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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

2016 BMW X1 packs more into its little footprint

BMW is rolling out the second-generation of its X1 crossover, promising a roomier interior, greater efficiency and more technology in a compact form. The 2016 BMW X1 clearly embodies more dynamic styling than the model it replaces, with a more upright form punctuated by a higher seating position as compared to its low-slung predecessor. Inside you'll find a fully redesigned cabin space with more room for both people and cargo, and a long list of features. A 6.5-inch dashboard display comes standard along with a seven-speaker audio system and cloth seats, but buyers can upgrade to an 8.8-inch monitor, a 12-speaker Harman Kardon system, and a number of leather upholstery options. Upgrade to the Premium Package and you get a larger panoramic moonroof than that offered on the outgoing model, along with adaptive LED headlights and a head-up display. The Drive Assistance Plus package throws in features like lane departure, automatic high-beams, frontal collision warning, pedestrian detection, active cruise control, and park assist. There'll be an M Sport package available later as well, offering sports seats, paddle shifters, and a retuned suspension. Though BMW will surely be offering an array of engine options in other markets, for the US it's offering the new X1 exclusively in xDrive28i spec. Its 2.0-liter turbo four drives 228 horsepower and 258 pound-feet of torque through an eight-speed automatic transmission to all four wheels for a 0-60 time of 6.3 seconds. That ought to help the Bavarian automaker move even more than the nearly 62,000 units of the X1 it's sold since its introduction here in 2012. Pricing for the new version of BMW's littlest crossover will be released closer to its arrival in showrooms in the Fall, but you don't need to wait that long to delve into the full details in the press release below and the high-resolution images in the gallery above. The All-New BMW X1: - Greatest interior roominess and versatility in its class - Highest power with reduced emissions - Commanding presence, robust proportions, dynamic lines - Innovative connectivity and groundbreaking BMW EfficientDynamics technology unparalleled in the segment Woodcliff Lake, N.J. – EMBARGO: June 2, 2015 – 6:00pm EDT/3:00pm PDT... Today, BMW announced the all-new BMW X1 Sports Activity Vehicle.

BMW 4 Series Gran Coupe blows the doors back on [w/video]

BMW sure seems to take pleasure in confusing the hell out of us. It used to be pretty simple: if you wanted a compact Bimmer, you had to look no further than the 3 Series. Then it was just a matter of which bodystyle you wanted. But the smaller end of BMW's lineup has gotten more complicated lately. Never mind the 1 Series and 2 Series (in their various iterations) that have slotted in below it - now the 3 Series has been split in two: Want a four-door, get the new 3 Series. Want a two-door, the 4 Series is your address. Right?
Almost. Because now there's a 4 Series Gran Coupe that keeps the two-door's roofline (or some approximation of it) but adds an extra set of doors in the back, thereby bridging the gap between the 3 Series sedan and 4 Series coupe. And it's just made its public debut here at the Geneva Motor Show.
The difference between this and the two-door 4 Series is plain to see: it's got two extra doors. But what's the difference between this and the 3 Series sedan? About two or three grand, to start with - depending on which version (428i Gran Coupe or 435i Gran Coupe) you choose. But it's also sleeker, more muscular and altogether that extra bit sexier. Which is a good trait, as you can see from our gallery of live shots above, to have in your European sports sedan, coupe, or whatever you want to call it.