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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

Alpha 10 Audi R8 by AMS Beauty-Roll

For those of you paying attention, we've really ramped up the old Autoblog video game these days. Our new series Car Club USA joins Translogic and The List, and there are more Daily Drivers and Short Cuts than ever. But sometimes, all you care about is the car. The Autoblog Beauty-Roll video series has one goal: bring you glossy video images of cars, and nothing but. We're collecting moving pictures of all the cars we test, inside and out. Each episode comes with a hit of engine sound – start-up and with a few revs – to round out the package. Set your resolution to max, kick it into full-screen, turn up the sound, and enjoy today's subject, the Alpha 10 Audi R8 by AMS. Oh, and if you'd like more Beauty-Roll, click here to see the back catalog.

Audi's CES interior concept foretells a screen-filled A8

Audi is once again offering a glimpse into its future interior-design plans at CES. The new setup is called Virtual Dashboard and is both an extension and an evolution of Virtual Cockpit, which made its debut in Vegas two years ago before winding up in the TT. While this interior mockup is pulled from Audi's recent E-Tron Quattro concept, our man on the ground at CES was told this is "very close" to the interior we'll see in the next Audi A8, which is due in a year or so. Virtual Dashboard is screen-heavy in stark contrast to Virtual Cockpit's single, driver-focussed gauge display. It keeps that and adds a pair of screens to the mix, all of them using OLED (organic light-emitting diode) tech. The central screen measures 14.1 inches diagonally and is curved with a rhomboid border; its AMOLED (active matrix organic light-emitting diode) allows for the irregular shape and curvature. Below that sits a more normal, rectangular screen; both are very well integrated into their surroundings. And as in many current Audis, the shift lever acts as a comfy wrist rest. On the top screen, drivers and passengers get what Audi calls classic information – navigation, audio, settings. The lower screen provides big favorite buttons and also houses on-screen buttons for the climate control. When it's called for, the lower display turns into an input tablet for handwritten entries, an evolution of the small separate touchpad offered in current Audis. The displays use swiping and other gestures familiar to smartphone users, which allow them to interact with each other, for example when swiping to accept a call and move its info to the gauge display. The screens provide haptic feedback that goes beyond what automakers are offering today. Our man at CES says button presses only result from deliberate presses of the screen, meaning you can rest a finger over your selection and it won't activate until you press, just like a real button. Novel. The steering-wheel controls also provide haptic feedback and have been simplified compared to what's on Virtual Cockpit today. When it hits production in the A8 and other vehicles, all of this will be built on the next generation of Audi's infotainment platform, which it's creatively calling MIB2+. It offers more computing power than the current MIB2 system, allowing it to run more displays and offer more connected services over an LTE connection.