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Will global automakers drop local JV partners if China's government says they can?

Chinese economic policies could be in for a big change, as President Xi Jinping pushes the communist country to open its domestic markets even further. That could mean big things for the auto industry, especially when it comes to the country's far-reaching joint-venture system.
According to Chinese law, foreign automakers may only maintain a fifty-fifty partnership with their domestic counterparts. But with Jinping's push for openness leading to potential free-trade deals, that policy could be relaxed (or eradicated all together) in short order. What's an automaker to do?
Well, in BMW's case, stay the course. Automotive News Europe reports that, despite the grumblings about the JV policy changes, the German manufacturer has resigned its agreement with Brilliance through 2028. This is made doubly remarkable by the fact that BMW signed the extension over three years before it was set to expire.

Next BMW M5 could go all-wheel drive

Franciscus van Meel had been a part of Audi AG management since 1996, in positions including chassis development and vehicle project director. In 2012 he was named managing director of Quattro GmbH - headquarters for personal favorites like the RS6 Avant and R8 - but he lasted just two years before being sent to lead an R&D division in Beijing. He returned from exile just ten months later but wearing a blue and white roundel, after being named to the top spot at BMW M. So it shouldn't be a surprise that when Auto Express asked van Meel about all-wheel drive on the next M5, he replied, "If we continue the power increases in the future... then probably the next generation M5 and M6 will have so much torque and power that we need to think about those solutions." It would make sense from a competitive standpoint, too - once the Mercedes-Benz E63 AMG went 4Matic, that put the two of the three cars in the segment in the AWD column. And there's no "if" about a power increase: a recent report put next generation's output at 600 hp - that's 40 hp more than today - to power a lighter car. That report said there'd be the option of four-wheel drive, but AE takes van Meel's words as a definite sign that we'll see a more complex drive arrangement under the next M5. If so, then truth be told, van Meel is reiterating the thoughts of his predecessor from two years ago. The new M boss doesn't like the phrase "four-wheel drive," however; in clarifying those "solutions" he mentioned, he said that the car would be rear-biased to remain emotional, with the front tires kicking in to aid traction. Related Video: News Source: Auto ExpressImage Credit: BMW BMW Luxury Performance Sedan bmw m

Recharge Wrap-up: BMW i3 Super Bowl ad, Tesla updates backup camera

For the fourth year in a row, fuel economy is the biggest factor in buying a new vehicle. A new report from JD Power and Associates found that, despite cheaper gas, customers still sought out fuel-sipping cars. 14 percent of survey responders cited mileage as the biggest concern when shopping for a new car, and the second most important reason to reject a vehicle. The biggest deal-breaker, though, when it comes to buying a new car is much more superficial: 30 percent of shoppers cite appearance as the main reason to avoid buying a particular vehicle. Read more at Automotive News, or in the press release below. Tesla's 6.1 Firmware update for the Model S makes maneuvering the car in reverse a bit easier. The update includes reverse guiding lines for the rear-view camera when backing up. Combined with the parking sensors, the new lines in the display make it easier to place the car into parking spots by showing where the car will be positioned based on the angle of the steering wheel. Two white lines curve with the steering to show where the car is going. Check it out in the video below or read more at Teslarati. BMW will air a new ad for the i3 during Super Bowl XLIX. The 60-second commercial will play during the first quarter of the game on Sunday, February 1. BMW didn't give the whole idea behind the TV spot away, but did hint at the concept behind the ad. "Big ideas like the BMW i3 take a little getting used to, and the creative idea surrounding our spot will play on this analogy," says BMW's Trudy Hardy. Despite Cheap Gas, Fuel Efficiency Still a Primary Concern Exterior Look/Design Top Reason Buyers Don't Even Consider a Vehicle WESTLAKE VILLAGE, Calif.: 14 January 2015 - Despite gas prices falling to their lowest levels since 2010, fuel economy-for a fourth consecutive year-remains the most influential factor among the majority of new-vehicle buyers in determining which vehicle they select, according to the J.D. Power 2015 U.S. Avoider StudySM released today. The study, now in its 12th year, examines the reasons consumers purchase, reject or do not consider-or avoid-particular models when shopping for a new vehicle. According to the study, 14 percent of new-vehicle owners cite gas mileage as the most influential reason for selecting the vehicle they ultimately purchased. At the segment level, gas mileage is the primary purchase reason among buyers of compact, small and midsize cars and compact MPVs.