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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

Toyota enters Rally America with modified RAV4

Rally cars are typically based on production hatchbacks, but Toyota is hitting the Rally America series this year with the RAV4 you see here. Entering the 2WD-Open Class (yes, it's front-wheel drive), this specially prepared RAV4 rally machine is being revealed at the Monster Energy Supercross Championship finale this weekend in Las Vegas. It retains the stock powertrain, including a 2.5-liter inline-four with the same 176 horsepower and 172 pound-feet of torque as the small crossover you can pick up at your local Toyota dealership. Only it's been unburdened of more than 500 pounds of excess weight and fitted with a roll cage, BFGoodrich all-terrain tires and an upgraded TEIN suspension at both ends. The resulting machine will be driven by Ryan Millen, son of the legendary Rod Millen and brother the Rhys. This isn't the first time Ryan is driving off-road for Toyota either, having won the Baja 1000 last year in a Toyota Tundra TRD Pro. Toyota Flexes RAV4 Muscle with New Rally America Series Entry Renowned Off-Road Driver Ryan Millen to Drive RAV4 Rally Car in 2015 Rally America 2WD-Open Class TORRANCE, Calif. (May 6, 2015) – Toyota unveiled its RAV4 rally car at the Monster Energy Supercross Championship finale this weekend at Sam Boyd Stadium in Las Vegas. Ryan Millen, who won the 2014 Baja 1000 in a Toyota Tundra TRD Pro, will drive the RAV4 rally vehicle at various rally races including some of the 2015 Rally America 2WD-Open Class season. The muscled-up RAV4 was unveiled live between races to all in attendance and was on display in the pits throughout the event. A RAV4 competing within a professional racing series is rare. It is even rarer to see the unibody-construction, Small-Sport Utility Vehicle (SSUV) go head-to-head with Rally America's modified street cars. Toyota's entry into Rally America is a modified 2015 Toyota RAV4 LE. The vehicle sports a stock transmission and a stock 2.5-liter, four-cylinder, double-overhead cam engine that pushes 176-horsepower and 172-pounds of torque. Millen and his crew removed more than 500 pounds of stock weight, while adding a roll cage, BFGoodrich all-terrain DOT 215/75R15 tires, and upgrading to a front and rear TEIN suspension. "I've driven just about everything Toyota has to offer," said Millen. "And I've been very impressed with the RAV4's tight, compact body and smooth handling.

Welcome Audi RS6 Avant, goodbye Lincoln Continental | Autoblog Podcast #592

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder and Assistant Editor Zac Palmer. Our editors cover a lot this week, starting with the news. They geek out over the Audi RS6 Avant coming to America, and mourn the loss of the Lincoln Continental. They address rumors of the Toyota Land Cruiser's demise, and analyze spy photos of the Ford Mach E electric crossover. They also honor the memory of the godfather of spy photography, Jim Dunne. Finally, they talk about driving the BMW Z4, Ram 1500 EcoDiesel, and another diesel, the diesel-powered Mazda CX-5 Skyactiv-D. Autoblog Podcast #592 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Audi RS6 Avant headed to U.S. Lincoln Continental discontinued Rumor: Toyota Land Cruiser to be canceled Ford Mach E spied RIP spy photographer Jim Dunne Cars we're driving: 2019 BMW Z4 sDrive30i 2020 Ram 1500 EcoDiesel 2019 Mazda CX-5 Diesel Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: