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Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury

Audi will have an autonomous car in 2020 using NVIDIA tech and AI

Audi and NVIDIA have been working together for a while, with most of the results being fancy infotainment systems like the current version of MMI and Audi's Virtual Cockpit display setup. Now the two are partnering to build autonomous vehicles that will leverage NVIDIA technology. Audi has a demonstrator now and promises a fully autonomous car for the year 2020. The tech underlying these new self-driving vehicles is NVIDIA's DRIVE computing platform. It uses the latest in artificial intelligence concepts, including neural networks, which are basically computer science's way of modeling decisionmaking after the way the human brain works. The network is able to learn and improve as it goes by making new connections. Machine learning tasks being handled by neural networks include computer vision, which can use a combination of sensors and cameras to help a computer, in this case the car, figure out what's going on in an environment to navigate through it. The companies are already demonstrating a version of DRIVE, the DRIVE PX 2, in the autonomous Audi Q7 shown above. The crossover is able to figure out its own path and can sense and drive on different types of surfaces, including pavement, grass, and dirt, plus it can navigate the cones of a simulated construction zone while reading dynamic detour signs. In 2018, Audi will expand testing of its autonomous vehicles on California public roads. The manufacturer has been permitted to test cars in the state since 2014. In announcing the expansion, Audi makes a point to mention it intends to follow applicable laws to the letter, which seems like more than a veiled reference to the trouble Uber found itself in recently when it didn't quite meet testing requirements in San Francisco. Audi has also promised Level 3 autonomy from the 2018 A8, which will feature a system called Traffic Jam Pilot to control the steering, throttle, and brakes at speeds below 35 mph. The company's previous autonomous work includes a self-driving RS7 track car named Bobby, which our own Jonathan Buckley got to race against in the Translogic episode below. Related Video:

Audi Q2 is coming soon to a city center near you

For a company that exploded into modern consciousness through its Quattro all-wheel-drive technology, delivering a crossover with just two-wheel drive could be a big leap for Audi. While some models offer all-wheel drive, Audi will deliver the entry-level versions of its all-new segment-stealing Q2 baby crossover SUV with just front-wheel drive. All Q2 models will run as front-wheel-drive cars most of the time anyway, with the all-wheel drive doled out by an electronically controlled, multi-plate differential. Fitted as standard only to the range-topping 2.0-liter petrol and diesel models, and optional on the 1.4-liter petrol and less-powerful 2.0-liter diesel models, the system only moves torque to the rear axle when the front end has run out of grip. Looking past which wheels are driven, there are more reasons to be positive than negative about the Q2. First, where the Prologue concept was the first car from new(ish) design boss Marc Lichte to wear an Audi badge, the Q2 will be his first production model. No more sausages cut to different lengths, he insists, and you can tell he means it when you look at the huge, chamfered cut they've taken out of the top of the doors at the tornado line. Designed and conceived for a younger, more urban audience than any Audi before it, the Q2 will also deliver buyers a full Mini-style level of individualization for its five-seat cabin. View 47 Photos Audi will launch the car with six different engines and the teasing promise of plug-in hybrid power "one day" in its life cycle. At 13.7 feet long, the Q2 is 7.67 inches shorter than the Q3 and far lighter, too. At just 2,657 pounds, it's light enough that Audi felt comfortable giving it a 114-horsepower, 1.0-liter, three-cylinder engine as its entry powerplant. From there, Q2 buyers can step up to a 1.4-liter, turbocharged four-cylinder engine with direct injection, variable valve timing and lift, and cylinder-on-demand technology, with 148 hp. The top petrol-powered variant will have the 2.0-liter, four-cylinder turbo motor, with both direct and indirect fuel injection and 190 hp. A 114-hp version of the 1.6-liter, four-cylinder turbodiesel provides the step-in point to the diesel range (in Europe, anyway), followed by a 148- and 190-hp versions of the 2.0-liter turbodiesel.