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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 promises Super Bowl surprise with Dog Show teaser

Last month, Audi announced that it would focus its Super Bowl XLVIII airtime on its new 2015 A3, but a new teaser video promises "something unexpected." Even though there's not so much as a single car in this 20-second teaser, we don't doubt that Audi has created an interesting and creative commercial based on what we've seen in recent Super Bowl ads from the automaker.
While we don't exactly see what could be scary or unexpected about the A3 (or even the S3), there is still the chance that Audi has something up its advertising sleeve for the Big Game. We only have to wait a couple more weeks to find out for sure, but in the meantime, the short video is posted below.

Audi celebrates original RS with RS4 Avant Nogaro selection

It's been 20 years since Audi unveiled the RS2 Avant, the progenitor of an entire range of ridiculously fun luxury cars, including the RS3, three generations of the RS4, three generations of RS6, the RS5, and new RS7 and RS Q3. In honor of the anniversary, Audi is paying tribute to the Porsche-fettled wagon by releasing a special edition of its modern-day counterpart, the RS4 Avant.
Called the RS4 Nogaro selection, it sports vibrant Nogaro Blue paint, which is similar to the RS2's signature color. The twin oval exhaust, window frames, and grille surround are finished in gloss black, while the roof rails are matte black. 20-inch wheels in a V-spoke pattern are the RS4 Nogaro's final exterior tell.
In the cabin, Nogaro Blue Alcantara suede accents are optional on the door panels and seat inners (black suede is also available), while Valcona leather comes standard on the seat outers. The steering wheel, meanwhile, features Nogaro Blue contrast stitching and is wrapped in black leather. Blue threads in the carbon fiber trim and a special-edition shifter round out the interior work on this special edition RS4.