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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 unveils its Doberhuahua Super Bowl commercial

With Super Bowl Sunday less than a week away, this week is going to be dominated by anything and everything football related. That includes advertising and the auto industry, as some of the biggest players prepare to launch multi-million-dollar spots hawking their latest and greatest products.
A veteran of Super Bowl ads, Audi's history has been rather checkered, ranging from controversial to funny to Jason Statham. We aren't entirely sure where to place this year's ad. The German brand has released a pair of teaser videos on the so-called Doberhuahua, a crossbreed of a Doberman Pinscher and a Chihuahua. Now, we have the full spot.
We get the message Audi is going for - compromise is bad - but delivering it via a slobbery, mutant dog strikes us as trying a bit too hard to be funny. Take a look below and let us know what you think of the Audi's Doberhuahua spot. And of course, you'll be able to see the new ad come Sunday, when it airs during the Super Bowl.

2016 Audi TTS

We recently drove the Audi TT, and although we wish it were radically entertaining instead of merely very fun, it's nevertheless a sharp coupe that vaults ahead of its predecessor with an inspired interior and eager handling. That car will be precursor to this TTS when it gets here a year from now, with the TTS adding adjectives like "more" and "better" to just about everything found on the base coupe. With the standard car having already put on such a fine edge, we wheeled the TTS on Spanish roads and at the Ascari race track to find out how much better and higher-performing the S will be.
Driving Notes
As of this writing, today's TTS commands an $8,350 premium over the TT. Assuming a commensurate gap is carried over into this next generation model, that supplemental dosh will get you 310 horsepower and 280 pound-feet of torque instead of 230 hp and 273 lb-ft in the standard TT. That would mean more for your money, too, since the gap between the current TT and TTS is 54 hp and zero lb-ft of torque. To achieve the new numbers, the 2.0 TSFI engine from the TTS benefits from upgrades like sturdier valves, revised aluminum pistons and stronger connecting rods with new bearings, a reinforced crankshaft and a high-performance intercooler. The amplified brawn rips 0.7 seconds off the 0-60 mile-per-hour time, getting you there in 4.6 seconds.