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BMW considering building 3 Series in North America

There might be even more BMWs coming from North America soon. The company recently announced plans to build a flagship crossover called the X7 at its Spartanburg, SC, factory. Now, rumors are emerging that the Bavarians might be thinking about building a second North American factory that could build its quick-selling 3 Series.
According to Bloomberg, the German luxury giant is considering several possible locations for a North American factory, including two in Mexico, that may build the 3. "We will decide this in the next months. On the North American continent, there's still potential," said BMW production boss, Harald Krueger, in an interview meant for company staff obtained by Bloomberg.
If BMW decides to open a plant in Mexico, it would be following its rival Audi, which already announced construction of a factory there. Mercedes-Benz has been rumored to be working on a deal with Nissan to build its cars South of the Border as well. Rumors of Bimmer considering Mexican production have also cropped up in the past, so it wouldn't come as a total surprise to hear it made official.

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

GRAND-AM, IMSA announce deal to bring DTM racing to US

It won't be until 2015 at the earliest, but the International Motor Sports Association (IMSA), Grand-Am and the Internationale Tourenwagen-Rennen have agreed to a licensing and cooperation deal that could bring a version of Germany's DTM series to the US.
When the American Le Mans Series and Grand-Am are officially combined next year, the resulting body will be called United SportsCar Racing (USCR). IMSA will be the sanctioning body for that series, and DTM races could be run as support events. It was also suggested by an ALMS chief that DTM races could be standalone or join NASCAR and IndyCar weekends.
With the so-called DTM America finally agreed to, there is now a way for manufacturers to run the same DTM-type cars in Europe, the US and Japan - last year Japan's Super GT series agreed to adopt "the basic technical regulations" of DTM for the GT500 class, the top class in the series. That already puts six manufacturers in play: Mercedes-Benz, Audi and BMW that run in Germany's DTM and Honda, Nissan and Lexus that run in Super GT. The DTM oversight body has invited American brands to Germany for the opening round of the 2013 season, and will begin actively courting their participation in the US series. Check out the press release from Audi with comments on the deal below.