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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

2015 Audi A6 spiffs up for Paris Motor Show duty

While the big names at the Audi booth might be dominated by the TT line, it's not the only product getting some attention from the German company. The A6, on sale in its present form since 2012, is getting its official mid-cycle refresh.
Featuring light exterior freshening, the new fascia wears a tweaked grille and slimmer, more expressive headlights. The rear end sees more substantial changes, with a freshened rear bumper that features rectangular exhaust outlets and more dramatically redone taillights.
Under hood, the 3.0-liter, supercharged V6 engine now produces 329 horsepower, while the 3.0-liter, turbodiesel V6s are available in 215- or 268-hp varieties, or in twin-turbocharged form, with 315 hp or 322 hp. The other big powertrain news surrounds the transmission. Audi has finally dropped the continuously variable transmission from the base, front-drive A6, slotting in a dual-clutch transmission in its place.

2013 Audi RS6 Avant hauls ass and then some

Holy moly. Despite the fact that Audi first released details on its 2013 RS6 Avant back in December, we're still just as smitten with it now as we were a couple months ago. And why wouldn't we be? This stunning piece of forbidden fruit combines two of our favorite things: fast Audis and useful wagons.
The meat and potatoes behind the RS6 Avant is its twin-turbocharged 4.0-liter V8, tuned to crank out 560 horsepower and 516 pound-feet of torque. Mated to an eight-speed automatic transmission, the all-wheel-drive wagon can scoot to 60 miles per hour in just 3.9 seconds, on its way to a top speed of 155 mph. Opting for the Dynamic package ups that v-max to 174 mph, and selecting the Dynamic Plus pack increases that even further to 190 mph.
This RS6 Avant certainly looks the part of an extreme ass-hauler, fitted with the usual RS-spec gaping air intakes, 21-inch wheels, sport exhaust and carbon fiber ceramic brakes. Combine all that goodness with dynamic ride control, an adaptive air suspension and torque-vectoring Quattro all-wheel drive, and we have no doubt that this thing will scare off every other station wagon in the parking lot. (Well, except maybe that Mercedes-Benz E63 AMG. Woof.)