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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

Audi A3 E-Tron is a look at battery-operated things to come

Audi officially unveiled the A3 Sportback E-Tron at the 2013 Geneva Motor Show. While not a production model, the plug-in hybrid gives us a good glimpse at what the German automaker has in store for future products. The five-door gets around thanks to parallel hybrid drivetrain comprised of a turbocharged 1.4-liter four-cylinder engine and a small electric motor integrated into the vehicle's six-speed dual-clutch transmission. While the four-cylinder churns up 150 horsepower and 184 pound-feet of torque, the motor contributes 100 horsepower and 242 lb-ft of twist. All told, the design allows the E-Tron to serve up its full power from just 1,750 rpm.
An 8.8-kWh lithium-ion battery sits under the floor beneath the rear seat, complete with a liquid cooling system designed to keep the pack in its optimum temperature range. The A3 Sportback E-Tron can be charged in as little as 2.5 hours with a 3.6-kW charger, yielding an EV range of up to 31 miles. The machine can also travel using the electric motor, ICE or a combination of the two for a total range of 584 miles. Check out the full press release below.

Daily Driver: 2016 Audi A7

Daily Driver videos are micro-reviews of vehicles in theAutoblog test fleet, reviewed by the staffers who drive them every day. Today's Daily Driver features the 2016 Audi A6, reviewed by Seyth Miersma. You can watch the video above or read a transcript below. Watch more Autoblog videos at /videos. Show full video transcript text Hey, all. This is Seyth with Autoblog, and I'm in the 2016 Audi A7 3.0. It's interesting, initially, I thought that I wouldn't do any kind of video review on this car because I've already done reviews on the Audi RS7 and the Audi S7. I didn't want to be overly heavy handed on the Audi A7 range, but I thought I'd at least do a quick update because it's a little bit interesting to compare and contrast all three versions of the car. This A7 has got a supercharged 3.0-liter V6 engine. It makes 333 horsepower, 325 pound-feet of torque. The MSRP starts around $69,000 when you factor in the destination charge. The one that I'm driving is right around $78,000. You look around the cabin, and you see typically nice Audi fare. It definitely feels like you're in a high-end car. Compare that to the S7, and you lose about 120 horsepower, and you add to that sticker price around $14,000. Move up to the RS7, which if you'll remember I characterized as a supercar with a hatchback, you're down way more than 200 horsepower and right around $35,000. When you take the step down especially in power you expect that the performance is not only going to lag but might be a little bit disappointing being as I was in the fancier ones first. The truth is after all these miles, this car is really fantastic especially the RS7. It really surprised me with its ability to combine just crazy good performance with great livability, never overly harsh, not a lot of impact noises. The suspension didn't beat you up. All that is obviously true of this A7 too. You don't have that top end and maybe not all of the outright ability, but it still feels very capable and a lot of fun to drive when you want to push it. You get a powerful V6, which makes the car feel pretty damn fast. Now as I'm speeding along here, I don't get the same sort of aural enjoyment from this car as I do from the V8s. Those guys just sound crazy good especially when you're really getting into it. The V6 you really got to work at to hear even, but it's satisfying, and it just feels nice and light and powerful when you're going down the road.