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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

2017 Audi A4 pricing drops before Detroit debut

With its spring 2016 on-sale date rapidly approaching, Audi confirms the official pricing structure for the new A4 sedan. The four-cylinder-only A4 line starts at $38,250 – a $1,400 increase over last year's model – but like the similarly priced BMW 328i and Mercedes-Benz C300, that figure climbs quickly. For one, unless you're planning on living with a front-wheel-drive Audi, you'll need to add on $2,100 for the automaker's torque-vectoring Quattro all-wheel-drive system. And unless you want the basic Premium trim, plan on tacking on $3,800 for the Premium Plus trim or $8,600 for the range-topping Prestige. What's all this mean? For that, we'll turn to the newly switched-on online configurator. The standard A4 doesn't sound like a terrible deal, offering standard bi-xenon headlights, LED taillights, three-zone climate control, leather seats, a sunroof, and a seven-inch MMI system. Moving up to the Premium Plus switches up to full LED headlights, heated front seats, a 19-speaker Bang and Olufsen 3D stereo, push-button start, and an S-line exterior treatment. Finally, the top-line Prestige's notable standard items include an 8.3-inch, nav-equipped MMI system, Audi's excellent virtual cockpit (an Autoblog Tech of the Year finalist), and a head-up display. If you're balking at the trim packs, rest easy knowing Audi has spread the options around liberally. You can get navigation and heated seats on a base model – they're $2,400 and $900, respectively – and Virtual Cockpit can be added to the mid-grade model. The base can be had with standard 18-inch wheels, while the Premium Plus allows drivers to ditch the 18s and move up to 19s. Even the top-of-the-line Prestige has a few options, including an $1,800 Driver Assistance pack (adaptive cruise, auto high beams, and lane keeping assist ) and a $1,450 Warm Weather Pack (vented front sport seats). While you can get an A4 for $38,250, you can also build one up to $55,375. Look for the 2017 Audi A4 in dealerships this spring. And head over to the online configurator to build your ideal Audi sedan now.

Five cylinders, no waiting | 2018 Audi TT RS First Drive

A five-cylinder engine is an odd duck in the modern automotive world, so why put it under the hood of a sophisticated sports car like the 2018 Audi TT RS? We're posing this question to an engineer when a loud, guttural sound interrupts the conversation. A TT RS blasts by, growling and percolating as it shoots down the front straight of the historic Circuito del Jarama in Spain. Oh, that's why. The RS treatment brings the sound and the fury to the TT, transforming a cute, sporty little car into a sports car with mettle. With 400 horsepower channeled to all four wheels, a stiffer suspension, and styling flourishes like organic LED taillights, the RS makes for a big-time upgrade over the 292-hp TT S and the mild-mannered 220-hp TT. Who wants a four-cylinder, anyway? We're considering the five-pot's potential as we mash the throttle and explode onto Jarama, an old Formula 1 course that still looks ready to host top-level racing. There's a couple of long straights and lots of curves and elevation changes. Sure, it's a bit trite to praise a sports car after a few laps in a controlled setting, but the TT RS has legit performance chops. The engine sounds just as good inside the car as it does to spectators, and it's more satisfying since we're the ones provoking the five cylinders to anger as we approach triple-digit speed. It's all real, too. There's no pumped-in sound or fake flatulent exhaust. "It's the unadulterated sound of the engine – we didn't change it," says Philipp Ade, Audi technical project manager for powertrain. Speaking trackside through an interpreter, he admits the exhaust system adds resonance but also filters out other noises to produce a clean engine note. Trust us, you'll want to tune in. The five-cylinder is not a glorified sound check. It's a new engine developed for Audi's smaller performance cars, though the TT RS is the only one confirmed for the United States. The 2.5-liter mill uses aluminum for its block and crankcase and magnesium for the oil sump. This all results in a 57-pound weight loss compared with the old five-cylinder, which was last sold in the US market in the previous-generation TT RS for the 2012-13 model years. That car was brought to the states after a Facebook campaign. This time there was no doubt Americans have an appetite for the hottest TT. A non-enthusiast will wonder: why the fuss over a five-cylinder engine? To Audi and its band of loyal followers, it's a defining element of performance.