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China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

BMW maintenance plan no longer transferrable to 2nd owner

One of the best innovations in car buying in recent years is the rise of no-cost scheduled maintenance programs. Many people feel really anxious about taking their car in for service, and these deals help mitigate that somewhat. Obviously, it's not free for automakers to implement the offers, and now BMW is altering the way its four-year, 50,000-mile Maintenance Program works for some owners. "To keep such an offer sustainable we had to make a change," said Kenn Sparks, Manager of Business Communications at BMW North America, to Autoblog via email.
The original person to buy or lease the model isn't going to see any difference, but the program is no longer transferable to a second owner, unless that person is in the owners household. Those people include includes parents, siblings, grandparents and grandchildren, in addition to someone like a spouse or children. The original owner just has to advise BMW of new user. "The program change will affect 2nd owners and for them BMW is introducing an optional full-maintenance product that covers the vehicle up to 100,000 miles," said Sparks. Scroll down to read the entire announcement.

BMW could expand 'i' lineup

Well, this isn't exactly a surprise. BMW CEO Harald Krueger (shown above) has hinted that the i3 electric car and the i8 plug-in supercar could soon be blessed with a bouncing brother, perhaps in the form of the oft-rumored i5. Specifically, Krueger told Frankfurter Allgemeine Sonntagszeitung (as reported by Automotive News) that there was certainly room in the middle of the i sub-brand's current two-model lineup "from the number point of view." The exec declined to offer any additional information. Unlike the i3 and i8, which are their own unique products independent of the rest of the BMW range, the i5 will allegedly be based on 5 Series sedan. It would also eschew the all-electric approach of the i3 in favor of a new and different version of the plug-in hybrid powertrain used in the i8. Rather than that car's turbocharged, three-cylinder gas engine, 129-horsepower electric motor, and 357 total system hp, the rumored i5 – according to our most recent report – would be significantly more powerful. There are rumblings that the new model would have anywhere from 544 hp to 640 hp, with at least two electric motors (one on each axle, making it effectively all-wheel drive). On top of the high performance, the i5 will have no issue running on EV power. According to one report, there'd be up to 78 miles of electric range, and would run purely on electricity up to 36 miles per hour. Even then, the gas engine would only join the party when under hard throttle. What do you think? Will BMW come out with a four-door PHV that could potentially outrun the current M5? Have your say in Comments. Related Video: