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Audi pits S3 against Ur-Quattro on gravel

If you had to pick a winner between the latest Audi S3 and the original Audi Sport Quattro, which would it be? Both hot hatches pack around 300 horsepower and all-wheel drive, but they're separated by a good thirty years of development.
To find out, Audi took both to the old rally circuit in San Remo. Behind the wheel of the Ur-Quattro they put none other than The Stig himself - no, not the Top Gear test bot, but Stig Blomqvist, the Swedish former rally driver who drove the Quattro to the World Rally Championship in the mid-80s. In the S3 they put someone named Hermann Müller, who as best we can tell was one of Auto Union's original Silver Arrow drivers - but he died in 1975, so it's probably the guy who writes for the Audi magazine. Regardless, the contest was pretty close, so it's worth checking out in the 2:26 video clip below.

Audi planning A7 powered by fuel cell?

Back in March, Volkswagen AG CEO Martin Winterkorn voiced his doubts about the cost and infrastructure associated with building hydrogen fuel cell vehicles, but according to Autocar, that isn't stopping Audi from developing a fuel-cell version of the Audi A7. While we're inclined to take this report with a grain of salt, this wouldn't be the first time a VW executive has made seemingly damning statements about electric powertrains that later proved to be incorrect.
After speaking with Audi technical chief Wolfgang Dürheimer, Autocar reports that Audi is building a fuel cell A7 that is expected to be ready for testing by August. Like the electric E-Tron and natural-gas-powered G-Tron models, the hydrogen fuel cell Audis could, if produced, carry their own "tron" nomenclature.

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