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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

2016 Technology of the Year Finalist: Audi Virtual Cockpit

The heart of most infotainment systems is a touchscreen in the center console. In many systems, some information can be sent to the gauge cluster in slightly redacted form – stripped-down navigation commands, basic audio info, that sort of thing. To get the full story, the driver has to take their eyes off the road and look to the middle of the dashboard. Audi's Virtual Cockpit, in essence, ditches the center screen and places all that information in the gauge cluster. The high-resolution TFT screen is just over a foot wide, and it has two main modes: Classic view, and Infotainment view. Classic looks like many other traditional TFT gauge clusters, with large traditional gauges and the ability to display a decent amount of information in the space in-between. Go into Infotainment view, and the gauges shrink and head to the lower corners, freeing up a much larger amount of real estate for, say, the nav system map. The gauges also get out of the way when utilizing the menu, entering a destination, or that sort of thing. The four main modes are standard stuff. Virtual Cockpit will show you navigation, media, phone, and trip computer information in large or small formats. You interact with Virtual Cockpit with a familiar MMI wheel-type controller in the center console, like in many other Audis, or with buttons and a scroll/push wheel on the left side of the steering wheel. Climate control functions are handed by physical controls cleverly integrated in the center three vents. It takes a lot of processing power to make all this work as well as it does, and that's handled by NVIDIA's Tegra 3 processor – a quad-core processor usually seen in tablets and smartphones. The system is quick and responsive, and we found the high-resolution screen to be impressively sharp. If there's a downside, it's that Virtual Cockpit doesn't leave an opportunity for a passenger to step in and, say, enter a destination or change the radio station without altering what's right in front of the driver. It could be inconvenient at best, distracting at worst, to have the nav system directions you're trying to follow suddenly be superseded by the audio menu. Adding a small secondary screen for the passenger could be one fix; a connected companion smartphone app another. In the meantime, it's an impressive implementation of a clever idea.

Audi A8 sort-of debuts at 'Spider-Man: Homecoming' premiere

Audi's A8 strip-tease continues its glacial pace with the appearance of a camouflaged example at the Spider-Man: Homecoming premiere in Hollywood, ahead of the car's official debut on July 11. For those of you wondering what Audi has to do with anything Spider-Man, it's because Audi has significant product placement in the film, and the A8 has a cameo role. And if you were wondering why Audi is putting all of this effort into getting its cars in the film, just check out box-office numbers for almost any movie from Disney's Marvel Cinematic Universe. You would be crazy if you didn't want your cars to be seen by that many eyeballs. Anyway, back to the car at hand. Since the car won't officially, completely be revealed for another couple of weeks, it is still disguised, this time with some custom camouflage. Rather than thick covers and typical swirly vinyl, this car has a wrap that looks like a bunch of spider webs. There are some Spider-Man logos scattered about, too, along with a big black spider on the hood. Still, we get a pretty good look at the car ahead of time. It has a nose that is clearly based on Audi's Prologue and Prologue Avant concepts. However, the A8's fenders are much less muscular and pumped up. The lower grille is also quite restrained. According to Audi, there will be a couple of moments in which you'll be able to spot an undisguised A8 in Spider-Man: Homecoming. You'll, of course, also see a mix of other Audi products. The full reveal of the flagship sedan happens in Spain on July 11, and we expect to get full details on its specifications. We may also learn about some additional fancy technology beyond the already announced high-tech start and stop system and active suspension. Related Video: