2010 Stasis Supercharged Audi R8 V10 6 Speed Manual. 12k Miles. Adv.1 Wheels. 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

Junkyard Gem: 1987 Audi 5000

The third-generation Audi 100 introduced for the 1983 model year was sold as the Audi 5000 in the United States. Sales of this high-end German sedan went pretty well ... until 60 Minutes ran a piece called "Out of Control" in late 1986, convincing many viewers that the 5000 was murderously defective. Yes, it was the original Unintended Acceleration debacle, decades before the one that cost Toyota big yen, and it slaughtered American Audi sales. Today's Junkyard Gem had the misfortune to be sitting in an Audi showroom while the echoes of the argle-bargle over the 5000 controversy still reverberated, its price dropping while potential buyers headed into the arms of nearby Mercedes-Benz and BMW dealers. Still, someone bought this car, which would have been a great Colorado winter machine with its 5-speed and Quattro all-wheel-drive system, and it ended up racking up more miles than 98 percent of cars sold in 1987. The presence of an ignition key in a junkyard car usually indicates that it was a trade-in or insurance total. A high-mile, 29-year-old Audi isn't worth much at auction, so this one ended up here. All the automatic-equipped 5000s got scary warning stickers on the shifters, among other recall-mandated changes, and Audi ended up using the European-market 100 name on these cars starting in the 1989 model year . Related Video: Featured Gallery Junked 1987 Audi 5000 Quattro View 18 Photos Auto News Audi unintended acceleration

Audi RS3 Sedan coming to America with over 400 hp?

The Mercedes-Benz CLA45 AMG is a fast, competent car. It's significantly sharper than the Audi S3, and it should be, since its starting price is around $7,000 more. Still, getting walloped by the higher-performing CLA45 AMG must irk some people at Audi, we'd think, which might explain why there are rumors that the S3's big brother is coming to town. Yes, reports are popping up from an Audi of America employee that the Audi RS3 would transition from its Euro-market Sportback body style to a more conventional four-door, and that its styling would be updated in the process. Oh, and it'll have a 400-plus-horsepower, 2.5-liter, five-cylinder turbo with which to bash the four-cylinder AMG. The report comes from Quattro World by way of CarScoops, and goes on to claim that Audi hallmarks like Quattro all-wheel drive and a seven-speed S-Tronic dual-clutch transmission will both be present. The new RS3 Sedan would arrive on US shores in 2017 as a 2018 model, with prices starting between $55,000 and $60,000. That should make Mercedes-AMG very nervous – the CLA45 may start around $50,000, but getting it past the $60,000-range is simple (your author was driving a nearly $68,000 CLA45 just last month, for example). Naturally, we have a call in with Audi of America to see if there's any credence to this report. Stay tuned for updates. Related Video: