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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

LA Design Challenge invokes biology for 2025 concepts [w/poll]

Participants in the annual LA Design Challenge always manage to come up with edgy, wacky designs for future vehicles, but with a theme of "Biomimicry and Mobility: 2025" this year's crop of cars might be the quirkiest we've ever seen. As usual, automotive designers from around the world participated in this year's competition, and all the designs will all be unveiled next week during the LA Auto Show with a winner being announced on November 21.
Chinese automakers made a strong showing with Qoros, SAIC Motor, JAC Motors (the company responsible for the Ford F-150 clone) and Changfeng all bringing interesting takes on the biology, human intelligence and sustainability theme. One of the more innovative ideas among these automakers is the Qoros Silk Road System allows autonomous vehicles to drive in packs similar to how ants travel. Speaking of ants, the SAIC Motor Mobiliant (shown above) gets its design from the shape of an ant's body, and, like the insect, it can climb building acting as a personal elevator as well. The JAC Motors design also merges vehicle and building design, while the Changfeng LaBrea inspired by the design of muscle fibers.
Other entrants include Subaru and US-based design teams for BMW, Toyota and Mazda. BMW's duo of concepts mimic plant and animal life. The LA Subways concept acts as a submersible, single-person vehicle to take advantage of the LA river, with a shape similar to an Ocean Sunfish. The Sustainable Efficient Exploratory Device (SEED) imitates the shape of a seed pod, and uses propulsion methods inspired by a shark, dragonfly and a water bug. Mazda's Auto Adapt might be the most car-like concept of the bunch, while the Subaru Suba-Roo and the Calty-designed, Toyota e-grus are the most mind-blowingly awesome.

Next BMW 6 Series, M6 to take aim at Porsche

Since BMW reintroduced the 6 Series line back in 2003, the big two-door has happily sat as the brand's de facto grand tourer. That will allegedly change come 2017, as Car is reporting that Munich will put its coupe on a diet with the so-called G15 generation, allowing the 6 to go after the likes of Porsche. All three of the current 6's body styles will be carried over for 2017, with the base 640i Coupe trimming over 500 pounds of body fat, to around 3,450 pounds. Even the droptop is getting some lipo, dropping from 4,255 to around 3,750 pounds. It's unclear how much the Gran Coupe will be lightened, as it will be the only member of the 6 Series family that's growing in size. BMW will stretch the wheelbase of its fullsize, four-door coupe, which should make it decidedly more sedan like. The weight savings come thanks to a new modular architecture that promises a "more advanced material mix." That means carbon fiber, high-strength steel and aluminum elements, and even some titanium and magnesium bits. Along with xDrive all-wheel drive, Car is promising new six- and eight-cylinder engines, with the 640i's 3.0-liter, turbocharged gas engine producing 347 horsepower while the diesel mill turns out 333. The 4.4-liter V8 of the 650i will deliver 476 ponies, while the range-topping M6's twin-turbo V8 will reach the magical 600-hp figure. Of course, we can expect to hear more about the next 6 in the coming months and years. In the meantime, though, let us know what you think of Car's positing below, in Comments.