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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

Audi promises production laser headlights

Audi is showing off new laser headlight technology this week at the 2014 Consumer Electronics Show on its Audi Sport Quattro Laserlight Concept, and most intriguingly, the automaker has plans to use the long-range lighting on production vehicles. Audi CEO Rupert Stadler tells Automotive News that this type of headlights will be used on a future production vehicle, although he did not specify any timeframe.
On the concept vehicle, the headlights employ LED low beams, while the high beams use the laserlight technology. Audi says that these lights are not only very small ("a few microns in diameter") they are also able to light the road for almost a third of a mile (1,640 feet), with three times the brightness of an LED highbeam, yet with pinpoint control. These lights have already been confirmed for use in motorsports on the 2014 Audi R18 e-tron Quattro LMP1 racecar, and the tech will eventually trickle down to road-going cars.
In addition to how long this trickle down will take, it's doubtful we'll see these lights in the US anytime soon. Audi is still working with the US Department of Transportation for approval of its LED Matrix Beam headlights, which are already sold in other markets, and the negotiations appear to be taking quite a bit of time. Automotive News also notes that the laser headlights earmarked as options on the 2015 BMW i8 will not be offered in the US, either.

2014 Audi R8 officially on sale, starting at $114,900*

After skipping the 2013 model year, the Audi R8 is back for 2014 with a new look, added performance and a slightly higher starting price. In V8 coupe form, the 2014 R8 starts at $114,900 (*not including $1,250 for destination and a $3,000 gas-guzzler tax), but looking at that price, which has risen just $5,900 since the performance coupe first debuted in the US for 2008, inflation doesn't seem to have hit the R8 as hard as some other sports coupes - like, say, the Nissan GT-R.
Opting for the S tronic automatic gearbox will cost $9,100 for all models, while R8 V8 and R8 V10 models still offer the drop-top Spyder model for an extra $13,500. Not available in Spyder form, is the all-new 550-horsepower R8 V10 Plus, which starts at $170,545. Scroll down for the full pricing breakdown of the 2014 R8, which went on sale yesterday.