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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

Next-gen Audi R8 E-Tron could have 280-mile range

Will the next hypermiling contest take place between the latest iteration of the Audi R8 E-Tron and a Tesla Model S. On paper, the single-charge range between the high- and higher-end EVs are nearly identical, so it's possible. But what fun would that be, using light pedal foot and all? Audi has released the latest specs for the R8 E-Tron, and they are just beastly. The EV will deliver 456 horsepower, have 679 pound-feet of torque and will be able to jet from 0 to 60 miles per hour in less than four seconds. More stunningly, the car will have a single-charge range of 280 miles, which is about 15 miles longer than the Model S's range. Audi says the new, long-distance pack is due to " new battery cells," but declined to go into detail. Despite the excellent numbers, not everyone thinks a new R8 E-Tron poses any threat to Tesla. Prices for the "base" version of the R8 with a gas-powered V10 engine start at 165,000 euros ($185,000), and there's no guessing yet what an EV version will cost. Whatever it is, the car's been markedly improved compared to the earlier iterations. We reported on progress of the new R8 E-Tron about a year ago that the single-charge range would climb to about 250 miles, and that the mill would deliver about 376 horsepower. Audi first showed off a concept version of the car at 2009's Frankfurt Auto Show, saying at the time that the model had a single-charge range of about 150 miles. So this is good progress. Check out Audi's rather lengthy press release below. Audi presents the new R8: The sporty spearhead just got even sharper The second generation of the high-performance sports car makes its debut in Geneva 5.2 FSI engine with up to 449 kW (610 hp), 0 to 100 km/h (62.1 mph) in 3.2 seconds New multimaterial Audi Space Frame with high proportions of aluminum and CFRP No model with the four rings is closer to motorsport, none is more striking and more dynamic: at the Geneva Motor Show, Audi is presenting the second generation of its high-performance R8 sports car. The V10 mid-engine and a newly developed quattro drive ensure breathtaking driving performance, especially in the top-of-the-range version with 449 kW (610 hp): achieving 0 to 100 km/h (62.1 mph) in just 3.2 seconds, its top speed is 330 km/h (205.1 mph).

Audi kicks off A3 celebrity-fest marketing campaign with Dues

Audi is desperate to appeal to young people with its new 2015 A3 sedan. It's planning launch parties around the country to present the new model to these younger buyers, and its latest tactic is a series of videos starring celebrities the company considers trailblazers to further captivate youthful buyers.
The advertising campaign starts with a spot titled Dues starring comedian Ricky Gervais, chef David Chang, photo journalist Lynsey Addario, comedian Kristen Schaal, boxer Claressa Shields, artist collective Cyrcle, and church choir Voices of Destiny. It's being followed up with seven, minute-long online documentaries called Uncompromised Portraits about the folks featured in the new ad. Audi believes that they are all trailblazers who have forged their own way, and it's all supposed to fit with the A3's slogan of "Stay Uncompromised."
Dues will play during the NCAA March Madness tournament. Audi is also running two, 30-second commercials during the games to highlight the sedan's technology and two, 15-second ads to promote its Quattro all-wheel-drive system.