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China’s Great Wall looking to partner with BMW to sell cars in the West

The Chinese automaker Great Wall seems to have moved on from courting Fiat Chrysler. According to Reuters, the company announced in a stock exchange filing that it's looking to collaborate with BMW's Mini brand in some way. Reuters also reports that BMW is open to discussion. We reached out to a BMW representative, and he provided us with an official statement regarding the news. The company didn't specifically say it is talking with Great Wall. What it did say is that it has had success with its current partnership with another Chinese automaker Brilliance, but also that the company is interested in expanding the Mini brand worldwide and in China. The statement says that Mini's future strategy and expansion will include "diversification of partnerships and new cooperation models." It also said that expanding in China "is only possible with a local partner." That sounds to us like BMW is pretty interested in working with Great Wall. This move comes about a month and a half after Great Wall attempted to purchase parts of Fiat Chrysler. The company was reported to be talking to FCA to purchase the Jeep brand, and it later confirmed that it was interested in that brand, a few, or the whole company. But things seemed to fall apart when Fiat Chrysler's CEO Sergio Marchionne announced it hadn't received any offers and wasn't working on any kind of deal with another company. Now it may seem a little odd that Great Wall would shift from trying to buy an SUV brand, or a company that is beginning to concentrate on crossovers and trucks, to one that specializes in compact cars. After all, they're fairly different segments. Our theory is that Great Wall isn't necessarily interested in the specific products, but more that it's looking for a gateway to Western car markets. It's not something new for the company. As far back as 2013, the company made it clear it was looking to start selling cars in America. It also started looking into a manufacturing facility in Mexico earlier this year, which would supposedly supply vehicles to both Mexico and the U.S. Now when Great Wall announced its American sales intentions, it was targeting a date of 2015. That obviously didn't happen, and it probably has something to do with the company's products. Most of the cars under the Great Wall and Haval brands bear an uncanny appearance to discontinued models from other companies that compete in the West.

On Location in Mexico with the BMW 3 Series and X1

Back in October, I traveled to Mexico with BMW to drive the new X1 crossover and the updated 3 Series sedan, specifically the new 340i. I wasn't surprised to see freshly paved roads and beautiful scenery, both of which are staples of the new-car launch. What we don't usually find are car-sized boulders blocking entire lanes of travel, goats as surprise traffic obstacles, and roads that turn to dirt with little warning. In hindsight, maybe the boulders have something to do with the fresh pavement. All that made the drive from our hotel on the edge of Copper Canyon to a little town called Batopilas more interesting than the normal A-to-B. Getting to and from the hotel was its own adventurous challenge, requiring my first and second flights in a Cessna. I managed to escape with my life and some video of the experience, and it's all edited for you above. Enjoy. BMW Crossover Luxury Videos Original Video Sedan

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