2009 - Bmw 3-series on 2040-cars

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BMW calling in 76k vehicles over airbag issues

Vehicles these days are typically fitted with a mat in the front passenger seat that determines whether that airbag needs to be activated in the event of a collision and how it should deploy. But that system doesn't always work, as Mercedes recently found in its SL-Class roadster and as Suzuki did before it with the Grand Vitara and SX4 crossovers. Now a crop of BMW vehicles have befallen the same issue, prompting the Bavarian automaker to cooperate with the National Highway Traffic Safety Administration to issue a recall for the vehicles in question.
The problem affects precisely 76,565 vehicles, including certain the 3 Series (sedan and wagon), 5 Series, 7 Series and X5 crossover families spanning the 2006 and 2007 model years and fitted with a certain type of seat. However, since the parts to repair the problematic components are not currently available, as you can see from the recall notice below, it won't be until March 2014 when local dealers will be able to resolve the issue.

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 dismisses Tesla tie-up talk

Despite recent rumors to the contrary, don't expect to see much collaboration between Tesla and BMW in the near future. Based on some rather prickly statements from the German automaker, Elon Musk might have even burnt some bridges in Bavaria with his latest proclamations. The spat stems from Musk's recent interview with German magazine Der Spiegel where he discusses future collaboration with BMW on "battery technology or charging stations" and the possibility of a battery factory in Germany. But apparently, any future tie-ups are news to the Bavarian automaker. In an interview with the German business publication Wirtschafts Woche, an unnamed spokesperson for the company claims Musk said it all for PR value and swats down most of the statements. BMW has no intention of acquiring Tesla shares, and they aren't working together on any tech. There's not much chance for future cooperation on a battery factory in Germany, either. BMW believes that the cells can just as easily be purchased from suppliers, like other auto parts. The one slight concession is that the spokesperson said that the German automaker would be willing to supply Tesla with carbon fiber. That's not an exclusive offer, though, and the company is open to negotiate such a deal with any interested automaker.