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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

Meet Buster, this 1968 Porsche racecar transporter from Mercedes

If you're thinking about Porsche and Mercedes-Benz when it comes to motorsports, your first thought is probably on the two German brands battling on the track. However, for decades, whenever Porsche's factory team went to compete, a custom Mercedes was right along with them hauling the racecars. These days the truck lives in the Brumos Collection in Jacksonville, FL, and goes by the nickname Buster. However, its story goes back to 1968 when Porsche ordered two commercial vehicles from Mercedes and then handed them over to a Stuttgart-based outfitter for customization. The results were these racing transporters that hauled models like the 917 and 956 until the '80s. The other survived, too, with a place in Porsche's collection. Well-known racers in their own right, Brumos scooped up the transporter in 2003 and have kept driving it to vintage racing events. The interior now boasts the signatures of many of the great drivers from the era of this historic truck. Watch the video for the whole story on the Mercedes with a whole lot of Porsche inside.

Porsche boss admits Panamera's style is offputting

"There have been some small mistakes and we will do it better. For example the design could be better." - Matthias Mueller.
The design of the Porsche Panamera has been divisive, to say the least. Pretty much any Porsche with four doors was going to draw the ire of enthusiasts, but the fast-back-style roofline, prominent curves and seemingly never-ending hood have particularly irked some brand loyalists.