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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

2015 Porsche 911 GTS starts at $114,200*

Purists often criticize Porsche for creating products like the Cayenne, Panamera and recently launched Macan, saying they dilute the true sports car spirit of the brand. It's an argument we've heard before, and one we counter with two points. First: No they don't. And second: These are Porsche's volume superstars, and the money they rake in allows the company to create dozens of versions of its well-liked sports cars. Want proof? Have a look at the gallery above, where you'll see four new versions of the 911, all with GTS badges on their rumps. This means Porsche now offers 19 versions of the 911. Nineteen.
Porsche offered a GTS version of the 911 in its previous generation, and this new one seeks to slot somewhere between the standard car and the hardcore GT3. It's available in coupe and cabriolet forms, with either rear- or all-wheel drive, starting at $114,200, *not including $995 for destination. The GTS Cabriolet comes in at $126,100, while models equipped with AWD will set you back $120,900 or $132,800 for the coupe or convertible, respectively.
All GTS models get the 430-horsepower version of the Carrera S' 3.8-liter flat-six with the Powerkit, which also includes the Sport Chrono package and the sport exhaust. If equipped with the PDK dual-clutch transmission, the 911 GTS will hit 60 miles per hour in just 3.8 seconds (or four seconds flat, if you've got the Cabriolet) - one tenth of a second quicker than the normal Carrera S. The car's top speed varies, depending on trim or transmission, but Porsche says the car will hit anywhere from 187 to 190 mph, flat out.

Porsche 911: Big in Taiwan

Porsche is continuing celebrations for the fiftieth anniversary of its iconic 911. In its latest video, it's gone to Taiwan, to interview some of the folks that have grown passionate about the rear-engined sportscar over the years.
By and large, the views expressed in this video could have come from anywhere in the world. The 911 is a great car and that doesn't change from country to country. These enthusiasts have the same passion that fans in England, the United States or Germany have for the Carrera. Take a look below at the full video, to see what the 911 enthusiasts of Taiwan love about their 911s.