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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

BMW M2 looks even hotter decked out as MotoGP safety car [w/video]

We didn't think the aggressive BMW M2 could look much better. We were mistaken. Just take a look at this safety car. The new M2 safety car is the latest in a long line of vehicles furnished by BMW to the MotoGP racing series that stretches back to 1999. This model is based on the road-going version, but features a number of upgrades to get it ready for the track. As you can see, it has a fresh take on BMW's signature stripes over white, offset by gold trim. It also wears a low-profile LED strobe light bar on the roof, supplemented by blue LEDs in the front grille and red diodes in place of the reversing lights. The stripped-out cockpit incorporates a roll cage (adapted from the M4 GTS), Recaro racing buckets with six-point harnesses, and an on-board fire extinguisher. BMW also fabricated an adjustable rear wing from carbon-reinforced plastic, and fitted it with Michelin Cup tires and carbon-ceramic brakes. Of course you can't buy the safety car and drive it on the road, but most of the rest of the parts come straight out of the M Performance Parts catalog – and those you can buy. There are aero components like side skirts, front blades, and a rear diffuser, trim pieces in carbon or gloss black, all manner of interior parts, and mechanical bits like an upgraded exhaust system with carbon finishers and a coilover suspension. We're waiting on word regarding US pricing and availability of the M Performance Parts. But in the meantime you can check out the action in the pair of image galleries, the video clip below, and the press releases at bottom. BMW M – OFFICIAL CAR OF MotoGP™. BMW M2 MotoGP SAFETY CAR. MotoGP and BMW M Division: these two partners have formed an ideal combination for almost two decades. MotoGP is the pinnacle of motorcycle racing and features the best riders in the world on high-performance racing prototypes, in the development of which the manufacturers implement their latest technological ideas. High-performance and motorsport genes – attributes, with which BMW M Division is also synonymous. Since 1999, BMW M has been a permanent member of the international MotoGP family. The successful partnership with organiser Dorna Sports has grown consistently over the years, and is set to continue to run well into the future. In 2014, Dorna Sports and BMW M Division extended their cooperation up to and including 2020. Partnerships like this, which span decades, are extremely rare in top-class international sport.

BMW expands Takata airbag recall nationwide, 140k 3 Series affected

Following the urging of the National Highway Traffic Safety Administration, BMW has expanded its recall of vehicles equipped with Takata airbag inflators to cover the entirety of the United States, rather than just high-humidity areas. That means there are about 140,000 owners of 2004 to 2006 model year BMW 3 Series coupes, convertibles, sedans and wagons (that means owners of both E46 and E90 3ers should take note). It's unclear if this recall includes the high-performance M3 Coupe and Convertible. With the expansion of its airbag recall, BMW joins Honda, Mazda, Ford and Fiat Chrysler in moving from a regional to a nationwide recall of vehicles equipped with Takata airbags. According to Reuters, BMW claims none of its vehicles have been subject to the potentially harmful airbag deployments.