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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

BMW already considering four cylinders for next M3

The cylinder count in BMW's M3 has fluctuated over the years. The original M3 debuted in 1985 packing a 2.3-liter inline-four, but subsequent models went with sixes until the outgoing generation upped the cylinder count to eight. With its latest model, BMW has dropped back to six cylinders with a pair of turbos taking the place of the extra pistons. But the next M3 sedan and M4 coupe could go back to the model line's roots with a four-cylinder engine.
Speaking with BMW M product manager Carsten Pries at the launch of the latest M3 and M4 in Portugal, our Aussie compatriots at Motoring.com.au report that "you could see a future [M3] powered by a four-cylinder engine." Offsetting the reduction in cylinders, the lighter engine would benefit the vehicle's weight and balance, thus enhancing performance.
We wouldn't expect the next M3 and M4 to lose any power in the process, though: Output in the M3 has only risen over the generations, from 192 horsepower in the four-pot original to 282 hp in the six-cylinder E36, 338 hp in the six-cylinder E46, 414 hp in the V8 E90 and 425 ponies in the new turbocharged six-cylinder F80 model. With that latter model having just debuted, it'll likely be a good six or seven years before the next version comes along, giving BMW plenty of time to settle on an engine - however many cylinders and turbochargers it has. In the meantime, you'll have to forgive us for taking a romp down M3 memory lane in the fresh gallery of images above.

BMW i3 takes to the track, circles it in a way you don't expect

So, who wants to see a BMW i3 race around a track. That's what we thought. It's not a long video, but it is entertaining, and the way the urban EV does a 'loop' at second 25 certainly caught out eye. The i3 is scheduled to go on sale in the US later this year and will start at $41,350. The diminutive electric vehicle has a top speed of 93 miles per hour and can hit 62 mph in 7.2 seconds. We found it a hoot to drive, but we're not sure if hardcore BMW performance fans will totally 'get' this car's performance. The i3 is great at what it does, but it wasn't born to hit the race track. After seeing this video, though, we want a crack at it, skinny wheels and all. You can get a behind-the-scenes glimpse here, where Chris Neff writes, "The i3 basically turns in on itself. This is one sharp turning radius, take a look at 24 seconds into the video. We were actually trying to get the i3 to do doughnuts, but the computer would not let the rear brake loose, still, you can see how it held and how sharp we were turning....about 27 times in a row." Watch all 49 seconds below. And wonder with us if whatever aerial device was used to get the shot that ends at four seconds in was destroyed just after the video cuts away.