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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 reveals Concept Compact Sedan in Guangzhou

While our eyes were fixed on Los Angeles, BMW turned its attention to Guangzhou, China, where the German automaker unveiled the Concept Compact Sedan. The show car envisions a Bavarian rival to the likes of the Mercedes-Benz CLA-Class and Audi A3 sedan. Munich released little in the way of technical details. Instead, the Concept Compact Sedan is all about the design. Relative to its form, the show car rides on a long wheelbase, with the wheels pushed to the corners, and a greenhouse set back behind a long hood. The details are distinctly Bimmer, from the signature double-kidney grille to the Hofmeister kink in the C-pillar. The horizontal lines of the front and rear fascias are designed to maximize the vehicle's visual width, and the muscular design integrates touch-sensitive door handles below the swage line for a cleaner look. All that is rendered in liquid metal bronze paint, offset by polished aluminum brightwork and 20-inch split-spoke alloys. Geared towards the "life of a generation of youth in China," the interior is designed around the driver, but also seeks to maximize rear-seat space despite the vehicle's compact footprint. The horizontal treatment continues inside to give the impression of space, with upscale materials like three-tone Nappa leather, open-pore wood, and brushed aluminum trim with orange accents and ambient lighting. All the auxiliary surfaces are controlled by touch panels on the steering wheel, center stack, center console, and door handles. There's a panoramic roof, a head-up display for the driver, and an 8.8-inch screen in the dashboard. The sum total is a compelling preview of what a four-door addition to the 1 Series and 2 Series could look like. And to our eyes, it looks like it would be just as home on American roads as it would be in China, Europe, or anywhere else for that matter. Check it out in the high-res image gallery above and the details in the press release below. BMW Concept Compact Sedan. Sporty, elegant, exclusive – the perfect statement-maker. 20.11.2015 Munich/Guangzhou. The BMW Group has chosen Auto Guangzhou 2015, one of the largest international motor shows in China, to present a very special new development to the global public: the company's vision of a four-door sedan for the compact segment. "The BMW Concept Compact Sedan reveals the potential we see in a compact sedan," says Adrian van Hooydonk, Senior Vice President BMW Group Design.

Tailor-made BMW motorcycles presented by Petrolicious

Italy is known as a world hub of great design, whether from finally crafted suits and shoes or screaming V8s from Ferrari. In its latest video, Petrolicious transitions to two wheels to focus on a man bringing the country's sophisticated style to some quintessentially German cycles. Calling Franco Augello a motorcycle customizer is almost a slander against his work. Instead of wild paint, heavily modified frames and serious engine upgrades, Augello's creations look more like high-end models from the original factory. His bespoke BMW R65 for a close friend is a perfect example of that craftsmanship. At first glance, the bike, which he calls the Inge 09 for his buddy's nickname, looks like a vintage BMW, albeit one in great shape. Looking closer, you can start picking out little details like the minimalist touches around the fuel filler and leather-wrapped grips. There's nothing flashy about Augello's bikes. Instead, his designs look like well-restored cycles that are more concerned with tiny improvements in some places rather than absolute authenticity. They offer all of the beauty of a Ermenegildo Zegna tailored suit with the ability to fire up the engine and take a ride.