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Audi prepping a flex-fuel A3 for Latin America

Volkswagen's Audi division hasn't fared well from its parent company's diesel-emissions scandal, especially in the US and Europe. In South America, though, Audi is set to unveil its first vehicle of the flex-fuel variety, according to Nseavoice. Perhaps the German automaker can earn some good karma down in the Southern Hemisphere. The model is the 2016 Audi A3, which is made in Audi's Brazil factory. The engine is a 1.4-liter variety, and it will be able to run on either conventional gasoline or ethanol, or a blend of both. The decision makes sense because ethanol is plentiful in Brazil since the government has long pushed for it and there's plenty of sugar-cane feedstock to produce the stuff. Audi can use all of the positive news it can get, especially in the wake of VW's diesel-emissions scandal. As many as 11 million VW and Audi diesels may have been fitted with software that cheats emissions-testing systems. One result from the scandal's proverbial shrapnel is that the Audi A3 TDI diesel was stripped of its 2010 Green Car of the Year Award by Green Car Journal. The decision marks the first time in the award's history that a winner was stripped of the honor. VW has a long history offering flex-fuel vehicles in Brazil. In 2003, the German automaker was the first to debut a flex-fuel engine, and within two years, VW's Brazil factories were making 300,000 flex-fuel vehicles annually. Other companies have since jumped into Brazil's flex-fuel fray, including Nissan and Honda.

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

Audi design getting big overhaul?

Car and Driver has an update on the design shuffle in Ingolstadt that will ultimately bring more differentiation to Audi products. Last November, Audi design chief Wolfgang Egger spoke of the need to do "something new without breaking from tradition" in Audi design, but talk at the time centered on how the Crosslane Coupe Concept would influence the new looks of the brand's Q cars. The most recent moves appear focused on passenger cars, with designers from Volkswagen Group kin like Bentley and Seat moving to Audi, and outsiders from Alfa Romeo moving in.
While Egger decreed the end of "scalable design" to CD, last November's report said there would be more technology and "greater visual cohesion" between interior and exterior design. We still have no idea what all this means nor when we'll see visible changes in production, but at least we know there's something being done behind the scenes.