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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 A7 Sportback H-Tron Quattro packs plug-in hydrogen powertrain

If you think a plug-in diesel hybrid is an expensive proposition, just wait until you hear details about the just-revealed Audi A7 Sportback H-Tron Quattro. The "H" in H-Tron, as you might guess, stands for hydrogen, so say hello to a new concept that combines a plug-in battery system with a hydrogen fuel cell. Yeah, exactly. Let's start with the numbers. On the plug-in side, the new H-Tron has an 8.8-kWh lithium-ion battery that can power the car for up to 31 miles on battery power. With electric motors on both axles – it's a Quattro, after all, but a through-the-road hybrid with electronic torque distribution management – the A7 H-Tron uses a hydrogen fuel cell and four (!) H2 tanks to offer about 62 miles per gallon equivalent. Audi says the overall fuel cell stack efficiency is "as high as 60 percent" while the electric motors operate at 95 percent efficiency. Efficiently turning all of that electricity into movement means the A7 Sportback H-Tron Quattro has a total power output of 398.3 pound-feet of torque. The 4,299-pound concept can allegedly go from 0-62 miles per hour in 7.9 seconds and has a top speed of 112 mph. The car's total range is 311 miles. The A7 H-Tron is not the first plug-in hydrogen vehicle concept. That title goes to the Ford HySeries Edge. Mazda also considered putting a hydrogen range extender in the Mazda5 plug-in van. The Audi A7 Sportback h-tron quattro It sprints from 0 to 100 km/h (62.1 mi) in 7.9 seconds and on to a top speed of 180 km/h (111.8 mph). It covers over 500 kilometers (310.7 mi) on one tank of fuel – and its exhaust emits nothing more than a few drops of water: The A7 Sportback h-tron quattro, which Audi is unveiling at the Los Angeles Auto Show 2014, uses a powerful, sporty electric drive with a fuel cell as its energy source that operates in combination with a hybrid battery and an additional electric motor in the rear. The overall electrical system power of 170 kW is transferred to both the front and the rear wheels. This drive configuration makes the emission-free Audi A7 Sportback* a quattro through and through – a new departure in fuel cell cars. "The A7 Sportback h-tron quattro is a genuine Audi – at once sporty and efficient. Conceived as an e-quattro, its two electric motors drive all four wheels," explained Prof. Dr. Ulrich Hackenberg, Member of the Board of Management for Technical Development at Audi. "The h-tron concept car shows that we have mastered fuel cell technology.

Audi sketches out new TT ahead of Geneva debut

In less than two weeks, the doors will open at the Geneva Motor Show, and we'll be there to capture all the action. Among the dozens of new debuts we're looking forward to will be the arrival of the new third-generation Audi TT, and to give us a better idea of what we're looking forward to, Ingolstadt has released this series of teaser sketches.
Looking every bit like a TT should and drawing heavily on the Allroad Shooting Brake concept that debuted at the Detroit Auto Show last month, the images foretell of a new Audi sports coupe with a single-frame grille, matrix LED lighting and a deeply creased hood with the four-ring emblem placed atop the nose, as on the R8.
Horizontal lines at the back preview Audi's next design language, with twin exhaust tips flanking the diffuser on base models and quad tips on the next TTS. A cleaner interior design also harkens back to the first-gen TT that started it all and from which the new one draws its inspiration. Scope out the images in the gallery above for a closer look at what's to come, then scroll down for the details in the press release below.