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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 and Porsche squabble over future product platforms

In the buildup to the 2014 24 Hours of Le Mans, Audi delivered an amusing video that worked on the playful rivalry between the German brand and its favorite frenemy, Porsche. We called it sibling rivalry, and at the time, it may have been just that. But just like sibling rivalries, it's all fun and games until someone gets hurt, and that's just what seems to be about to happen in the formerly peaceful Volkswagen Group family.
A new report from Automobile calls out the growing animosity between Porsche, who is backed up by Bentley, and Audi, whose primary ally is Lamborghini. No blows have actually been thrown, although there is a fair amount of "he said, she said" going on.
As Porsche tells it, for example, the new global fullsize SUV architecture being developed by Audi isn't up to snuff, citing size and structure issues, as well as an inability to accommodate a wide variety of engines.

Audi stretches the A8L even more for one special European buyer

An anonymous European buyer decided that the standard Audi A8L just wasn't long enough, so this wealthy person ordered a one-off A8L Extended with six doors. It's capable of seating six people in luxury. The massive sedan now measures 20.9 feet versus 17.3 feet for the standard, already large A8L. The wheelbase also grows to 13.8 feet from 10.2 feet for the regular version. You might expect the A8L Extended to have facing seats inside like a limousine, but all the passengers actually look forward. The decision probably doesn't aid in having a conversation during the drive, but it's what the buyer wanted. The third row has an entertainment display and refrigerated storage box. The second and third rows also have power adjustable seats in beige Valcona leather. It took a year for Audi's engineers to figure out how to build this beast while retaining the A8's rigidity. The builders eventually settled on adding extruded aluminum sections to the side sills and center tunnel to get the extra length. They also included extra cross braces in the roof, and a 7.9-foot glass panel to lets more light into the cabin. The powertrain consists of Audi's 3.0 TFSI with 306 horsepower and 325 pound-feet of torque and an eight-speed automatic gearbox. The A8L Extended retains the company's Quattro all-wheel drive system and can reportedly accelerate to 62 miles per hour in 7.1 seconds. That's not lightning quick but still plenty for a vehicle that weighs 5,331 pounds. The A8L Extended likely won't remain a one-off for long. According to Audi, the customer response has been quite positive, and the company has already received requests to build more. Representative unique specimen: Audi A8 L extended Premium manufacturer develops and builds 6.36-meter (20.9 ft) sedan to special customer order One-off specimen meets same standards as production model Comfortable and spacious seating for six Audi puts the customer first, however out of the ordinary their requirements may be. An example of this is the Audi A8*: at the request of a European customer the premium brand has built a first one-off version of the sedan in king-size format. Measuring 6.36 meters (20.9 ft) in length and with a wheelbase of 4.22 meters (13.8 ft), the A8 L extended* affords top-class comfort for passengers occupying all of its six seats. A concept that generates customer: Audi has further requests for the custom product already.