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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 A3 Sportback e-tron gets top grades in European crash tests [w/video]

In simplistic terms, the Audi A3 Sportback e-tron plug-in hybrid will go real far when it needs to go and stop when it needs to stop. The PHEV has now been certified to protect its occupants when they need to be protected. So there's not much more that you can ask from a vehicle. The model received a maximum five-star crash-test rating from the Euro NCAP group, receiving top marks for front, side and rear collisions. The Audi also received kudos for the "multi collision brake assist" feature, which automatically engages the brakes once the car's been in a crash so that it doesn't get into another one. The plug-in hybrid was already getting positive responses from prospective customers. Last month, Audi said it stepped up its production of the model at its German factory from 30 units a day to 50. The PHEV can travel up to 30 miles on electricity alone and another 550 miles on a full tank of gas. More impressively, it has a 157 miles per gallon equivalent (MPGe) rating, using the European driving cycle. Check out a video of the test and Audi's press release below and read our driving impressions here. Five stars for the Audi A3 Sportback e-tron from Euro NCAP Top marks in the front, side and rear collision categories The new Audi A3 Sportback e-tron also offers a high level of safety for children Special prize for Audi pre sense basic and multicollision brake assist system Ingolstadt, December 10, 2014 – The Euro NCAP consortium has awarded the new Audi A3 Sportback e-tron* the maximum five star rating for crash safety. This puts the first volume production plug in hybrid from Audi among the safest cars in its class. The test panel was impressed by the Audi A3 Sportback e-tron across the board: As a result the plug-in hybrid earned top marks in protecting adults and children in a front, side or rear collision. The model also passed tests of its pedestrian protection with flying colors. This year Euro NCAP additionally tested assistance systems for the first time. The A3 Sportback e-tron with Audi pre sense front and Audi active lane assist also fulfilled the stringent requirements in this category. The model received the special "Euro NCAP advanced" prize for its Audi pre sense basic passenger protection system as well as for the Audi multicollision brake assist system that comes as standard equipment. This function initiates braking automatically in case of an accident to reduce the risk of skidding and the danger of a subsequent collision.

Audi imagines a world where mechanics are zombies

Warewolves, vampires, lab-created monsters... they've all come and gone from the silver screen, but the latest trend in apocalyptic popular media centers around zombies. And that's the theme Audi has tapped for its latest ad. The television commercial is called "Mechanics," and as you may have guessed by now, they're the zombies the German automaker is depicting. The spot was created to encourage Audi owners (like the one in this A5) to have their vehicles serviced at authorized dealers rather than taking them to independent garages that may not be after your brains, but might like a crack at your pocket book, at least (as if dealerships aren't). The commercial was created for Audi by Thjnk Berlin GmbH and directed by Sebastian Strasser for RadicalMedia, and is worth a watch for the laugh alone. Related Video: