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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

Recharge Wrap-up: Model X pinch sensor update, Karma plans first store

Tesla has improved Model X pinch sensor function in its latest over-the-air update. As we've seen, the pinch sensors already stop the falcon wing doors from completely shutting when they sense an obstruction. Now, though, the doors retract slightly after the sensors are triggered. While the pre-update doors didn't appear to do as much damage to human fingers as they do to various foodstuffs, it definitely looked uncomfortable, especially when one's hand is stuck in the partially closed door. Now, any pinch that does occur should be brief. See the updated sensors at work in the video above, and read more from Teslarati. Karma Automotive will move to Kawasaki's former headquarters in Irvine, California where it will also open its first store. The revival of the now defunct Fisker will sell its Revero plug-in hybrid through both dealerships and company-owned stores like the one planned for its new two-building campus. The property owner, Bixby, had planned to renovate the site, but now says Karma will make its own improvements. Bixby said it was seeking, "a progressive-minded tenant that would value the unique configuration," and appears to have found just that in Karma. Read more at Electrek, or from the OC Register. San Francisco is asking residents for help in expanding its subways. Using an online tool called Subway Vision, users can draw their own subway lines and stations that they'd like to see built and submit them to planners. Listening to the public is a useful tool for the city because, as Grahm Satterwhite, San Francisco Municipal Transportation Agency's principal planner, admits, "Transportation planners may be too close to a problem to see the solution." This approach allows the subway expansions to "reflect the vision of not just a few transportation planners, but of all San Franciscans," he says. Read more from FastCo.Exist. Toyota is continuing its commitment to Yellowstone National Park with a sustainable Youth Campus for environmental education. The automaker donated $1 million to Yellowstone for the facility, which is seeking Living Building Challenge certification. It will have onsite wastewater treatment for its locally sourced water usage, and will generate all of its electricity needs from photovoltaic panels, with excess to put back into the grid. The campus will have classrooms and residences for students and staff for its youth programs.

Toyota announces two recalls affecting 1M Corolla, Matrix and Lexus IS models

The recall bug strikes Toyota again. The automaker has issued a voluntary recall of three models that, in total, represent more than one million units. Around 752,000 2003-2004 Toyota Corolla and Matrix models are being recalled for airbag concerns, while a windshield wiper issue is causing the recall for close to 270,000 Lexus IS sedans from the 2006-2012 model years.
Completely unrelated to the small airbag-related recall issued earlier in the week, the Corolla and Matrix recall is caused by a faulty airbag control module that could potentially short circuit, which could lead to the front airbags or seat belt pretensioners deploying. The Lexus recall is due to a wiper arm nut that wasn't tightened properly, which can cause the wipers to not work when trying to clear heavy buildup such as snow.
Scroll down for a press release that includes more information, as well as details about how owners can contact the manufacturer directly.