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Audi and Mercedes both outsell BMW in January

There won't be any celebrations in Munich this month, as BMW was outsold by arch-nemeses Audi and Mercedes-Benz. The Bavarian company finished behind Audi in January, which took the top spot for the first time since June of last year, Bloomberg reports. Ingolstadt rode high on a 10-percent bump in sales, while Mercedes saw a larger 14 percent increase. BMW, meanwhile, only saw a modest 6.3-percent sales increase last month, thanks in large part to its struggles in China. The company's sales there increased at about half the rate of its chief competitors, with a 7.9-percent jump to Mercedes and Audi's roughly 15-percent increases. Perhaps more worrying for BMW, though, is that this could become something of a trend for the company. According to Bloomberg, issues with Chinese dealers who cancelled orders over sales targets and bonuses combined with what the publication calls aging models, could spell bad news for the German marque. "This looks like a pretty significant decline in growth compared to Mercedes and Audi," Bankhaus Metzler analyst Juergen Pieper told Bloomberg. "I think this will continue during the next few months." News Source: BloombergImage Credit: Matthias Schrader / AP Earnings/Financials Audi BMW Mercedes-Benz

BMW planning Zhi Nuo Chinese sub-brand, may export models

Automakers continue to pour big money into the developing market that is China, and new sub-brands born of joint ventures with domestic partners crop up on what seems like a weekly basis. The latest? According to reports, BMW and its Chinese ally Brilliance are forming a new sub-brand called Zhi Nuo ("The Promise") that will likely rely on existing or older BMW products as a basis for new models.
Previous reports had indicated that the sub-brand could build its offerings based on an older 3 Series model (presumably the E90 series), but newer rumors have the X1 crossover (shown) factoring in. The Zhi Nuo brand could receive its official unveiling as soon as later this month at the Shanghai Motor Show.
Perhaps most interestingly, Automotive News Europe reports that the automaker's ambitions for Zhi Nuo may extend beyond China's borders. It's not clear what markets BMW may be eying, but executives admit the company hasn't ruled out Europe.

Next BMW M5 could go all-wheel drive

Franciscus van Meel had been a part of Audi AG management since 1996, in positions including chassis development and vehicle project director. In 2012 he was named managing director of Quattro GmbH - headquarters for personal favorites like the RS6 Avant and R8 - but he lasted just two years before being sent to lead an R&D division in Beijing. He returned from exile just ten months later but wearing a blue and white roundel, after being named to the top spot at BMW M. So it shouldn't be a surprise that when Auto Express asked van Meel about all-wheel drive on the next M5, he replied, "If we continue the power increases in the future... then probably the next generation M5 and M6 will have so much torque and power that we need to think about those solutions." It would make sense from a competitive standpoint, too - once the Mercedes-Benz E63 AMG went 4Matic, that put the two of the three cars in the segment in the AWD column. And there's no "if" about a power increase: a recent report put next generation's output at 600 hp - that's 40 hp more than today - to power a lighter car. That report said there'd be the option of four-wheel drive, but AE takes van Meel's words as a definite sign that we'll see a more complex drive arrangement under the next M5. If so, then truth be told, van Meel is reiterating the thoughts of his predecessor from two years ago. The new M boss doesn't like the phrase "four-wheel drive," however; in clarifying those "solutions" he mentioned, he said that the car would be rear-biased to remain emotional, with the front tires kicking in to aid traction. Related Video: News Source: Auto ExpressImage Credit: BMW BMW Luxury Performance Sedan bmw m