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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's latest design is a table clock

Audi and Porsche have more things in common than we can count. They're both German, of course, and have both enjoyed considerable winning streaks at Le Mans. Both have a tendency to put their (often turbocharged) engines at one extreme of the car or another, driving either the closest wheels or all four. Both tend to follow a brand-wide evolutionary design approach, focusing their energies instead on the engineering that goes under the bodywork. Both now find themselves under the same corporate umbrella, and now that they are, Audi has followed Porsche's lead in setting up its own design consultancy.
Like Porsche Design, Audi Design is now taking on projects for all manner of clients, from pianos to foosball tables. In this latest collaboration, Audi has designed a table clock for Munich-based watchmaker Erwin Sattler. The table-top clock houses a high-frequency mechanical movement in a foot-tall glass case that lets you see the intricate clockwork, held in place by two ruthenium clasps.
Unveiled in Switzerland at the Baselworld watch and jewelry show, the clock is now available to order. But while prices haven't been announced, don't expect it to come cheap: other Erwin Sattler table clocks typically sell for upwards of $10,000, and we wouldn't expect the new design to come at a discount. Scroll down below for the official press release.

Is the Audi R8 E-Tron project back on again?

If you ask Audi about its R8 E-Tron prototype, the all-electric two-seater that was first shown at the 2009 Frankfurt Motor Show, the automaker will tell you that its development program is on hold. Yet, as we reported in January, limited production of the combustion-free coupe may be moving forward... information still officially unconfirmed by the automaker.
New images of the electrified R8 undergoing winter testing in Europe have emerged (above and in our gallery), and the car has been spotted running in Spain as well. Both sightings support reports that the E-Tron, with its 150-mile battery range and 8:09 Nürburgring time, may be back in business. Does the program have a green light, or is Audi merely trying to take some of the thunder from the BMW i8?
Whatever the case, if the R8 E-Tron does eventually make it into showrooms - and we are now led to believe it will - expect production volume to be very low. Assuming it doesn't get shelved again, of course.