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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 kicks off A3 celebrity-fest marketing campaign with Dues

Audi is desperate to appeal to young people with its new 2015 A3 sedan. It's planning launch parties around the country to present the new model to these younger buyers, and its latest tactic is a series of videos starring celebrities the company considers trailblazers to further captivate youthful buyers.
The advertising campaign starts with a spot titled Dues starring comedian Ricky Gervais, chef David Chang, photo journalist Lynsey Addario, comedian Kristen Schaal, boxer Claressa Shields, artist collective Cyrcle, and church choir Voices of Destiny. It's being followed up with seven, minute-long online documentaries called Uncompromised Portraits about the folks featured in the new ad. Audi believes that they are all trailblazers who have forged their own way, and it's all supposed to fit with the A3's slogan of "Stay Uncompromised."
Dues will play during the NCAA March Madness tournament. Audi is also running two, 30-second commercials during the games to highlight the sedan's technology and two, 15-second ads to promote its Quattro all-wheel-drive system.

2014 Audi R8 V10 Plus

Ignore the naysayers who say the Audi R8 is too refined to be a proper supercar, or that it has begun to show its age - after a few tweaks for the 2014 model year, the automaker's flagship remains one of my favorite exotics.
Audi has treated all of its R8 models to a host of enhancements for the 2014 model year that include new LED headlights and tail lamps, larger steering wheel-mounted shift paddles, new exhaust finishes, updated alloy wheel designs and fresh exterior colors. However, the most significant news is the arrival of a proper seven-speed S-Tronic dual-clutch automatic transmission (it replaces the six-speed R-Tronic). The rapid-fire gearbox shaves a coupe tenths off the 0-60 sprint and improves fuel economy for both the eight- and ten-cylinder models (thankfully, a traditional six-speed manual is still on the order form).
I recently spent time with the new-for-2014 V10 Plus model, which is only available in a coupe body style. Compared to the standard V10 models, the Plus sheds upwards of 130 pounds thanks to lightweight manual seats (not fitted to my test car), carbon-ceramic brakes, reduced sound bay insulation, a smaller fuel tank and an assortment of carbon-fiber pieces (including side blades, front splitter, rear diffuser and spoiler). But that's not all, as the V10 Plus also receives a bump in output that pushes its ten-cylinder to an even 550 horsepower.