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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

Automakers teaming with Google to bring Android to cars this year

Remember how we mentioned that Hyundai would be offering a BlueLink infotainment app for Google Glass? And how last week, we told you about a rumored partnership between Audi and Google? Well, both of these things were just part of a much bigger deal.
Google has teamed up with Audi, General Motors, Hyundai and Honda to form the Open Automotive Alliance. With the help of chipmaker NVIDIA, the group aims to bring Google's Android operating system to the auto industry on a large scale. While the speed with which Android will be adopted by the industry remains unclear - the OAA's own press release says "timing for each automaker will vary" - we could see the first Android-equipped vehicle by year's end.
For those that keep their ear to the ground in the automotive tech world, this is a big deal for more than just one reason - Honda, GM and Hyundai are all partners in the Siri Eyes Free program from Apple. The future of that relationship now that three of its automakers are in bed with Apple's arch-rival, though, could be under threat.

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.