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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

BMW mulled ten, eight, and six-cylinder engines for i8 before going hybrid

There's little doubt that the 2015 BMW i8 is one of the most radical and groundbreaking performance cars this industry has seen in a long time. From its unique carbon-intensive construction to its 1.5-liter, three-cylinder and electric motor plug-in powertrain to its concept-car appearance, the flagbearer for BMW's new i venture challenges the very notion of what it takes to be a supercar.
Yet apparently the i8 almost didn't do that at all. Yes, it probably still would've had innovative assembly techniques, serious performance and come-hither bodywork, but according to a new report in the Telegraaf, it was very nearly a much more conventional beast, drawing its power from a V10 engine. According to the report, that line of development never got much beyond the drawing board, but BMW engineers then shifted their focus to both V8 and six-cylinder motivation, going so far as to build prototype cars. The higher cylinder-count engines were eventually dropped altogether after BMW decided to turn the i8 into a hybrid, with the six-cylinder reportedly nixed due to heat management and weight issues. In the end, of course, BMW went with the PHEV powertrain that offers a total system output of 362 horsepower and 420 pound-feet of torque - plenty of thrust for this lightweight, all-wheel drive coupe while still enabling an incredible 94 miles to the gallon on the EU cycle. Regardless of how it turned out, it's still fascinating to think that BMW didn't have a much firmer conceptual idea of what it was after when it started the i8's development.
Here at Autoblog, we're genuinely thrilled about this new generation of greener hybrid super- and hypercars, a movement spearheaded by the i8, Porsche 918 Spyder, Ferrari LaFerrari and McLaren P1. But even so, our inner-gearheads can't help but wonder what might have been had BMW pursued a more conventional i8, either in place of, or in addition to, the car they did build. What do you think? Have your say in Comments.

2013 BMW R1200GS and HP4 duel at Circuito de Almeria

The 2013 BMW HP4 is the track-ready version of the manufacturer's already mighty S1000RR, which puts the bike at the very tip top of the two-wheeled BMW food chain. The R1200GS, meanwhile, is intended to be a somewhat more utilitarian machine. Capable of conveying both rider and gear over vast distances and uncertain terrain, the big-boy GS is the Swiss army knife to the HP4's rapier. Or at least that's what we've always been led to believe. BMW recently rolled out some footage during a press launch that showed the R1200GS is actually no slouch when it comes time to sling around a road course.
The company threw both bikes on Spain's Circuito de Almeria for a little sparring match, and miraculously, the HP4 didn't just up and walk away from the R1200GS. From from it. Instead, the two stay tightly matched through most of the course before something surprising happens. We won't spoil the ending for you. Is it possible the rider on the HP4 still had some in reserve? Sure, but from the sound and look of things, neither bike was giving an inch. Check out all the video action below for yourself.