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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: Ferrock a carbon-negative cement substitute, Audi makes e-diesel

A cement alternative uses recycled materials and traps CO2 rather than producing it. Invented by David Stone at the University of Arizona, Ferrock uses recycled steel dust and glass to produce a substance stronger than conventional concrete. Cement has a high carbon footprint from the high heat needed to process the limestone. Ferrock needs no such heat, and it actually uses CO2 to harden, making it, as Stone calls it, a carbon-negative material. Learn more in the video above, see the transcript at PBS NewsHour and read more at Green Car Reports. Teslarati offers a detailed rundown of Tesla's new Valet Mode feature for the Model S. Part of the Firmware 6.2 update, Valet Mode allows the owner to disable certain performance features and block personal information when letting someone else drive the car. It limits the car's to speed to 70 miles per hour, and caps output at 80 kW. It can also disable mobile app access, Homelink, Bluetooth and wifi and the "Places" function, which stores addresses for you. The folks at Teslarati did find some shortcomings in the new feature, though. Read more at Teslarati. Audi has produced its first batch of e-diesel made from water and CO2. The fuel is made by reacting hydrogen from the water with CO2 to make long-chain hydrocarbon compounds called "blue crude." That can then be refined similarly to crude oil to make e-diesel, which is a fuel free from sulfur and aromatic hydrocarbons. That e-diesel can be used on its own, or mixed with fossil fuel diesel to power a vehicle. "In developing Audi e-diesel we are promoting another fuel based on CO2 that will allow long-distance mobility with virtually no impact on the climate," says Audi Head of Sustainable Product Development Reiner Mangold. Read more in the press release below. Fuel of the future: Research facility in Dresden produces first batch of Audi e-diesel - The verdict: Pilot plant produces high-quality diesel fuel - No need for mineral oil: e-diesel made from water, CO2 and green power - Minister Wanka: "Synthetic diesel using CO2 is a huge success" Audi has taken another big step in the development of new, CO2 neutral fuels: A pilot plant in Dresden has started production of the synthetic fuel Audi e diesel. After a commissioning phase of just four months, the research facility in Dresden started producing its first batches of high-quality diesel fuel a few days ago. To demonstrate its suitability for everyday use, Federal Minister of Education and Research Prof.

Volkswagen Group sales down 15% in pandemic year, but EV sales up 214%

FRANKFURT, Germany — German automaker Volkswagen said its global sales fell 15.2% during 2020 due to the COVID-19 pandemic but showed significant recovery toward the end of the year. The company more than tripled its sales of battery-only vehicles. Global sales for all of Volkswagen's brands amounted to 9.3 million vehicles. The fourth quarter showed a smaller decline of 5.7% and within that quarter the month of December was still further improved, showing a shortfall of only 3.2% from the same period the year before. Volkswagen said Wednesday that sales fell the most in Western Europe, by 21.6%, while China, the company's largest single market, was down 9.1% Sales of battery-only cars jumped 214% to 231,600 from 73,700 across all the company's brands. The company's electric sales leaders included the Volkswagen ID.3 compact, with 56,500, the Audi E-Tron SUV with 47,300, and the high-end Porsche Taycan with 20,000. Volkswagen said that its sales fell by less than the overall market, meaning it had slightly expanded its market share. “The COVID-19 pandemic made 2020 an extremely challenging year,” said group sales chief Christian Dahlheim. “The Volkswagen Group performed well in this environment and strengthened its market position." Volkswagen Group's brands include Volkswagen, Audi, Porsche, SEAT, and Skoda as sell as truck makers MAN and Scania.