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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

Audi Prologue concept drives itself to CES with updated powertrain

What's the point in crafting a one-off concept car if it only gets to stand in the spotlight at one show? That's what automakers have been asking themselves recently, and the answer has, generally speaking, been to repaint their show cars, give them a bit of new tech and put them back on center stage. And the latest to do so is Audi, which has given its Prologue concept a new lease on life. The Prologue was originally unveiled at the Los Angeles Auto Show less than two months ago, showing the way forward for the future of Audi design, in an elegant coupe form that looked ready to take on the Mercedes S-Class Coupe. We even got a chance to drive it around the streets of LA, and when we did, we marveled at the concept's advanced infotainment system that caters a range of personal preferences according to who's on board. "It's easy to see how this could even reach for chauffeured, or autonomously driven vehicles" in the future, we said at the time. And it turns out Audi was on the same page. At CES this year, Audi has brought back the Prologue concept, given it a darker coat of grey paint, a grey-tone interior (instead of the previous shades of brown and tan), a fresh set of wheels and equipped it with the autonomous tech the German automaker has been at the forefront of developing. Though other automakers have been fitting their self-driving prototypes with all-electric powertrains, Audi kept the 4.0-liter twin-turbo V8 in place – but fitted it with a hybrid assist to drive output up from an already prodigious 605 horsepower and 516 pound-feet of torque to an even more impressive 677 hp and 701 lb-ft, dropping the 0-62 time down to 3.5 seconds. Now that's the kind of "piloted driving" tech (as Audi calls it) that we can get behind.

Next Audi A8 to drive itself up to 37 mph

Audi has been publicly, loudly, working the autonomous angle for years - it was working on Shelley, the autonomous TTS that would climb Pikes Peak in 27 minutes, way back in in 2009. Parent company Volkswagen had been working with Stanford University on autonomous vehicles for five years before that, and the same program collaboration would take the lead in Audi's efforts here. Where are we now? Well, a convoy of Audi A7s just drove journalists from San Francisco to the Consumer Electronics Show in Las Vegas, with "piloted driving in 100 mile stints." On the highway, the "piloted driving" A7 works up to 70 miles per hour and can change lanes, pass other cars, accelerate and brake on its own. A report in Autoweek says public adoption of the technology will continue with the next-generation A8, which will be able to navigate on its own up to 37 mph, make its way through traffic, find a parking spot and park itself. Over time, capabilities will be added - like a higher mph limit - as the technology and the legal issues are fine tuned. The A7 that just did the SF-to-LV run doesn't work in cities, only on highways, so it appears Audi is kicking this off with the abilities demonstrated in an A6 Avant last year at CES. That car had a Traffic Jam mode that only worked in dense traffic and up to 40 mph, but when in operation, it allowed the driver to watch a movie or conduct a videoconference. We have a feeling those two bits of icing won't be included in the fourth-generation A8, though. We'll be late to the party when the big sedan comes; Audi says it will go on sale by the end of 2016, but the US isn't expected to get it until 2017 as a 2018 model. Featured Gallery Audi A8 Spy Shots News Source: AutoweekImage Credit: CarPix Audi Technology Autonomous Vehicles Luxury Sedan

BMW reclaims US luxury sales crown from Mercedes

The numbers, they are in: BMW has reclaimed the luxury-sales crown from Mercedes by a margin of 9,347 cars. Mercedes donned the king's headgear in 2013 after a strong final quarter of 2013 when the new CLA and S-Class poured out of dealerships. This year, led by the 3 Series/4 Series and X5, BMW sold 339,738 units – a 9.8-percent increase year-on-year. Mercedes, led by the C-Class and M-Class, saw its sales go up by 5.7 percent to 330,391 units. We'll have to wait a bit to see if there's another registrations-vs-sales challenge as in 2012, when BMW was anointed US luxury ruler. Behind them, a dark horse named Lexus nudged closer to the leading Teutons, selling 311,389 cars. The Japanese luxury automaker also had the biggest gain among the top three, its sales rising by 13.7 percent compared to 2013. Audi had the biggest sales of anyone among the top five, though, with a 15.2-percent gain to 182,011, which moved it a spot ahead of Cadillac; the Wreath-and-Crest brand dropped 6.5 percent to 170,750. Acura (167,843), Infiniti (117,300), and Lincoln (94,474) took the final positions. Speaking of Lincoln, sales at the once-mighty luxury marque stand as the mightiest jump of any on this list, up 15.6 percent. That's the power of Matthew McConaughey... and better cars and a new crossover, sure. So now that we're back to Round One of 2015, in case no one else has said it yet: "Ok, fight!"

2015 will be the biggest year ever for cars at CES

Like the SEMA Show, major automakers are paying increasing attention to the CES, with 2015 expected to be one of the most auto focused yet. Ford, Volkswagen, Toyota, General Motors, Hyundai, Mazda, Audi, BMW and Fiat Chrysler Automobiles will all be in attendance when CES 2015 kicks off next week, taking up a record-breaking 165,000 square feet of space at the Las Vegas Convention Center. "We've come a long way from a single car on a carpet," Ford's Alan Hall told Bloomberg. Unlike SEMA, or a more traditional auto show, like the upcoming festivities in Detroit, CES doesn't necessarily focus on entire cars or the way they perform, but on the way our technology will interact with vehicles, and in how those vehicles will deliver information to drivers. "CES has become a major launch point for a lot of the big automakers," IHS tech analyst Mark Boyadjis told Bloomberg. "CES is a way for them to get on a global stage for technology." As for what kind of wares automakers will trot out in Las Vegas, we already know that BMW will show off an autonomous i3 electric car that can navigate its way through a multistory car park and can be hailed via a smartwatch app. According to Bloomberg, Hyundai will show off its own smartwatch app for the Genesis sedan, while Audi and Mercedes-Benz will show off autonomous vehicles next week. Automakers won't be the only companies looking to capitalize on CES. Tech firms, like chipmaker Nvidia, are becoming increasingly involved in the automotive game and will be in town showing their wares off to OEMs. "Two years ago, our booth would have been filled with PCs and people playing video games," Danny Shapiro, Nvidia's senior director for automotive business, told Bloomberg. "This year we made a strategic decision to shift the focus of the booth on automotive and de-prioritize some of the other things." Needless to say, you can expect to see a lot of news out of Las Vegas come next week. Stay tuned. News Source: BloombergImage Credit: Julie Jacobson / AP CES Audi BMW Chrysler Fiat Ford GM Hyundai Mazda Toyota Volkswagen Technology CES 2015

Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

Evo drives the Audi R18 E-Tron Quattro on track

Audi invited Evo scribe Richard Meaden to the Misano circuit in Italy to drive the Audi R18 E-Tron Quattro - and not just any R18 Quattro, were such a thing possible, but the No. 2 car that took first place at Le Mans this year driven by Marcel Fassler, Andre Lotterer and Benoit Treluyer. Meaden got just four laps in the diesel hybrid racecar - a warm-up, two hot laps and a cool down lap - so this wasn't about testing the R18 E-Tron's limits. In fact, Meaden makes it clear that such a thing isn't even possible for less than a professional driver; when driving at his limits (admittedly in Audi's very expensive car being watched by dozens of Audi engineer eyeballs), the data showed he was using 60 percent of the pedal effort of the professionals. Nevertheless, Meaden does have a lot to say about how the car delivers its massive ability, and with the wide-view shot of the cockpit we also get to see how busy and how intimate an endurance driver's office is. Check it out in the video above. News Source: Evo via YouTube Green Audi Racing Vehicles Videos evo

NHTSA awards Audi A3 and S3 sedans five stars

The Audi A3 and S3 sedans aced the New Car Assessment Program tests run by the National Highway Traffic Safety Administration, each scoring five stars overall. The A3 sedan adds this latest five-star rating to its Top Safety Pick+ award bestowed upon it by the Insurance Institute for Highway Safety earlier this year, and Audi says it's the only Euro premium luxury compact to do that double. The only place either car dropped a single star was for a male driver in the frontal barrier test and in the rollover test. It's clear from the lengthening list of top marks – and its list of safety technology – that it's among the safest sedans you can buy. Featured Gallery 2015 Audi A3: Review View 36 Photos News Source: National Highway Traffic Safety Administration [1], [2] via Audi World Government/Legal Audi Safety Sedan crash test audi s3

Weekly Recap: 2016 CTS-V gives Cadillac new momentum for the new year

It's been a rough year for Cadillac. The historic luxury carmaker been in the news for all of the wrong reasons: Declining sales, ditching its advertising agency and the relocation of its headquarters from Detroit to New York. But in late December, Cadillac reminded everyone what it does best: Build some of the rawest and most compelling luxury sedans in the world, as evidenced by the 2016 CTS-V. This monster churns out 640 horsepower from a supercharged 6.2-liter V8. Sound familiar? That's the Corvette Z06 engine, and it makes this CTS the most powerful production Cadillac ever. It also puts the sporting divisions of the Germans on notice. The new CTS-V easily overpowers the Mercedes-Benz E63 AMG S 4Matic and its 5.5-liter biturbo V8 rated at 577 hp, and the BMW M5 (with the competition pack) and its 4.4-liter twin-turbo V8 that pushes out 575 hp. The rear-wheel drive Cadillac can sprint to 60 miles per hour in 3.7 seconds, which is close to the 3.5-second time turned in by the 4Matic-driven E63 S, and a bit quicker than the 4.1 seconds posted by the M5. With Magnetic Ride Control, General Motors' stout eight-speed automatic transmission (also used in the Corvette), Brembo brakes and a carbon-fiber option package that pretty much builds your car out of carbon fiber – it's clear this Cadillac means business. Truth be told, we expected this CTS-V to deliver. It's been a serious sports sedan for a decade, and the recent generation and its 556-hp arrogance have been particularly memorable. But notice what we're doing here? We're talking about product. Not who makes Cadillac's ads, or if the brand's headquarters has a mailing address in NYC. Like the 2016 ATS-V that's due in the spring, the debut of the 2016 CTS-V (on sale in late summer) is a shot in the arm for Cadillac, and its arrival comes during time of transition. The brand is trying to reinvent itself as a modern luxury maker. It wants new customers, a different image and obviously more sales. Those things are going to take time, but with a 640-hp sledgehammer of a sports sedan on tap for next year, Cadillac can still maintain some of its swagger through all of the change. Other News And Views 1984 Audi Sport Quattro heads for the auction block If you're into '80s rally cars, you're really a car person. But if you're into that stuff – and we are – this 1984 Audi Sport Quattro is sure to get your blood flowing.

Former Audi chief designer Wolfgang Egger leaves Italdesign

The latest word from the international community of automotive designers has it that Wolfgang Egger is leaving Italdesign, but just where the accomplished designer will land next and who will take his place remain big question marks. Egger is a designer who has bounced back and forth between Italy and Germany over the course of his career. He was born in Germany but studied in Milan. He began his career at Alfa Romeo in 1989 and was named its chief designer by 1993 before being head-hunted by the Volkswagen Group in 1998 to head up the design department at Seat. A few years later he went returned to Italy to run the Lancia design department, and was subsequently renamed to the same post at Alfa Romeo. In 2007 he went back to his native Germany to head up the Audi design office, over which he assumed complete responsibility by 2012, but left Audi in 2013 to run Italdesign. For those unfamiliar, Italdesign is the studio founded by Giorgetto Giugiaro (pictured at left next to Egger) back in 1968 but which, along with many other Italian design houses, fell on hard times in recent years. The Volkswagen Group swooped in to rescue the troubled studio in 2010, turning it into something of an in-house advanced design department to provide an alternative perspective on the direction in which the group and its various brands could take their respective designs moving forward. With Egger now leaving its helm, Italdesign and its German parent company will need to find his replacement, and we're sure they'll announce one in due course. The bigger question on our minds, however, is where Egger himself will head next. Given the path his career has taken to date, we wouldn't be surprised to see him land elsewhere in the Volkswagen Group or find a new role in the expanding Fiat Chrysler Automobiles empire. Then again, Egger could find it time to open an entirely new chapter. Watch this space. News Source: Car Design NewsImage Credit: Newspress Design/Style Hirings/Firings/Layoffs Audi Volkswagen designer italdesign giugiaro wolfgang egger