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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

2014 Audi RS5 Cabriolet [w/video]

Brash Bruiser Loses Top, Gains Weight, Still Makes Friends
Everything we said after driving the RS5 coupe still rings true, even after Audi has gone and ripped off its metal roof, replaced it with a big cloth version, and tossed us the keys. The 2014 Audi RS5 Cabriolet is another bold, big-boned airmobile to make open-top lovers swoon. There is absolutely nothing revolutionary to speak of here versus its hardtop counterpart, frankly, but tear-assing through the southern French hills as the brilliant sun warmed us is plenty good reason to talk a lot about it anyway. And hey, it beats frigid January in Detroit, where the RS5 Convertible is shortly to receive its US introduction.
One issue that could corrupt things a bit is the convertible's added weight factor. It's one thing when an Audi TT removes its top and gains 176 pounds, or when a Porsche Cayman morphs into a Boxster and gains 66 pounds; the effect on dynamics will still be acceptable. But when it comes to a huge-roof coupe like the RS5, that gain in mass becomes 400-plus pounds in cabrio form, for a grand curb weight of 4,461 pounds. As a number attached to this size of a car that's also branded with an RS badge promising raciness, we admittedly fretted. Then we drove the Audi RS5 Cabriolet to cheer up.

Audi launches 2014 TDI models with hilarious spot

Audi has unveiled a set of new television spots that seek to continue the company's proselytizing of diesel-fueled luxury cars to the American pubic. With TDI versions of the A6, A7, A8, Q5 and Q7 available for its 2014 model year range, this is a subject that's obviously near and dear to the hearts of Audi marketers.
The first commercial, The Station, makes a play on the fact that many car buyers in the US don't associate luxury cars (in this case an A8) with those green-handled pumps at the "gas" station. The second commercial, Range, is a lot more informative (albeit less fraught with screaming and slowmo), discussing just how easy it should be to find a diesel fueling station in your long-range TDI before you need to fill up.
Continue on below for a look at both new commercials, or to have Audi explain them to you in great detail, via its press release.