrained supply is limiting the amount of marketing the automaker can do for the hybrid.
Honda spokesperson Chris Martin told Autoblog the company is working on a solution to increase production for the near future. "We are going to resolve the battery issue," he said.