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AMS Alpha 10 Audi R8 First Drive [w/video]

Horsepower is a relative number. Compared to the 1,500 hp in the last AMS car we drove, the face-melting Alpha 12 GT-R, 900 seems pretty tame. But by any rational standard that's a crazy amount of power, the kind that's hard to grasp in practical terms. When AMS Performance called us and offered a test in the 921-hp Alpha 10 Audi R8, saying yes was easy. Figuring out how to demonstrate that much thrust was the tricky part. Our solution was to head to the drag strip. What better way to show off the wicked alterations wrought by AMS president Martin Musial and his team than a video showing the car do the Star Trek warp speed effect through the quarter mile? AMS has a history of building quick drag strip cars, like the aforementioned GT-R and a series of Mitsubishi Lancer Evolutions. Vice president Arne Toman even owns the world's fastest Hearse. We should have taken the broken scoreboard at Milan Dragway as an omen. Wiped out by a lightning strike, both displays have since been replaced. Before our test both Musial and Toman explained that the Alpha 10 R8 wasn't built with drag racing in mind. But, being good sports, both met us at the track in southeast Michigan, unloaded the R8 from its trailer, and let us run through the timing lights over and over. The best time that day was 11.0 seconds at 136 mph, uncorrected. One of the many amazing things about the Alpha 10 Audi R8 is that it's essentially a bolt-on system. That's fast, but not what you'd expect for 786 horsepower at the wheels. And, honestly, we're not disappointed. First, a 4,200-rpm rev limiter was set too low to launch on the sticky drag strip. Put another way, that drag strip time is almost a street start. For what it's worth, Musial and Toman didn't seem concerned about the numbers. Like we said, they present the Alpha 10 as an all-around performance car, and we believe them. Now, if you go to AMS with the drag strip in mind, Musial and his staff can program whatever launch rpm you desire. (You're on your own for clutch replacements.) A reflash of the engine controller is part of the Alpha 10 package. Drop off a stock R8 V10 at AMS (or any of its 70-plus dealers), and they'll pull out the suitcase-shaped muffler that sits behind the engine. A pair of turbochargers, small mufflers, and two heat exchangers attach to the stock exhaust system mounts, while a giant water-to-air intercooler sits on top of the engine.

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

Trump calls Germans 'very bad,' vows to stop their car sales in US

TAORMINA, Italy -Talks between President Trump and other leaders of the world's rich nations at the G7 summit on Friday were expected to be "robust" and "challenging" after he had lambasted NATO allies and condemned Germans as "very bad" for their trade policies. Trump's confrontational remarks in Brussels, on the eve of the two-day summit in the Mediterranean resort town of Taormina, cast a pall over a meeting at which America's partners had hoped to coax him into softening his stances on trade and climate change. According to German media reports, Trump condemned Germany as "very bad" for its trade policies in a meeting with European Commission President Jean-Claude Juncker, signaling he might take steps to limit sales of German cars in the United States. "The Germans are bad, very bad," he reportedly told Juncker. "Look at the millions of cars that they're selling in the USA. Horrible. We're gonna stop that." White House economic adviser Gary Cohn on Friday confirmed the reports. "He said they're very bad on trade, but he doesn't have a problem with Germany." Cohn said Trump had pointed out during the meeting that his father had German roots in order to underscore the message that he had nothing against the German people. Trump's spokesman Sean Spicer said Trump had "tremendous respect" for Germany and had only complained about unfair trade practices in the meeting. Juncker called the reports in Spiegel Online and Sueddeutsche Zeitung exaggerated. The reports translated "bad" with the German word "boese," which can also mean "evil," leading to confusion when English-language media translated the German reports back into English. "The record has to be set straight," Juncker said, noting that the translation issue had exaggerated the seriousness of what Trump had said. "It's not true that the president took an aggressive approach when it came to the German trade surplus." "He said, like others have, that (the United States) has a problem with the German surplus. So he was not aggressive at all," Juncker added. In January, Trump threatened to slap a 35 percent tax on German auto imports. "If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax," he said. "I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 percent tax, then you can forget that." Last year, the U.S.