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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 joins the early holiday advertising fray with three new ads

October 31 is no longer known as Halloween, or All Saints' Eve or even as that day when all children simultaneously develop huge cavities. It's now known as the day before Christmas/holiday advertising begins. Seriously, as of November 1, it seems like companies across the country and from every industry have declared open season on holiday ad campaigns. It's all premature enough that we're already feeling our inner Grinch showing, but at least some of the ads are better done than others.
Among them are new spots from BMW, which has arrived with this mini-campaign of three 30-second, Christmas-themed spots. There's a cameo from Santa Claus, who's at the helm of a sleek M6 Gran Coupe in one spot, while a 3 Series Gran Coupe slices through a slalom of Christmas trees in another. The final spot, called "Road Home", doesn't focus so much on the brand's "Ultimate Driving Machines," as it does the trip home for the holidays.
We've embedded all three videos below, so take a look and then let us know what you think of this seemingly perpetual holiday marketing calendar creep - and the BMW ads in particular - in Comments.

LAPD will get 100 BMW i3 electric cars

BMW of North America said Wednesday that it will supply the Los Angeles Police Department (LAPD) with 100 BMW i3 electric vehicles. Still, anyone hoping to see those oddly shaped vehicles in hot pursuit along Southern California's streets will have to wait. That's because the cars will be used to transport officers from one place to another, and for community outreach. They won't be used for chasing the bad guys. BMW beat out some other electric vehicles (BMW didn't mention who) in a field trial. The i3 gained points for its combination of drivetrain efficiency, connectability (for fleet management), and reliability. It also helped that the Bimmer has a short wheelbase and tight turning radius, making it easier to navigate the perpetually traffic-filled streets of Los Angeles. The i3 has a base price of $42,400, so the cars aren't exactly cheap. Still, 100 Level 2 chargers and four DC fast chargers will be supplied to the LAPD by Greenlots, and refueling costs will be low. The LAPD had been testing a couple of Tesla Model S electric sedans during the past year, though those were slated for high-pursuit use. Still, while BMW's nod doesn't necessarily mean Tesla is out, the LAPD has indicated that concerns over a possible power outage and resulting lack of ability to recharge the Teslas were probably going to stop the force from using the EVs. Los Angeles Mayor Eric Garcetti said last year that the city would eventually lease 160 electric vehicles which would be split among various city departments. Take a look at BMW's press release below. Related Video: BMW of North America Wins Bid to Supply the Los Angeles Police Department with 100 BMW i3 Electric Vehicles Los Angeles, CA – June 8, 2016... BMW of North America today announced that it has won its bid to supply the Los Angeles Police Department with 100 fully-electric BMW i3 vehicles for use in the department's transportation fleet. This announcement comes after a field trial during which a BMW i3 was evaluated alongside other EVs on the streets of Los Angeles as part of the LAPD's every day fleet. Ultimately, the BMW i3 was selected due to a combination of EPA rated best-in-class efficiency, reliability and state-of-the-art ConnectedDrive services, which can be used to support fleet management applications.