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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 CVT suit settlement given green light, 64,000 cars covered

Audi drivers, listen up. If you bought or leased a 2002-06 model-year A4 or A6 with a factory-installed Continuously Variable Transmission (CVT) that failed, you may be entitled to reimbursement under a recently settled class-action lawsuit with corporate parent Volkswagen.
According to Automotive News, the settlement covers about 64,000 vehicles and alleges that "manufacturing and design problems caused the transmissions to fail and left owners stuck with repair costs." While the suit also argues Audi was aware of these issues (going so far as to hide that knowledge from consumers), the settlement stops short of acknowledging any wrongdoing by the German automaker.
Audi drivers are eligible for a cash reimbursement if their CVT repairs occurred within 10 years or 100,000 miles of the date they bought or leased the vehicle before June 19, 2013. To be eligible for compensation, drivers must submit a claim form (found here) with supporting documents by November 18.

Audi to use this telepresence robot to fix cars

Next time you take your Audi in for service, watch to see if a little white stand is following your mechanic around. It's not some new measurement tool for your car; it's a actually a robot being controlled remotely to improve vehicle service. While bots playing a role in building cars is nothing new, the company is taking things a step further in the US by introducing Audi Robotic Telepresence to assist dealer technicians in repairing the brand's vehicles. The droids are already being used in a pilot program at about 18 dealers nationwide with plans to have it at 100 in the near future.
At the moment, ART, as its called, is more R2-D2 than The Terminator. It certainly won't be doing any wrenching on your A4 anytime soon because it doesn't even have arms. Instead, the robot comprises a remote-controlled stand with multiple cameras, a microphone and speakers. The bot is operated remotely by Audi Technical Assistance consultants and Technical Field Managers who can talk back-and-forth with mechanics about vehicle service and help to remotely diagnose problems. The droid is even equipped with a handheld camera and borescope to reach into tiny crevices.
Audi claims that ART is the first system of its kind to directly link automakers with technicians at the dealer level in this way and leads to faster, more accurate service for customers. Scroll down to watch a video of the bot in action and read the release for the current list of participating dealers.