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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 Classic puts modern navigation in older cars [w/video]

People drive classic vehicles for many, many reasons. Maybe it's because they're cool, or they bring back memories, or perhaps they just want to take a trip back in time, before the days of adaptive cruise control, massaging seats and satellite navigation. You know, back to when driving was about, well, driving. Someone did not mention this reasoning to Porsche, because the German company has decided to offer the tiniest, most ridiculous in-dash navigation system we've ever laid eyes on, through its Porsche Classic line. Because, you know, people don't own smartphones nowadays. In fact, most smartphones are significantly bigger than Porsche's new nav setup. The touchscreen is just 3.5 inches in size, although its graphical layout is clean and in line with the company's more modern offerings. It also integrates a new entertainment system, which adds Bluetooth connectivity and a 4x45 watt amp. The system is being offered for a wide array of vintage Porsches, ranging from the most modern, air-cooled 993s, all the way back to the earliest 911. Four-cylinder and V8 models, as well as front and mid-engine cars, can be fitted with the nav system, too. Porsche Classic has priced the new system at the frankly absurd price of 1,184 euros ($1,344 at today's rates), though we're sure a large number will indeed be sold and installed. Dedicated US pricing is still pending. Check out Porsche's rather silly video of the system in action, available alongside the full press release below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. PORSCHE CLASSIC BRINGS OUT NEW NAVIGATION RADIO FOR CLASSIC SPORTS CARS True-to-style upgrade with state-of-the-art technology Atlanta. Classic on the outside yet ultra-modern on the inside: with its newly developed navigation radio, Porsche is responding to the growing demand for a built-in device for classic sports cars. The purpose-built unit combines the style of yesteryear with the benefits of modern technology. It fits perfectly into the DIN-1 slot that has been used in the sports cars for decades and is operated by means of two knobs, six discreetly integrated buttons and a touch-sensitive 3.5-inch display. Thanks to the appearance of the black surface and the shape of the knobs, which are supplied in two authentically styled versions as standard, the navigation radio blends harmoniously into the dashboard of classic Porsche models.

2016 Porsche 911 R First Drive

Competition has forced the 911 GT3 RS to prioritize lap times over driving enjoyment. The 911 Carrera line has softened, now full of GT cars rather than the wild children of yore. Turbocharging is hitting the rear-engine Porsche en masse. All of this gave Porsche Motorsport a vacuum of emotion and purity to fill with just 991 examples of its glorious 911 R, a machine focused on putting unadulterated feel and enjoyment back into driving. Even amongst the diehard Porsche fraternity, just going faster doesn't work for everybody. They don't all want the thrill that comes from a high-downforce car running out of grip inches from a concrete wall. Not everybody loves suspensions so tied down that the slightest bump threatens the front splitter's continued existence. And many don't love turbochargers or want a computer to shift gears for them. Fortunately, just such people live, breathe, and work at Porsche Motorsport. This part of the company makes its living building Porsche's fastest machines, like the Cayman GT4 and the 911 GT3 and GT3 RS. But in an era when the bulk of Porsche's profits come from SUVs, Porsche Motorsport also sees itself as the guardian of the parent company's soul. Motorsport has enough pull that when it tells Porsche's board it needs a car like the 911 R the board listens. The quickest way to turn the 911 into a driver-connected car was to pull the weight out, and the easiest way to do that was to use the 911 GT3 RS as the basis. So it gets that car's magnesium roof, polycarbonate side and rear glass, carbon-fiber bonnet and front fenders, and lots of aluminum. The air conditioning got thrown out (you can pay to put it back in), as did the multimedia screen (ditto), the audio and navigation systems (ditto, ditto), the rear seats, and even the interior door handles. Cloth straps replace the latter so you can still get out of the car. At 3,020 pounds, the R is 110 lighter than the race-bred GT3 RS. Eschewing turbocharging in the interest of car-lover must-haves like induction noise, butterfly chirps, intuitive throttle response, and purity of sound, the 911 R simply borrowed the GT3 RS's 4.0-liter flat-six. So there's 500 horsepower of engine playing for keeps, the car ripping to 60 mph in 3.7 seconds from a standing start, hitting 124 mph in 11.6 seconds, and continuing on to 201 mph thanks to the lack of a monster, drag-inducing rear wing. The dry-sump engine revs and revs and feels like it wants to keep revving forever.