2012 Red X-runner! on 2040-cars

Auto blog

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

New Prius, Bentley Bentyaga, Rolls-Royce Dawn | Autoblog Minute

Bentley and Rolls-Royce introduce new luxury vehicles and Toyota revealed its latest Prius. Autoblog Senior editor Greg Migliore reports on the Weekly Recap edition of Autoblog Minute. Bentley Rolls-Royce Toyota Convertible SUV Hybrid Autoblog Minute Videos Original Video bentley bentayga rolls-royce dawn

Toyota teases mysterious RND Concept

Toyota is being very secretive about its newly teased RND Concept. The image above is all that the Japanese automaker is showing at the moment, and it's not much to go by. However, the wait to find out won't be very long, as the automaker is unveiling this very mysterious vehicle on January 26 in the UK. Making the RND even more intriguing is that this isn't just a concept pointing the way towards some nebulous future vehicle. Toyota claims that the model is production ready, and the automaker already has pricing, supply and manufacturing space prepared. We likely shouldn't expect a super luxury sedan or sports coupe, though, because Toyota says that the RND is meant for "the widest possible market." Could it possibly be some sort of inexpensive, electric vehicle like the Renault Twizy, then? With just the hind of a taillight, a slash of chrome and what might be an intake, there's not much styling work to go on here. Although, Toyota is making huge promises about the design; it claims the RND "has the potential to transform the look of every vehicle on the road." It's odd to see an automaker other than Tesla reveal a new vehicle outside of a major world auto show, which piques our interest about what Toyota is doing here. Read the company's press release below and let us know what you think the Japanese automaker is up to in Comments. THE NEW TOYOTA RND CONCEPT: SNEAK PREVIEW First details of new model released ahead of world debut next week Toyota is breaking with motor industry convention by revealing a new product outside the familiar surroundings of an international motor show. Instead its new RND Concept will make its world debut in the UK on 26th January, ready for fast-track development that should see it changing the face of motoring within weeks. The first image released today hints at how the concept's design marks a radical shift in direction for Toyota, taking the "fun-to-drive" qualities of its cars to a higher level. Although presented as a concept, Toyota acknowledges the RND will be unveiled in its production-ready form. Manufacturing and product supply have been secured and on-the-road pricing has been fixed at a level that will make the RND Concept accessible to the widest possible market. Toyota is confident, too, that the RND Concept's impact will go far beyond its own model range, having the potential to transform the look of every vehicle on the road.