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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

1956 DKW Audi electric van beautifully restored

These days, electric vehicles that make commercial deliveries aren't entirely rare. UPS has a small fleet in California, and at least 5,000 Renault Kangoo Z.E. models are in use by France's national postal service. But the history of this concept is much older. In fact, one of the companies represented by Audi's four rings had an example about 60 years ago. Audi Tradition just completed a full restoration of this blue 1956 DKW Elektro-Wagen to add to the company's collection of historic vehicles. It's quite a rare find because only two are still known to exist. Audi estimates that DKW built about 100 of these electric vans between 1955 and 1962, and they were primarily sold to energy companies, public utilities and battery makers. To create the EV model, DKW took its normal Schnellaster delivery van and replaced the model's two-stroke engine with an electric drivetrain. The vans weren't exactly speedy, though. The motor produced about 6.7 horsepower and lead-acid batteries offered 200 amp hours of power running at 80 volts. It gave the Elektro-Wagen a claimed range of about 50 miles and a 25 mile-per-hour top speed. Following the restoration, Audi took van to the island of Wangerooge in the North Sea to show it off. The location is perfect, too, because vehicles with internal combustion engines are banned on the island. If you can read German, feel free to find out more in the press release below. „DKW Elektro-Wagen" zu Audi heimgekehrt Einen von zwei verbliebenen DKW Elektro Schnellaster restauriert Klein-Bus einst auf der Nordseeinsel Wangerooge im Einsatz Audi Tradition prasentiert einen aussergewohnlichen Neuzugang in seiner historischen Sammlung: einen „DKW Elektro-Wagen" von 1956. Zwischen 1955 und 1962 produzierte die Auto Union GmbH in Ingolstadt DKW Schnellaster – etwa 100 davon als Elektro-Automobile, die das Unternehmen vor allem an Energieunternehmen, Stadtwerke oder Batteriehersteller verkaufte. Bei dem nun nach aufwandiger Restauration „heimgekehrten" Elektro-Schnellaster handelt es sich um ein besonderes Exponat: Der DKW fuhr auf der Nordseeinsel Wangerooge, wo Automobile mit Verbrennungsmotoren verboten sind. Normalerweise war der DKW Schnellaster mit einem Zweitaktmotor ausgestattet - der „Elektro-Wagen" hingegen mit einem funf Kilowatt (kw) leistenden Reihenschluss-Motor. Die seitlich in zwei Kasten gelagerten Bleibatterien hatten eine Nennspannung von 80 Volt und eine Kapazitat von 200 Amperestunden (AH).

BMW considering building 3 Series in North America

There might be even more BMWs coming from North America soon. The company recently announced plans to build a flagship crossover called the X7 at its Spartanburg, SC, factory. Now, rumors are emerging that the Bavarians might be thinking about building a second North American factory that could build its quick-selling 3 Series.
According to Bloomberg, the German luxury giant is considering several possible locations for a North American factory, including two in Mexico, that may build the 3. "We will decide this in the next months. On the North American continent, there's still potential," said BMW production boss, Harald Krueger, in an interview meant for company staff obtained by Bloomberg.
If BMW decides to open a plant in Mexico, it would be following its rival Audi, which already announced construction of a factory there. Mercedes-Benz has been rumored to be working on a deal with Nissan to build its cars South of the Border as well. Rumors of Bimmer considering Mexican production have also cropped up in the past, so it wouldn't come as a total surprise to hear it made official.