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BMW won't bring front-drive 2 Series tourers to US

BMW may have rolled out a new front-drive 2 Series in overseas markets, but according to the latest from Automotive News, it won't be bringing it to the United States anytime soon. The model line consists of the 2 Series Active Tourer – the company's first front-drive model – and its extended counterpart, the 2 Series Gran Tourer, which was introduced just last week at the Geneva Motor Show. Though available with all-wheel drive, their front-drive underpinnings make them a radical departure for the Bavarian automaker, which has made a name for itself on rear-drive architecture. The development is not unlike the path which Mercedes has pursued with models like the A-Class hatchback, B-Class minivan, CLA four-door coupe and GLA crossover. BMW evidently thinks, however, that even in its longer Gran Tourer form, the 2 Series hatchback is still too small for the US market, where minivans have grown far beyond their miniature dimensions. The 2 Series name will continue to be offered on the rear-drive coupe and convertible that were spun off of the 1 Series and which are unrelated to the front-drive hatchback and minivan. The X1, however, is slated to switch to the front-drive platform shared with the company's Mini brand.

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

BMW i3 qualifies for both green and white HOV stickers in California

BMW buyers tend to have enough cash on hand to be buffered from the concept of "sticker shock," but the term may take on a different meaning when it comes to the German automaker's i3 plug-in vehicle and its classification by California clean-air regulators. The first i3 EVs are set to be sold in May, and some are questioning if the new car will be eligible for the state's white stickers or green High-Occupancy Vehicle lane stickers, both of which allow for solo-occupancy in HOV lanes. California gives out white stickers to some types of battery-electric vehicles, compressed natural gas (CNG) vehicles and hydrogen fuel-cell vehicles, and there's currently no limit on the number that can be given out. The green stickers, which are applied to other battery electrics as well as some plug-in hybrids, are limited (there are currently about 15,000 left) and will likely run out within the next year or two. The i3's status is uncertain because of it has an optional gas-powered range-extender. Jacob Harb, head of electric vehicle operations and strategy for BMW, told AutoblogGreen that it's not all that complicated. The pure electric version of the i3 will get the white sticker, the REx version will get the green sticker. He also said that both will qualify for the $2,500 state incentive in California and the $7,500 federal tax credit available in all 50 states (For what it's worth, Green Car Reports says the REx version will only get $1,500 from California). Read Autoblog's First Drive impressions of the i3 here.