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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 Accord sets the pace as Indy safety car with HPD upgrades

Honda has rolled out a new pace car to lead the pack in the IndyCar Series. But it didn't just slap some graphics and auxiliary lighting on a production model and call it a day. Honda Performance Development (HPD) was tasked with giving the Accord coupe a thorough overhaul to prepare it for the task at hand. To the 3.5-liter V6, HPD bolted a Borg-Warner turbocharger and fitted high-flow fuel injectors and custom intake, exhaust, pistons, connecting rods and intercooler as well as the crankshaft from the Acura RLX to drive output up to 400 horsepower. The transmission was beefed up as well, with a limited slip differential to help get the power down to the track surface. To keep it all in check, HPD fitted new brakes, a stiffened suspension and rolling stock. It's all been topped off with a factory aero kit, special graphics and lighting, with Sparco seats and four-point racing harnesses fitted inside. The latest in a series supplied by Honda since 2006, the Accord safety car made its debut this weekend at the Honda Indy Grand Prix of Alabama at Barber Motorsports Park. Honda Unveils 2015 Accord Safety Car Apr 24, 2015 - TORRANCE, Calif. - Will pace IndyCar Series races starting Sunday at Barber Motorsports Park - Latest in series of Honda safety cars for Indy car competition - Production 2015 Honda Accord modified by Honda R&D Americas Honda today unveiled the 2015 Honda Accord Safety Car, which will lead the Verizon IndyCar Series field to the green flag for Sunday's Honda Indy Grand Prix of Alabama at Barber Motorsports Park. The latest in a series of Honda Safety Cars utilized since 2006 for Indy car competition, the 2015 Honda Accord Safety Car is a production model featuring performance enhancements created by Honda R&D Americas, Inc., for its new role. "The 2015 Honda Accord Coupe is an ideal match for IndyCar Safety Car duties," said Jim Lee, manager of Experiential Marketing for American Honda. "Taking its already large and powerful 3.5-liter V6 engine, we asked the team at Honda R&D Americas to enhance and develop a car that is perfectly suited to lead the Verizon IndyCar Series field. I think they accomplished all that we asked, and more." The Honda R&D team started with a production Honda Accord Coupe, then added a mix of engine and chassis modifications to create a fun, fast vehicle fully capable of pacing Indy cars at both road courses and oval tracks across North America.

The 2016 Honda Civic desperately needs the cool kids

"... I am contagious, I am breaking down ..." Oh, that's the song. The 2016 Honda Civic's launch party was just so achingly cool. Honda showed off its 10th-generation Civic Sedan Wednesday at YouTube Space LA, and livestreamed it for the world to see. I was standing across from a band whose song I knew but name I didn't (turns out it was Night Riots), and near people in knit caps and tattoos cheering them on. Honda is stoked on this epic new Civic, guys. This all sounds like another cynical marketing attempt to capture the attention of people my age. The ones studies suggest hate driving and have no interest in cars, according to old people and their old muscle cars. Last year, Audi released a whole guide on how to sell the A3 to Millennials. We do love our aggressively targeted campaigns. It's like the Civic became what your Aunt Hattie replaced her '93 Achieva with. In fairness, the 2016 Civic has a hell of a lot riding on its more chiseled shoulders. The Civic long had a following among new, young buyers looking for their first new car, who then just kept buying them because they loved them so much. That sort of fell apart with the ninth-generation Civic, a car so removed from its ancestry in terms of feel, looks, and overall spirit. It's like the Honda Civic became what your Aunt Hattie replaced her '93 Achieva with. It's shown in the sales figures. In 2014, the Accord became Honda's car with the most buyers under the age of 35. The HR-V and CR-V SUVs also represent more of what buyers want these days, with rugged looks and available all-wheel drive. It's no cakewalk for the Civic anymore. Clear past the clutter of the band and the fog of the reveal, and the 2016 Civic already looks like it has the things young new-car buyers look for when they go shopping. Show-car styling, the promise of good fuel economy, Android Auto and Apple CarPlay, and lots and lots of features. The first of the new Civics Honda showed touts technology, refinement, and content more than the fun-to-drive characteristics. Enthusiasts may not find much comfort in the fact you can only get Honda's new 1.5-liter turbo on models equipped with a CVT, now that the six-speed manual has really been relegated to the base LX. But then you were probably waiting for the forthcoming Si, or next year's hatchback model, or probably the new Type-R. The Civic sedan targets the mainstream, and this time, the mainstream is the under-35 crowd.