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The next-generation BMW M5 starts here

The next-generation BMW 5 Series hasn't even arrived yet, but BMW is hard at work testing the hottest version of the popular sedan – the sixth-generation M5. Now admittedly, these photos might not look much like an M5. The wheels are big, but not uncommonly so. There's no wild and crazy body kit, or hugely flared wheel arches. But what's that in the back? Are those four exhaust tips? Why yes, yes they are. And take a second look at those wheels. Notice the pizza-pan-sized brakes and huge calipers? Yet another M5 giveaway. But as our spies rightly point out, even though this does represent development work on the next M5, it's a very early prototype. That could also explain the charge port on the driver's side front fender, a feature that we've seen on other 5 Series prototypes. This does not mean the next M5 will be a plug-in hybrid, however. What the next M5 will likely be, though, is all-wheel drive. This isn't a huge surprise, considering that the Mercedes-Benz E63 AMG has already gone AWD, while the Porsche Panamera Turbo and Audi RS6/7 have always had four driven wheels. BMW has even hinted at just such a development, with former M boss Dr. Friedrich Nitschke going as far as saying AWD could arrive on the next M5. "On our cars we are thinking of all-wheel drive, but it won't come before we get the successor of the M5 and M6," Nitschke said in an October 2013 report. "That's the timing and it's not practical to react in the current life cycles." At this point, it's simply too early to guess at when or where the next-generation M5 will debut. We're expecting the next-gen 5 Series at either the 2016 Geneva Motor Show or Auto China 2016 in Beijing. The next M5 could join it, although it's possible it'd get its very own debut at a later date.

Lexus back in luxury sales race after three-year absence

Think the only challengers for the title of best-selling luxury brand hail from der Vaterland? Wrong. Lexus outsold the likes of Mercedes-Benz for the second time in 2014 last month. In fact, the Japanese luxury marque's total sales this year are a mere 12,000 units behind BMW.
Lexus was able to move 26,921 vehicles last month, a year-over-year increase of 21.1 percent, respectively. Mercedes, meanwhile, was just barely beaten, moving 26,617 units in April. The difference, though, is that Lexus has made far bigger year-over-year gains than Mercedes, which recorded a YOY increase of just 4.13 percent.
This is particularly troubling for the Germans, as it marks a return to form for Lexus that we haven't seen since before the March 2011 earthquake and tsunami that decimated Japan. Prior to that natural disaster, Lexus enjoyed nearly a dozen years at the top of the luxury heap.

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