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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

Toyota recalls power window switches for 6.5 million vehicles [UPDATE]

UPDATE: There was one incident of someone in the US getting a burn to the hand from this issue Toyota spokesperson Cindy Knight tells Autoblog that. "We have 11 reports where part of the door trim and/or switch was burnt," she said. The company isn't aware of any crashes from the problem, though. Because of a potential short circuit in the driver's side power window switch, Toyota is recalling 6.5 million vehicles worldwide, Reuters reports. Of those, the automaker says around 2 million are in the US. The affected models here are: 2007 and 2009 Camry and Camry Hybrid 2009-2011 Corolla 2008-2011 Highlander and Highlander Hybrid 2009-2011 Matrix 2006-2011 RAV4 2009-2011 Sequoia 2009-2011 Tundra 2006-2010 Yaris 2009-2011 Scion xB 2009-2010 Scion xD According to Toyota, the switch might not have received adequate lubricant grease during manufacturing, and over time this could lead to a short circuit. In a worst-case scenario, the part might even overheat, melt and cause a fire. As a fix, dealers will inspect the component on these vehicles and apply heat-resistant grease to it, and any broken examples will have an internal circuit board replaced. Toyota already issued one recall for this problem in 2012 when it had to repair 7.5 million vehicles globally from the 2007-2009 model years, including 2.5 million in the US. These latest models had the grease applied in a different way. Related Video: Toyota Recalls Certain Vehicles for Power Window Master Switch October 21, 2015 TORRANCE, Calif., Oct. 20, 2015 – Toyota Motor Sales, U.S.A., Inc. today announced that it is conducting a safety recall of approximately 2,000,000 vehicles related to the driver's side Power Window Master Switch. The involved vehicles include certain: 2007 and 2009 Camry and Camry Hybrid 2009-2011 Corolla 2008-2011 Highlander and Highlander Hybrid 2009-2011 Matrix 2006-2011 RAV4 2009-2011 Sequoia 2009-2011 Tundra 2006-2010 Yaris 2009-2011 Scion xB 2009-2010 Scion xD The Power Window Master Switch in the involved vehicles may have been manufactured with insufficient lubricant grease. If not enough grease is applied, under certain conditions the switch may develop a short circuit that can cause the switch assembly to overheat and melt. A melting switch can produce smoke and potentially lead to a fire. Toyota previously recalled certain 2007-2009 model year vehicles for a similar condition.

Audi outlasts rivals to win 13th Le Mans title

As is so often the case, the 2014 Le Mans was a war of attrition, and Audi managed to prevail once again after all 24 hours had been recorded in the history books, with its Audi R18 E-Tron Quattro claiming first and second places, followed by Toyota in third. Drivers Marcel Fassler, Andre Lotterer and Benoit Treluyer inherited the lead in their No. 2 Audi after the No. 7 Toyota, driven by pole-sitter Kazuki Nakajima, was forced to retire with electrical problems in the 15th hour.
The No. 2 Audi led the race until it was forced to the pits to replace a turbocharger in the 17th hour, allowing the No. 1 Audi, driven by Lucas di Grassi, Marc Gene (who was a last-minute replacement for Loic Duval, who crashed hard during practice) and defending champion Tom Kristensen, led the race until the 21st hour, when it too had to pit with turbocharger issues. This gave the No. 20 Porsche of Timo Bernhard, Brendon Hartley, and Mark Webber the lead until it was forced off the track with gearbox problems, eventually finishing in 38th position.
In LMP2, the Jota Sport Zytek Z11SN-Nissan driven by Simon Dolan, Harry Tincknell and Oliver Turvey claimed victory, the first five LMP2 finishers all powered by Nissan. Down a level in GTE-Pro, No. 51 AF Corse Ferrari 458 Italia GT2 driven by Gianmaria Bruni, Toni Vilander and Giancarlo Fisichella finished one lap ahead of the leading Corvette Racing C7.R. And finally, the No. 95 Aston Martin Racing Vantage GTE driven by Kristian Poulsen, David HeinemeierHansson and Nicki Thiim won the GTE-Am race two laps ahead of a Proton Porsche 911 GT3 RSR.