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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

2018 Audi A5 gets a manual and S5 gets 369 lb-ft of torque

Update: A previous version of this post incorrectly stated that the A5 was the only Audi model to offer a manual transmission with the 252-horsepower inline-four. Audi will offer the same combination on the A4 in the near future. The text has been updated to reflect this. When Audi revealed the new A5 and S5 coupes, we knew the elegant lines of the European model would come to the United States. But the big question was, would the drivetrains, and in particular, the manual transmission, come along? The answer is yes. The 2018 A5, with its 252-horsepower, 273 lb-ft of torque turbocharged four-cylinder, will be offered in America with both a seven-speed dual-clutch transmission, and a classic six-speed manual. These combinations will take an A5 to 60 mph in 5.6 or 5.7 seconds, respectively. The A4 sedan will also offer the manual with the same engine soon, in case you need an extra pair of doors. The four-cylinder model is also the only A5 model with a manual, since the turbocharged V6 S5 only comes with an 8-speed automatic. To make up for a lack of shifting involvement, drivers can take advantage of the S5's readily available torque. Like the Euro-spec model, our S5 will come with 369 lb-ft of twist, and it peaks at a stunningly low 1,350 rpm. That torque, combined with the engine's 354 horsepower, launches the S5 to 60 mph in 4.4 seconds. Every type of A5 or S5 also funnels its power through a Quattro all-wheel-drive system with torque vectoring. A5 owners can also personalize how their cars ride and handle, with either a sport suspension with different sway bars, shocks, and springs, or with the comfort adaptive damping suspension. The latter uses constantly adjusting electronic shocks for improved ride. The S5 has an available sports adaptive suspension that works similarly, as well as a dynamic steering option that can change steering ratios. Capping things off is an extensive list of gadgets and safety features, some standard, such as the LED interior lighting and panoramic sunroof, and others optional, such as Audi's Virtual Cockpit LCD instrument cluster and lane keeping assist. A new feature for the A5 line is the MMI touch system, which allows drivers to write in characters with their fingers. Something Audi hasn't revealed about the A5 and S5 is the pricing and availability, but those details should come soon. Related Video: Featured Gallery 2017 Audi A5 View 27 Photos Image Credit: Audi LA Auto Show Audi Coupe Luxury Performance quattro audi s5

New Audi TT likely headed for Geneva reveal

Between the Consumer Electronics Show and the Detroit Auto Show, Audi is creating plenty of buzz lately for its upcoming third-generation TT. Fortunately, we won't have to wait too much longer to see the next Audi TT, though, as Autocar reports that the coupe will make its big debut at the Geneva Motor Show.
In speaking with Audi's technical chief Ulrich Hackenberg, the article states that the 2015 TT will first be revealed in March before going on sale later in the year. Previewed by the Allroad Shooting Brake Concept (shown above), it isn't that hard envisioning what the new TT could look like: ditch the shooting brake roofline, tall ride height and obvious conceptual design cues. Of course, if this styling is more your thing than the two-seater TT, Hackenberg left open the possibility of a TT Allroad or even a TT-based crossover.