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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

Best and worst car brands of 2022 according to Consumer Reports

It's that time again, Consumer Reports this morning lifting the curtain on its 2022 Annual Car Brand rankings and its 10 Top Picks in the car, crossover, and truck category. Drumroll, please: This year, Subaru climbs two spots to claim the winner's circle, having come third the last two years. Last year, Mazda climbed three spots from 2020 to take the crown. This year, Mazda slipped to second, BMW taking the last spot on the podium, also a one-spot drop from 2021. Six automakers in the top 10 hailed from Japan, which is one more than last year, and five luxury makers occupied the top 10, which is two more than last year. And South Korean representation didn't crack the top this year, after Hyundai managed tenth last year. The seven makes after BMW are: Honda, Lexus, Audi, Porsche, Mini, Toyota, and Infiniti.  The magazine and testing concern says its Brand Report Card "[reveals] which automakers are producing the most well-performing, safe, and reliable vehicles based on CR’s independent testing and member surveys," and that "Brands that rise to the top tend to have the most consistent performance across their model lineups." The domestics also took steps back among the 32 OEMs ranked on the 2022 card. Chrysler and Buick were the domestic carmakers who made last year's top 10 in eighth and ninth, respectively. This year, Buick dropped to eleventh, Chrysler to thirteenth. Dodge went from fourteenth to sixteenth. CR continues to ding Tesla's yoke steerer, the not-exactly-natural handhold responsible for the electric carmaker going from sixteenth last year to twenty-third this year.

Editors' Picks June 2023: BMW 3 Series and more luxury sport sedans

This month sees a number of luxury sport sedans gain Editors' Pick status thanks to updated or recently-all-new models coming out. The BMW 3 Series is a longtime favorite, and so is the Alfa Romeo Giulia at this point. Just like the electric version of the G80, though, the gasoline version is also an Editors' Pick this month. In case you missed our previous Editors' Picks posts, here’s a quick refresher on whatÂ’s going on here. We rate all the new cars we drive with a 1-10 score. Cars that are exemplary in their respective segments get an EditorsÂ’ Pick designation. Those are the ones weÂ’d recommend to our friends, family and anybody whoÂ’s curious and asks the question. The list that youÂ’ll find below consists of every car we rated in May that earned an EditorsÂ’ Pick. 2023 BMW 3 Series 2023 BMW 3 Series View 15 Photos Quick take: The 3 Series may not be the standard anymore, but it's still a superb luxury sport sedan with powerful engines, great handling, impressive tech and tons of space. Score: 7.5 What it competes with: Mercedes-Benz C-Class, Audi A4, Alfa Romeo Giulia, Cadillac CT4, Acura TLX, Lexus IS, Infiniti Q50, Genesis G70, Volvo S60 Pros: Enjoyable and powerful engines; fun handling; lots of space in rear seat and cargo area; attractive design inside and out Cons: Infotainment is frustrating to use sometimes; value isn't the best From the editors: Road Test Editor Zac Palmer — "The 3 Series ticks all the boxes that a top-shelf luxury sport sedan should. It's attractive but not gaudy. The driving dynamics leave me grinning at the end of a fun road, but don't beat me up on the highway. Any and all modern tech is present and accounted for. And while the price is high, it's not so bad for what you get. I'm an especially big fan of the M340i with its inline-six, but the four-cylinder in the 330i is an excellent option if you don't want to spend as much." In-depth analysis: 2023 BMW 3 Series gets fresh styling and infotainment   2023 Genesis G80 2022 Genesis G80 Sport Prestige View 61 Photos Quick take: The G80 has looks to kill, and it backs that design up with a functional and also-gorgeous interior. There's a lot of value to be had with this nice-to-drive luxury sedan.