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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

The Homer to contest 24 Hours of LeMons

It's finally happened. A 24 Hours of LeMons team has built the definitive interpretation of The Homer from The Simpsons for competition in an upcoming race. As you may recollect, The Homer is the fictional car designed by Homer Simpson for his brother's car company. Designed with a separate compartment for screaming children and other Homer-centric goodies, the animated machine bankrupted its parent company and put Homer's brother out of a job. Now we get to watch it race other crap cans as it tackles Southern California's Buttonwillow Raceway on June 29. Scott Chamberlain, Kris Linquist, Reid Conti, Ben Reilly and Mike Yepes will helm the machine, and Jeff Herman serves as the team's creative director.
The racer is the latest incarnation of a well-abused BMW 3 Series. The team campaigned the same E30 under the "Prickstine" banner as a Chrysler Imperial tribute and "Porcubimmer," the latter being a riff on the ever-popular joke about the difference between porcupines and BMW models. Never gets old. You can check out a video of the finished Homer below, and be sure to like the team on Facebook to see updates from the race. Now, about that Canyonero...

Alex Zanardi back in the driver's seat with BMW

If there's ever been an inspirational story in the pantheon of motor racing history, surely it's that of Alessandro Zanardi. The Italian driver worked his way up the motor racing ladder, making it into Formula One and winning two CART championships for Chip Ganassi Racing back before the series re-merged into IndyCars. Tragedy struck in 2001 when he lost both his legs in a crash at the Lausitzring in Germany, but rather than accept his fate, Alex pushed on. Fitted with prosthetic limbs, he learned to drive a racing car with hand controls and got back in the driver's seat.
Zanardi drove for BMW in the European Touring Car Championship and then in the World Touring Car Championship that replaced it, landing on the podium several times despite his physical disadvantage. He left racing in 2009 to train for the Paralympics, winning two gold medals in London, but Alex apparently couldn't shake the racing bug. BMW modified one of its M3 DTM racers with hand controls for him to test later that year. And now he's returning to motor racing full time.
BMW has just announced that Zanardi will be driving a Z4 GT3 in the Blancpain Sprint Series, the successor to the FIA GT Series and short-distance counterpart to the Blancpain Endurance Series. The car has been modified with the hand controls the Bavarian automaker's racing department fitted to the aforementioned M3 DTM and will be fielded by the ROAL Motorsport team with which Alex challenged for the European Touring Car Championship last decade.