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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's diesel-electric supercar is codenamed 'Scorpion'

Speculation continues as to the final nature of the diesel-hybrid Audi supercar said to arrive in 2016 or 2017. A previous report in Automobile had the halo coupe, based closely on the R18 etron quattro endurance racer, codenamed R20 and pegged to look like a Le Mans winner for the street with around 700 horsepower and 737 pound-feet of torque from a twin-turbo V6. Now Car and Driver has updated the gossip with a report that the car is internally called "Scorpion," and it will be even closer to the R18 than supposed.
CD says the heart of the car will use the R18 etron quattro's carbon fiber tub and its engine will be "taken directly" from the race car. That means a 3.7-liter V6 with a single turbo that, in ACO-spec restricted form, outputs 500 hp and 625 lb-ft - CD suspects production output could get to 600 hp - and drives the rear wheels, aided by hybrid motors driving the front wheels. And remember, at Le Mans the R18's hybrid motors can't kick in until they're above a certain speed in order to prevent Audi from getting an advantage coming out of slow corners. A street car wouldn't face that restriction.
The Scorpion would be a fulsome and undiluted example of the technologies Audi has created during its return to sports car racing. Its exterior design hasn't been finalized, with CD citing either the convoluted concept of "a retro take on the future of racing" or packaging that would adhere to the R18's looks. To make sure it is properly appreciated and sells well, production could be limited to the same 333 units as the R8 GT and A1 Quattro.

2015 Audi A8 and S8 get some new goodies

Luxury car buyers are a demanding bunch. They've got this crazy notion that just because they're spending the better part of a hundred grand on a top-tier luxury sedan, they should get the very best and the cutting edge of what the industry has to offer. That has tended to come down to the S-Class even when it had grown long in the tooth, and now that Mercedes-Benz has rolled out an all-new version, the competition is falling all over itself to release updates to keep their flagship sedans in the running. Jaguar did that just yesterday with its XJ sedan, and now Audi has revealed the latest revisions to its A8 range.
Set to debut at the Frankfurt show in just a few weeks from now, the latest A8 (and its performance version, the S8) benefits from a series of stylistic, powertrain, and technology upgrades. Among the most prominent, of all things, are the new Matrix LED headlights that can automatically lower the high-beams for oncoming vehicles, with integrated turn signals that light up to point in the direction the driver's about to turn. But that's hardly the end of the story.
Audi has apparently reduced the output on the 3.0-liter supercharged V6 to from 328 horsepower to 310 but raised the 4.0-liter twin-turbo V8 from 414 hp to 435, which now offers a 0-60 run of just 4.5 seconds. That's just three tenths behind the S8, which remains unchanged at 513 hp, as does the 493-hp 6.3-liter W12. The 3.0-liter TDI is up from 247 hp to 258, the 4.2-liter TDI grows from 345 hp to at 385 (with a massive 627 pound-feet of torque to boot) and the hybrid that offers a combined 245 hp and 354 lb-ft. That makes for one massive array of engines globally, although only some of them will be offered Stateside. Each is mated to an eight-speed automatic transmission and Quattro all-wheel drive, but thanks to the A8's lightweight construction, it's lighter than any other all-wheel-drive model in its class.