2001 Audi Allroad Quattro Base Wagon 4-door 2.7l on 2040-cars

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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

The 2013 Rolex 24-hour race at Daytona comes down to the last hour [spoilers, w/video]

It took 24 hours to run the race, but it was the last one was stuffed with the high action as four cars were still trying to figure out how to gain victory on the track and in the pits. Along with the obligatory crashes, spins, mechanical issues and retirements had come numerous penalties, a double-digit number of full-course yellows and two hours of fog that turned early Sunday morning into a stretch of parade laps.
The final hour would make up for the morning - drivers who might have been happy just to get on the podium had a shot at victory as the end of the race approached, and that turned into a few gambles that paid off, and at least one that didn't...

Munich prosecutors arrest Audi employee in emissions probe

Munich prosecutors arrested an Audi employee on suspicion of fraud and false advertising in connection with the carmaker's emissions scandal, the first arrest in Germany related to Volkswagen's diesel scandal. The Audi employee was arrested on Monday, at the behest of Munich prosecutors, a spokeswoman for the Munich prosecutors office said on Friday. When asked if the arrest was at the request of US authorities, the spokeswoman said it was not. She did not give the name of the person. Munich prosecutors declined to comment on whether the arrested person is a current or former Audi employee. Audi and parent Volkswagen both declined to comment. On Thursday, the US Justice Department said it charged former manager Giovanni Pamio with directing Audi employees to design software to cheat US emissions tests in thousands of Audi diesel cars. Audi is a division of Volkswagen Group. The Munich prosecutor's office said the Audi employee was brought before a judge on Tuesday and was now being held in custody. The spokeswoman declined to discuss the possibility of the detained person being extradited to another country or comment on whether Munich prosecutors were in touch with US authorities. The German arrest was part of a wider probe into fraud and false advertising and is a consequence of "findings following searches," the spokeswoman said. In March, Munich prosecutors searched the offices of Jones Day, the lawfirm Volkswagen had hired to lead an internal investigation into its emissions scandal and Audi's headquarters. Volkswagen condemned the searches at the time, and never published the full findings of its internal investigation which was being conducted by Jones Day. The raids by Munich prosecutors in March sought to shed light on who was involved in the designing and using illicit software used in 80,000 VW, Audi and Porsche cars with bigger 3.0-liter engines. No members of the Audi management board are being personally investigated as part of that probe, the spokeswoman said on Friday. In the criminal complaint released by US authorities on Thursday, US prosecutors charged that Pamio ignored or suppressed warnings by certain Audi engineers that the pollution control systems being used on the brand's diesel engines violated US clean air rules. US prosecutors said Pamio had ordered subordinates to send false information to American regulators stating that Audi's "clean diesels" did not use technology designed to cheat federal pollution tests.