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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

BMW's Vision Next 100 concept celebrates past, predicts future

Forecasting 100 years out is a tough job, so we'll forgive BMW if not everything in this concept comes true in the next century. It's the first of several that will celebrate BMW's centenary this year – concepts from Mini, Rolls-Royce, and BMW Motorcycles will follow later – and aims to guess what and how we'll be driving in the distant future. Although it's no longer a question of if, we still don't know when cars will make the switch to autonomous driving. So yeah, there's a lot up in the air. What this concept promises is more of everything. What this concept promises is more of everything: more comfort, more assistance, and a more intense experience – when you want that. Plus new, lighter materials, increased customization, and of course all the connected smarts you can throw (or will be able to throw) at a set of four wheels and some seats. It starts inside with an out-there dashboard display. Going a step further from the typical head-up display, the Alive Geometry transforms everything in your periphery into a digital blanket of context stretching from the interior to some of the exterior panels. This tessellation of moving triangles is supposed to mimic a flock of birds to bring you subtly changing information about what's going on around you. BMW gives this idea the made-up term of 4D printing. BMW gives this idea the made-up term of 4D printing, as it believes that in 30 years it will be possible to rapidly prototype this flock-of-informative-seagulls design to provide function (the fourth dimension, apparently?) in addition to the physical form. We'll check back in 2046. BMW also notes that displays in current cars will give way to OLED displays and then to the windshield-as-display concept that has been promised for a while and is seen here. About the car driving itself: BMW highlights two new driving modes for the concept, Boost and Ease. Boost is for when the driver is in control, the vehicle doing what it can to heighten the experience and the driver's awareness. It can use the Alive Geometry to show the best line or warn of other cars, integrating all the current active safety tech and more. BMW believes this will allow the driver to improve instead of just going faster. We would have called this mode iStillDriveSometimes, but hey, marketing still has 100 years to come around to that one. The important idea is that the driver will still have the choice to drive.

2015 BMW 740Ld xDrive

When it first came stateside in 1978, choosing a BMW 7 Series was a simple process. With one engine and one wheelbase, you could just pick what color you want and be on your merry way. Today there are ten different models, forcing drivers to choose among four engines (plus a hybrid), rear- or all-wheel-drive, and two different wheelbase lengths. As if this isn't tricky enough, the options list has more custom choices than the Taco Bell app. Do you want standard paint and upholstery, or something from the pricey BMW Individual collection? What about the headlights: Do you want LEDs, or are the standard xenons just fine? Need a head-up display? Night vision? Adaptive dampers? The list goes on and on. After a week with a new version of BMW's flagship sedan, we've sorted out which model you actually want, although it's still up to you whether or not to order a ceramic-glazed iDrive knob. Our favorite 7 Series is now the 740Ld Xdrive, a conclusion we came to after a week at the helm of the smooth, torquey land yacht. Driving Notes When the diesel 7 first arrived at the 2014 Chicago Auto Show, its engine was already familiar to American consumers. It's the same 3.0-liter, turbodiesel inline-six found in everything from the E90 3 Series to the past two generations of X5, as well as the current 5 Series. A robust 413 pound-feet of torque lathered across the rev range, with peak twist available between 1,500 and 3,000 rpm, and the corresponding horsepower tops out at 255. 0Í–60 happens in a sedate 6.1 seconds, and for those with autobahn dreams the top speed is a modest 130 mph. While those figures aren't terribly impressive, as is often the case with diesels, the real-world application of the engine's power is far more dramatic. Even small throttle inputs produce a smooth surge of acceleration, making the 740Ld feel a lot quicker than the performance metrics might indicate. Even with the current cheap price of gas, the superior fuel efficiency of a diesel engine is worth noting, especially as this model only costs $1500 more than a 740Li xDrive. The diesel tips the scales at nearly 4,700 pounds, yet it boasts a 31-mile-per-gallon highway rating. It's rated at 23 mpg in the city, while our real-world testing saw returns in the mid-to-high 20s. Simple anecdotes about acceleration and fuel economy figures only convey a small part of the 740Ld's goodness.