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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

First impressions of Audi's next TT interior and Virtual Cockpit [w/video]

Not content to pummel CES show goers with laser lights and self-piloting vehicles, Audi has also pulled the wraps (well, some of the wraps) off the interior of its upcoming next-gen TT. While the car itself wasn't on hand for us to check out, Audi did mock up the cockpit, complete with its all-new Virtual Cockpit central display and the latest iteration of the company's Multi Media Interface (MMI).
Virtual Display is Audi's new brand name for a completely digital reinterpretation of the instrument binnacle, by way of a 12.3-inch TFT screen. Audi tells us that there are two operable modes for Virtual Display: in the standard mode, an average-sized tachometer and speedometer flank a smaller infotainment portion in the center. Infotainment mode, meanwhile, shrinks the gauges to discreet circles and allows the navigation map, audio controls, or whichever system is being operated by the driver, to fill the remaining screen real estate.
This design, says Audi, allowed engineers to slim down the size of the center console as a whole, without reducing function for the driver. We can say that it looks very impressive as a demonstrator, but we will need some time with it in a moving vehicle before we're convinced it isn't slightly more distracting that a traditional setup.

Audi teases 700-hp Quattro Sport E-Tron concept for Frankfurt

Audi's trump card for the 2013 Frankfurt Motor Show has just been unveiled, sort of. It's called the Quattro Sport E-Tron Concept. Set to debut in a few weeks, sketches have been uncovered that show a few of the car's details, albeit in rough form. The news of a big-name Audi concept at Frankfurt has been swirling since June, when we first reported on it.
From the sketches, we see a car that has the same basic shape as the Quattro Concept from the 2010 Paris Motor Show, only with subtle tweaks and evolutions to a few features. The news isn't so much about the looks, though. It's the reports coming from Auto Zeitung and Audi enthusiast site Fourtitude.
Horsepower on the concept is expected to be in the neighborhood of 700 ponies - about 50 more than we initially thought - and will be split between a gas engine and an electric motor. Yup, that "E-Tron" name isn't just there for show. While it's not clear what the exact split will be between gas and electric power, we do know the same twin-turbo 4.0-liter V8 found in the RS6 and RS7 will be sitting under the Quattro's hood, and that the bulk of the power will likely come from here. We may not have power figures on the hybrid system, but we do know this concept is capable of running for 21.7 miles on electric power alone.