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China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

2016 BMW 7 Series First Drive [w/video]

Flagships demonstrate strength. "This is what we can do," these cars say with emphasis. Since 1977, the 7 Series has been a rolling showcase of BMW's capability. Sure, BMW makes racecars, but the mighty 7 is a proud reminder that the Roundel also stands for luxury. Except the 7 Series has been eclipsed by the Mercedes-Benz S-Class, a technological tour de force that Mercedes haughtily calls the industry's flagship. BMW makes a pretty nice car, but no one would dare call it that. Bimmer should probably just lower the flag, right? Not yet. Most of history's famous flagships have been fighting machines. They exude confidence, but also pack a punch. And with the 2016 7 Series, BMW is unleashing a broadside on Mercedes and the rest of the industry. Rather than raw power, the sixth generation of the iconic 7 Series is loaded with sophisticated technology that makes the new sedan more luxurious and comfortable. While it looks familiar from the outside, most of the improvements are in the cabin or under the skin. Things like the carbon fiber used for the passenger cell that help the 7 Series shed 190 pounds compared to its predecessor. Or the touchless gesture control that allows you to accept or decline phone calls with simple hand motions. Even the infotainment system is better, with a pinch-to-zoom feature that makes iDrive less confusing and more like the user-friendly iPad. BMW is unleashing a broadside on Mercedes and the rest of the industry. It's a lot of high tech stuff, but the driving experience is still the top priority for BMW. To test its mettle, we traveled to the Monticello Motor Club in rural New York. After several hot laps on the road course (more on that later) we slip behind the wheel of an Arctic Gray Metallic 750i xDrive for some public road driving. The big sedan immediately masks its size on the twisting rural state routes. With 445 twin-turbo V8 horsepower urging us forward, we barrel ahead as the countryside blurs by. Once we settle into a relaxed, legal pace and get our bearings inside the car, we check out some of the new tech. The gesture control is easy to activate while driving, and with a twirl of a finger we turn up the silky-sounding Bowers & Wilkins system. Gestures actually work as advertised. No one calls us, but during an earlier demonstration we were able to decline a call with a dismissive backhand. It felt good.

BMW to pay $1.6M, rehire workers in discrimination settlement

A BMW subsidiary is on the hook for $1.6 million and must rehire workers as part of a settlement for a race discrimination lawsuit with the US Equal Employment Opportunity Commission. A change in BMW Manufacturing's criminal background check policy at the Spartanburg, SC, factory disproportionately affected African American workers, according to the EEOC, and it cost many people their jobs. The automaker has since changed the policy. According to Automotive News, the suit stemmed from BMW switching logistics contractors at the plant in 2008. As a result, 645 existing workers had to submit revised criminal background checks to keep their jobs. About 100 people didn't meet the new guidelines, according to the EEOC, and they lost their jobs. Around 80 percent of those affected were African American. According to the government agency's complaint, the altered procedures only took into account the category of a crime, not factors like when it occurred or whether the infraction was a misdemeanor or felony. With the settlement accepted by US District Court, BMW must offer work to the affected employees in this case and as many as 90 African American applicants that the contractor didn't hire because of the rules. The automaker also must offer training in the proper manner for criminal background checks. While there's nothing inherently wrong with investigating workers, "when a criminal background screen results in the disproportionate exclusion of African-Americans from job opportunities, the employer must evaluate whether the policy is job related and consistent with a business necessity," P. David Lopez, the EEOC's General Counsel, said in the agency's release, which you can read below. BMW to Pay $1.6 Million and Offer Jobs to Settle Federal Race Discrimination Lawsuit Company's Criminal Background Policy Disproportionately Affected African-American Logistics Workers, EEOC Charged GREENVILLE, S.C. - The U.S. District Court for the District of South Carolina today entered a consent decree ordering BMW Manufacturing Co., LLC (BMW) to pay $1.6 million and provide job opportunities to alleged victims of race discrimination as part of the resolution of a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).