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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

Top Gear names BMW i8 Car of the Year, Corvette, Ferrari, Mercedes also win big

The lads at Top Gear have released their listing of the finest cars of the past year, handing the ultimate honor to BMW's revolutionary i8 plug-in-hybrid supercar. "The i8 is a milestone in the annals of automotive history and a glorious statement for an exciting and positive future. The i8 delivers - and then some," the British mag wrote. The i8, though, was far from the only hybridized car to take victories. James May and Richard Hammond both highlighted hybrids as their personal cars of the year, with May saluting the Ferrari LaFerrari and the Hamster, unsurprisingly, heaping praise on the Porsche 918 Spyder. Jeremy Clarkson, meanwhile, opted to shock many by selecting not only an American car as his best of 2014, but giving the honor to of all things, a Corvette. Clarkson wasn't the only person to honor the USA's iconic sports car, with the new, 650-horsepower Z06 variant being named TG's Muscle Car of the Year. Other big winners include Mercedes-Benz, which TG honored for S-Class Coupe (Luxury Car of the Year), the new AMG GT (Sports Car of the Year) and the not-for-US C-Class Estate (Family Car of the Year). The 458 Italia Speciale A snagged a second win for Ferrari. The best of the rest include the Citroen C4 Cactus, Renault Twingo, Volkswagen Golf R, Lamborghini Huracan and Audi TT. Take a look below for the celebratory press blast from BMW. The BMW i8 wins Top Gear Car of the Year The BMW i8 has been named as Top Gear magazine's global Car of the Year 2014. The plug-in hybrid performance vehicle beat off some stiff competition from a host of other premium and luxury manufacturers to win the overall award. The editorial team of Top Gear commended the BMW i8 for its breadth of abilities. Its 1.5-litre three-cylinder turbocharged petrol engine combined with an electric motor gives searing acceleration and driver enjoyment but all wrapped in a package that takes BMW's EfficientDynamics philosophy to the extreme courtesy of CO2 emissions less than 49g/km and a 135mpg combined cycle figure. Charlie Turner, Editor in Chief at Top Gear magazine, said: "The BMW is a milestone in the annals of automotive history and a glorious statement for an exciting and positive future. The i8 delivers – and then some. It's the kind of car we should celebrate, a beautiful vision of the future, delivered now.

Mini Vision Next 100 Concept: It's the autonomy, stupid

The concepts that Mini and Rolls-Royce showed off today – the Vision Next 100 Concept and 103EX, respectively – are all about autonomy. The Rolls-Royce doesn't even have a place for a "driver." And even though both are very much blue sky concepts, corporate parent BMW thinks it will make fully-autonomous cars within the next five years. That's according to Peter Schwarzenbauer, Member of the Board of Management of BMW AG, MINI, BMW Motorrad, Rolls-Royce, and Aftersales BMW Group, who also told us that both cars, at least in concept, are fully electric. The Rolls-Royce has dual-drive, 250kw motors mounted fore-and aft, on front and rear axles. While the Rolls is clearly a luxury concept for the monied few, the Mini is very much focused on a shared economy. Holger Hampf, Head of User Experience, BMW Group, said the chief design challenge of a car-sharing world is producing a car that could in theory mean different things to different borrowers. You get exclusivity because each car would morph according to the borrower's desires. BMW/Mini already have a car-sharing program in London called DriveNow, and a pilot program in Seattle called ReachNow, focused on the idea of shared exclusivity. ReachNow, which allows Mini/BMW owners to lend their cars out in an AirBnB-type scheme or to borrow "fleet-style cars," are immutable – however the car that was ordered is what the borrower or the owner will get. That's great if you're the owner, but it's also challenging for both anyone who'd buy that car used or for anyone borrowing the car. And if the future of most cars is a shared model (Ford is now offering multi-person leases among up to six buyers in a pilot program in Austin, Texas), customization is impossible. The result is what Schwarzenbauer derogatorily calls "normed." He says carmakers have to relearn to brand for a world where ownership is devalued but customization is key. To that end the MINI VISION NEXT 100 is "skinned." We've seen this before with the BMW NEXT concept that was revealed at the NY Auto Show this past spring, and the idea is to use the exterior of the car as a canvass that changes according to setting. Indeed Mini envisions that in a multi-driver household, the vehicle's customization could easily include changing colors according to driver preference – automatically. Dr.