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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

Welcome Audi RS6 Avant, goodbye Lincoln Continental | Autoblog Podcast #592

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder and Assistant Editor Zac Palmer. Our editors cover a lot this week, starting with the news. They geek out over the Audi RS6 Avant coming to America, and mourn the loss of the Lincoln Continental. They address rumors of the Toyota Land Cruiser's demise, and analyze spy photos of the Ford Mach E electric crossover. They also honor the memory of the godfather of spy photography, Jim Dunne. Finally, they talk about driving the BMW Z4, Ram 1500 EcoDiesel, and another diesel, the diesel-powered Mazda CX-5 Skyactiv-D. Autoblog Podcast #592 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Audi RS6 Avant headed to U.S. Lincoln Continental discontinued Rumor: Toyota Land Cruiser to be canceled Ford Mach E spied RIP spy photographer Jim Dunne Cars we're driving: 2019 BMW Z4 sDrive30i 2020 Ram 1500 EcoDiesel 2019 Mazda CX-5 Diesel Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:      

2015 Audi A3 TDI Challenge

I officially gave up after 758 miles. The 15 or so miles leading up to this decision were spent in the right lane of Southern California's I-8 freeway, hazard lights blinking, climbing uphill at just over 40 miles per hour. After two days of sweating to the oldies (okay, a mix of SiriusXM Classic Rewind and First Wave), I had covered those 758 miles in a 2015 Audi A3 TDI on one tank of diesel fuel. And when I say sweating, I mean it quite literally. In order to maximize fuel efficiency, my co-driver and I kept the air conditioning off, even when the direct sunlight in the California desert had outside temperatures hovering around 90 degrees. I had been doing this hypermiling exercise for two days, the car was getting stinky, and I was ready to hear the sweet "thhhhhhhwack" of satisfaction that would finally come from peeling my sweat-soaked self off the A3's leather seat. Sexy, I know.
Audi had challenged me to drive 834 miles from Albuquerque, NM to San Diego, CA, on just one 13.2-gallon tank of diesel fuel. If you believe the EPA's highway fuel economy rating of 43 miles per gallon, this means I should have sputtered to a stop after 568 miles. But I went a grand total of 758 - that's 59.4 mpg - and I could have kept going. In fact, two teams made it the full 834 miles on their one allotted tank of fuel. That's over 63 mpg. That's twenty miles per gallon better than EPA estimates.
The TDI Challenge took me through three states over the course of two days, and the 834-mile journey wasn't just a simple highway cruise. I negotiated uphill climbs, long series of involving switchbacks through the mountains and elevations that ranged from 220 feet below sea level to nearly 8,000 feet above. I learned that super-crazy-efficient driving like this an incredibly challenging game that takes serious skill. But I also learned that if you're going to attempt to stomp all over the EPA's numbers, the Audi A3 TDI is one heck of a car for the journey.