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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

Porsche's 959 is still poster-worthy after all these years

Today, we have the Porsche 918 Spyder. Before that, there was the Carrera GT. While both of those cars are dramatic departures from the traditional, rear-engine Porsche formula, they owe their very existence to another wild child of the iconic German brand - the 959.
Like so many of the great performance cars of yesteryear, the 959 was a homologation special, built just so Porsche could go racing in the clinically insane Group B rally series. Fewer than 400 959s hit the streets, but those that did were some of the most advanced cars of the 1980s. A rear-mounted, twin-turbocharged flat-six sent its power through a still-rare all-wheel-drive system, creating a race-inspired rocket that was, for a short time, the fastest production car on the planet.
Xcar has the story of the 959, from its inception to its conquest of the Paris-Dakar rally, which is interspersed with a drive of the legendary coupe. Scroll down for the full video.

Porsche Macan configurator lets you build $110k crossover

Part of the idea behind the new Porsche Macan is that it's less expensive than its larger sibling, the Cayenne. But with a starting MSRP of $49,900, the base Macan S is actually $300 more expensive than the cheapest Cayenne. That, however, is just the start, as you can see from the online configurator.
As is often the case with German cars in general (Porsches especially), tick the right boxes and you'll soon be leaving that base price behind in a cloud of tire smoke. Start off with the Macan Turbo and you're looking at a base MSRP of $72,300, which is already over twenty grand more than the naturally-aspirated version. But even that soon escalates as the options pile on.
Aurum Metallic paint will set you back $3,120. 21-inch wheels, another $3,300. You'll probably want the air suspension, torque vectoring, the Sport Chrono package, adaptive cruise control and lane-change systems, and those each add over a grand to the price. A Burmester surround sound system is the single most expensive option at $4,290. And if you choose them all - and choose all the optional trim packages - you'll soon be looking at a price in excess of $110,000. That's enough to get you into a Cayenne Turbo... assuming you don't tag on all the options to that one, too.