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Will global automakers drop local JV partners if China's government says they can?

Chinese economic policies could be in for a big change, as President Xi Jinping pushes the communist country to open its domestic markets even further. That could mean big things for the auto industry, especially when it comes to the country's far-reaching joint-venture system.
According to Chinese law, foreign automakers may only maintain a fifty-fifty partnership with their domestic counterparts. But with Jinping's push for openness leading to potential free-trade deals, that policy could be relaxed (or eradicated all together) in short order. What's an automaker to do?
Well, in BMW's case, stay the course. Automotive News Europe reports that, despite the grumblings about the JV policy changes, the German manufacturer has resigned its agreement with Brilliance through 2028. This is made doubly remarkable by the fact that BMW signed the extension over three years before it was set to expire.

Recharge Wrap-up: E15 could help smog woes, MPG average at all-time high

A new study shows that using an E15 blend instead of regular gasoline would reduce smog in Chicago. Increasing the availability of the 15-percent ethanol blend could help reduce carcinogenic air pollution and improve air quality, particularly on the city's South Side. The study found that E15 reduces the risk of cancer by 6.6 percent. It also reduces greenhouse gas emissions 1.5 percent compared to a 10-percent ethanol blend. Read more at Domestic Fuel. Fairmont Beijing is offering hotel guests a chance to experience BMW's i cars. For the next three months, guests needing airport transfers will be picked up in one of the German automakers electric vehicles. Also, those who choose the hotel's "Passion Package," which includes transportation in one of the cars or on a BMW bike, and a private guided tour of the 789 Arts District and the Peking opera house as well as tickets to an opera performance. Learn more in the press release below. Formula E will host motor shows at the circuits during its race weekends. Visitors will learn about the technology behind the all-electric race series and the racecars, including the safety and performance aspects. The goal of the four-day shows is not only to entertain and educate people, but also to generate interest in electric and hybrid vehicles in hopes that drivers will consider adopting electric cars themselves. Read more at Formula E's website. The average fuel economy of new vehicles has reached a new high of 25.8 miles per gallon, according to the University of Michigan. The school's Transportation Research Institute (UMTRI) used the window sticker ratings of the vehicles to reach that number for the month of August. That's 0.2 mpg higher than July, and 5.7 mpg higher than October 2007, when UMTRI began recording the data. The group also found that average emissions per driver are down by 22 percent since October 2007. Read more at Green Car Congress. The United States Advanced Battery Consortium has awarded a $667,452 development contract to battery maker Xerion. The contract - a 50-percent cost share co-funded by the US Department of Energy - is for a 15-month program to develop next-generation batteries for plug-in hybrids. Read more in the press release below. Fairmont Beijing Introduces Eco-friendly Partnership with BMW's New Electric i Series BEIJING, Sept. 4, 2014 /PRNewswire/ -- Fairmont Beijing is partnering with BMW in a showcase of the luxury carmaker's new electric, environment-friendly i Series.

BMW reveals M4 safety car with innovating water injection system [w/video]

Racing series don't just pick their safety cars at random, or use just whatever car is lying around. These days the car that sets the pace at the front of the pack is typically provided through consideration by a sponsor. In the MotoGP series, that's BMW and its M division, which have served up the Official Car of MotoGP since 1999. What you're looking at is the latest, and it packs some innovative technology on board. Aside from the matte black wrap with BMW's iconic striped livery, upgraded aero kit, retrofitted interior and emergency equipment, this BMW M4 coupe packs a new injection system under the hood. Only instead of injecting fuel, it injects water into the combustion chamber – something that wouldn't usually be recommended, but BMW insists actually aids in the combustion process. The idea is that the temperature of the air being mixed with the fuel inside the engine is usually hotter than ideal, so the system injects a fine mist of water into the collector in order to reduce the air's temperature... sort of like one of those hydrating misters at an amusement park or outdoor mall, but in an even hotter environment. The system brings the temperature of the air down to a more optimal temperature, helping it combust better. The process is said to yield a number of positive effects. For one, it reduces knocking. For another, it can make more out of lower-octane fuel where higher octane isn't available. It also can control the adverse effects of higher ambient temperature on the combustion process. But most of all, it increases output and reduce fuel consumption by around eight percent. Whether that eight percent is worth the added weight of the system – particularly with water pump and a 1.3-gallon tank in the trunk – is up for debate. But we'd imagine that the Bavarian engineers have weighed very carefully. Of course there's also the matter of refilling the water tank, which BMW says would be carried out whenever the safety car is refueled, but in real-world conditions would only necessitate attention once every five top-ups at the gas station. By now you might have guessed that BMW probably didn't develop this system just for the MotoGP safety car, and isn't planning on keeping it confined to the racetrack. Instead it's being tested and demonstrated on the safety car before being rolled out on production models in the future.