Clean Carfax! Low Miles! Well Maintained & Kept! on 2040-cars

Auto blog

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

Volkswagen Group previews its wares on eve of Geneva show

The Volkswagen Group is comprised of 11 brands producing 240 vehicles across 49 factories throughout the world. So the best way to show off the range of the VW family is to cram a few thousand journalists and VIPs into a massive makeshift stand to outline the Group's goals, what's in the pipeline and what you'll be able to buy later this year.
To that end, VW pulled out all the stops on the eve of the 2012 Geneva Motor Show, bringing along 10 vehicles from across the range. We'll be delving into the details of each over the next two days of show coverage, but before that happens, you can read all about what we saw tonight from the cheap seats after the break.

Dieselgate defeats Audi's Le Mans racing dynasty

Referring to what the automotive press has dubbed "Dieselgate", Audi's Chairman of the Board of Management Rupert Stadler announced that Audi is pulling out of the FIA World Endurance Championship by the end of the 2016 season. This means Audi will no longer compete in the 24 Hours of Le Mans. However, that doesn't mean Audi is through with competing on the world stage. Instead of fossil-fuel-powered prototype racing, Audi will now "focus on the things that will keep (it) competitive in the years ahead", namely Formula E. Having worked together previously with Audi tuner ABT and component manufacturer Schaeffler in Formula E, the company is now turning Team ABT Schaeffler Audi Sport into a fully factory-backed outfit. Audi's DTM efforts with the RS 5 DTM will remain untouched for the time being, and the company hasn't made a decision yet as to whether its World Rallycross Championship with the Audi S1 EKS RX quattro will continue. Audi has competed in Le Mans prototype racing for 18 years, during which it secured 13 Le Mans wins. Out of 185 races contested by Audi's LMP cars, they racked up an impressive 106 wins. Audi's victory in 2006 was the first with a TDI engine, and the first hybrid-engine win was claimed in 2012. From 2000 to 2008, Audi won nine consecutive American Le Mans Series titles. Related Video: News Source: AudiImage Credit: REUTERS/Regis Duvignau Green Motorsports Audi Green Automakers Diesel Vehicles Electric Racing Vehicles Formula E abt audi le mans schaeffler