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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

Porsche considering turbo for new GT3 RS [w/poll]

Some automakers make one hardcore version of a sports car and are done with it. Or at least they make one at a time. Think Ferrari 458 Speciale, Lamborghini Gallardo Superleggera (or Super Trofeo Stradale or Squadra Corse) or Maserati GranTurismo MC. But not Porsche. It transforms the 911 into the hard-core GT3, the even harder-core GT3 RS, the you've-got-to-be-psychotic GT2 and the do-you-have-a-death-wish GT2 RS. The RS models take things to a further extreme, but what separates GT3 from GT2 models has traditionally been the use of foced induction: GT3s are naturally aspirated, while GT2s go turbo. But that could all be about to change.
According to the rumors making their round of the webosphere, Porsche is considering using a turbocharged engine for the next GT3 RS. The reason is that, as we all know, Porsche has already pushed the 3.8-liter flat-six in the existing GT3 about as far as it can go, and then some. And buyers expect not only a more bare-bones package with the GT3 RS, but also a bit of extra power.
Given that everything seems to be going turbo these days, the move might make some measure of sense, especially if Porsche wants to avoid with the GT3 RS the spontaneous combustion issues it faced with the GT3. But we can't help but wonder why, at that point, it wouldn't just skip the GT3 RS and go straight for the GT2.

Porsche acquires ANDIAL, will integrate with in-house motorsports

Porsche has purchased longtime motorsports and tuning house ANDIAL.
The Fountain Valley, California-based tuning house ANDIAL has been around since 1975, when it was formed by the Arnold Wagner, Dieter Inzenhofer and Alwin Springer (the company got its name by combining two letters from each of their names). The three men met while working in a Porsche dealership in Southern California and then left to start a business that would put Porsches in victory lane all over the country.
Porsches prepared by ANDIAL won IMSA GT and Supercar Series championships, the SCCA World Challenge, four Pikes Peak class titles and the 24 Hours of Daytona six times. Alwin Springer left the company in 1997 to run Porsche Motorsport North America until 2004 and remains a consultant with PMNA, Wagner passed away in 2011 and Inzenhofer plans to retire this year. ANDIAL is still a going concern, Inzenhofer presiding over a scaled-down engine parts and restoration business. But Inzenhofer is retiring at month's end, making it a good time for Porsche to step in and take over the company's operations.