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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 confirms autonomous tech for next-gen A8

Like so many of its rivals, Audi is hard at work getting its autonomous driving technology up to speed and ready to reach the market. And now it's revealed when we can expect that time to come – or at least in what form it will arrive. In announcing the achievements of its latest RS7 Piloted Driving prototype, Audi has confirmed that the system will be offered for the first time on the next A8, the upcoming iteration of the German automaker's flagship sedan. Just as we heard this past January, the next-gen A8 will be able to drive itself around town at speeds of up to 37 miles per hour. Ingolstadt still isn't saying when we can expect the new A8 to arrive, but considering that the current model has been around since 2009 (albeit with periodic updates along the way) and that its key rivals – the Mercedes S-Class and BMW 7 Series – are both much newer models, Audi shouldn't be waiting much longer to launch its new flagship. The announcement was made as part of the reveal for "Robby," the latest version of the company's self-driving RS7 concept. The previous version, dubbed "Bobby," was based on the same model, and gave our man Jonathon Buckley over at Translogic a run for his money around Ascari a few months ago. (We'll let you watch the video below to see who fared better). But the new version is a good 882 pounds lighter, lapping the Sonoma Raceway (previously known as Infineon or Sears Point) in 2:01.01. That's in what is ostensibly still a road car, just one that's operated by a computer. The fastest lap ever recorded on the full 2.5-mile circuit, in case you were wondering, was also achieved in an Audi, but that was the R8 Le Mans Prototype that Allan McNish hustled around in a 1:20.68 qualifying lap. Related Video: 07/13/15 Sonoma/Ingolstadt Faster than a sports car driver: Audi pilots itself on US race track - Testing the new-generation Audi RS 7 piloted driving concept - Top lap times on Sonoma Raceway in California Piloted driving at Audi is approaching production readiness at race pace. On one of the world's most challenging race tracks, the Sonoma Raceway in California, the latest generation of the Audi RS 7 piloted driving concept has surpassed previous top performances once again. Audi will be offering piloted driving for the first time in the upcoming generation of the Audi A8.

2017 Audi A4 2.0T Quattro Second Drive

Never mind the impending bubble burst, it's technology's time and Audi couldn't be happier. The 2017 A4 is the latest attempt to prove beauty and brawn can't beat intelligence outright. And this is the company's best case in 20 years. For two decades, the A4 has been the backbone of Audi's lineup and key in its resurgence in the post-Unintended Acceleration days. This car has managed to build up a successful following by being an alternative to the more popular BMW 3 Series and Mercedes-Benz C-Class while being nearly as good, if not actually better, than the competition. Audi chose to stake a claim in simple clothes covering technology that was more intuitive than some, being different without being difficult. But Audi is as much a part of the establishment as its big rivals now, so it's not getting any alternative breaks anymore. It's the young tech startup that's finally a grownup – and learned to dress like one. While Jonathon Ramsey got to drive this new A4 last fall in Italy, Audi sent me to San Diego last week to drive the US-spec model that goes on sale in a couple of weeks. And, in short, if you liked the old A4, you'll really like this one. If you liked the old A4, you'll really like this one. The fact this model is known internally at Audi as "B9" is a coincidence when you think about its exterior design. The new A4 is certainly attractive, but you'll have to be a huge Audi aficionado to differentiate this over the old car at a glance. And I dare you to find someone who's actually offended by any part of the design. Some creases lower down on the side of the new car help eliminate the bloated look of the outgoing model, without adding too much fuss. Audi still has Acura beat in the "precision" race. Other new details of note are a wider grille and slimmer headlights (xenons are standard, full LEDs optional) that make the front of the A4 look lower than before, and new sequential turn signals out back that are just fun to watch in traffic. Changes are far more noticeable inside. The tall, somewhat slab-sided dash of the old car is gone and replaced by something with a more airy feel that we've seen in the TT and Q7. There's less of a black dash to get in the way of the expansive windshield and generous side glass, all unusual in today's automotive landscape. You're going to enjoy the fact you can see out of the A4.