2004 Bmw X3 2.5i Sport Utility 4-door 2.5l on 2040-cars

Auto blog

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 i3 EV continues to shed camouflage

As BMW gets closer to introducing the production version of its plug-in i3, we keep seeing the hatchback being tested with lessening degrees of design-obscuring camouflage. Last we heard, BMW is expecting to have the i3 ready by the end of this year, and the swirly, blue camo does little to hide its basic design in these latest spy shots.
We get our first clear look at almost everything above the wavy beltline including the silver roof edges and matching mirror caps, and it can't hide the dip in the beltline behind the B-pillar - matching what we've already seen on the i3 Coupe Concept unveiled at the LA Auto Show last year. Another change we notice is the lower portion of camo removed from the front fascia allowing us to see the air opening and the black, vertical inserts leading up to the fog light bezels. Judging by the "Hybrid Test Vehicle" stickers on the side of this prototype, we can only assume that this is the optional range-extended model.

BMW crushing ActiveE EVs, saving all batteries

It's unlikely to spark a movement and a movie, the way a certain EV1 did a decade ago, but anyone who's seen Who Killed The Electric Car? will likely cringe at this bit of news. Despite the fact that crushing and recycling old vehicles is standard operating procedure in the auto industry, when EVs are involved, it's always a touchy subject. The next phase will see "all of the lithium-ion batteries being repurposed for Battery Second Life research projects." So, what's the news? Well, the image you see above, which comes from the spotting of 16 smashed BMW ActiveE EVs on flatbed trailers on California Route 91 near Los Angeles, CA. EV advocate Chelsea Sexton told Green Car Reports, "It's all very deja vu, right down to [BMW's] DriveNow promotion as a don't-look-behind-the-curtain distraction – recall GM touting EV1s being donated to museums and universities? – and VINs spray painted on the sides, allowing former drivers to identify their own cars." BMW's take on this is that the ActiveEs were always meant to have a limited lifespan, and their time has come. As spokesman Dave Buchko tells AutoblogGreen, "The learning begun with the ActiveE will transition to the next phase with all of the lithium-ion batteries being repurposed for Battery Second Life research projects." (You can read his full statement below.) Originally, there were 700 ActiveEs leased to Electronauts (give or take). Yahoo! Autos points out that the ActiveEs were originally imported into the US as "pre-production" cars, which means they can't be sold, they can only be used for carsharing projects or re-leased. Eighty of those ActiveEs recently found a second life as vehicles in BMW's DriveNow carsharing fleet in San Francisco (bringing the total of ActiveEs in the program to 150) and "some have also been returned to Munich for additional research markets," Buchko said. The big picture here is that no one should be sad to see these cars go. Yes, they may have had some life left in them, but the rules say their time is done and everything is being done to crush responsibly in accordance with the law. Like Plug In Cars says, we're in a completely different era now than we were when GM crushed all those EV1s a decade ago. Instead of marking the end of a plug-in vehicle program, sending the ActiveEs away to be recycled is a symbol of the evolution and growth of BMW's i Project.