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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

Watch Stanford's self-driving Audi hit the track

Sending a self-driving race car around a track with nobody inside seems pointless – there's no driver to enjoy the ride, and the car certainly isn't getting a thrill out of it. But the students performing research with Stanford University's Audi TTS test rig "Shelley" (not to be confused with Audi's own self-driving race cars) are getting a kick out of the numbers generated by the machine. "A race car driver can use all of a car's functionality to drive fast," says Stanford Professor Chris Gerdes. "We want to access that same functionality to make driving safer." The teams push the car to speeds over 120mph and the computers have executed lap times nearly as fast as professional drivers. However, they also spend a lot of time maneuvering at 50 to 75 mph, the speeds where accidents are most likely to happen. That way, the students can figure out how to incorporate braking, throttle and maneuvering to develop new types of automatic collision avoidance algorithms. Better technology, for instance, could have saved Google from a recent slow-speed accident where its vehicle was struck by a bus. During race days, students break into teams to perform different types of research. "Once you get to the track, things can go differently than you expect. So it's an excellent lesson of advanced planning," says Gerdes. In the latest rounds of testing, for instance, one PhD student developed emergency lane-change algorithms, while another recorded a skilled human driver in an attempt to convert his behavior into a driving algorithm. The main goal, of course, is to prepare students for something they may not have expected -- an automotive industry that is adopting self-driving technology at breakneck speeds. This article by Steve Dent originally ran on Engadget, the definitive guide to this connected life. Green Audi Technology Coupe Autonomous Vehicles Racing Vehicles Performance Videos racecar research

Audi A4 preps to go Allroad

Audi recently unveiled the lighter, larger, and sleeker 2017 A4, but the sedan is just the beginning. We know that A4 Avant and Allroad wagon versions are on the way too. Only the Allroad, however, is destined for these shores. These spy shots provide an early idea of what to expect for American buyers who prefer a longer roof and more room to haul in the back. A few key details distinguish this Allroad from the standard Avant, including the elevated ride height. Also, look carefully at the front three-quarters shot, and you can also pick out the more pronounced fender flares. Audi's designers made slight adjustments to the air dam, especially below the headlights, and there are some smaller tweaks to the rear bumper, as well. The Allroad's debut is expected to be staggered from the sedan and Avant versions, and the company obviously isn't talking about power yet. The only powertrains divulged for the 2017 A4 in the US are either a revised 2.0-liter TFSI or a 2.0-liter TDI diesel. Regardless of engine, all-wheel drive would certainly be standard to fit the more rugged version's styling. Related Video: