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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: i8 sold out, i3 records 10k orders

Just in case anyone was wondering how plug-in BMW cars would be received, the answer is apparently "quite well." After speaking with BMW's global sales chief last week at the LA Auto Show, Reuters has learned that the plug-in hybrid i8 sports coupe is already sold out for its first year on the market.
There is no word as to how many i8s BMW sold, but the first example was delivered to a customer last week in Germany. As for the all-electric/range-extended i3 hatchback, the automaker has received more than 10,000 orders for this model before it even goes on sale. Likewise, we don't know how many BMW plans to sell, but we do know they'll be showing up in the US before next summer.
We've already spent some time behind the wheel of both plug-in BMWs, and you can check out our first drive of the production i3 and our first drive of an i8 prototype.

BMW i8's three-cylinder sounds like it's shaping up quite nicely

We've run across some rather interesting news... or perhaps we should say interesting sounds. The folks from Bimmerpost have scrounged up a short video showing a preproduction BMW i8 running through a few gears in Sport mode at a quick pace, and if you were concerned that the somewhat eco-friendly nature of the upcoming German sports car would neuter its ability to stir the aural senses, fret not.
Judging by the lovely noise coming from the engine compartment of the i8 in the video, BMW's expertise in tuning high-strung, small-bore engines - remember, BMW Motorrad has quite the penchant for well-conceived motorcycle engines - has come through loud and clear. Now, it's worth mentioning that BMW's controversial Active Sound technology will be included with the i8, so the production car may not sound exactly like this version, which is running with the tech disabled. Owners won't have the ability to disable Active Sound on production i8s.
In related news, Bimmerpost reports that BMW will equip the i8 with an external Active Sound Design system to go along with its Pedestrian Protection System. That means those on the outside will likely hear piped engine recordings from the rear and a sort of "howl" from the front in order to warn pedestrians that the otherwise quiet (when running on electricity, that is) car is approaching. It will also feature technology that can stop the car before contacting a pedestrian.