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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

Audi stealthily tests RS4 Avant

With S3s, R8s and RS7s aplenty, Audi offers no shortage of performance models in North America. But one of our favorites is always kept just out of arm's reach. That of course is the RS4 Avant, and here we see Audi Quattro GmbH testing the latest version. Though it may look like a plain old S4 – and even wear S4 badges – the wider fenders and bigger wheels suggest that this is in fact a prototype for the upcoming RS4 Avant. For those unfamiliar, that nameplate connotes the best of all worlds within the A4 range: maximum power, maximum traction, and maximum luggage space. All the ingredients, in short, to make us wonder why anyone would rather drive a crossover. After the first-gen RS4 employed a twin-turbo V6, the subsequent two generations went with a 4.2-liter V8. This model, however, could adopt an electric turbocharger setup to give it all the power it needs (and then some) with a new form of hybrid setup that will soon be spreading across the industry. The bigger question on our mind, of course, is whether the new performance wagon will make the transatlantic voyage to North American showrooms. We're holding out hope that Ingolstadt may make a real run down American roads at the likes of the Mercedes-AMG C63 and BMW M3. Whether it brings the wagon body-style along with it is another matter entirely, but we can always dream. Related Video:

Audi joins the car-sharing party with Shared Fleet

Seeing the success Zipcar and Daimler's Car2Go, more auto manufacturers are cutting out the middleman and jumping into the car sharing business. General Motors, Ford, and BMW have all introduced or announced their own programs. And now Audi has now thrown their hat into the ring with its Shared Fleet program. Like its competitors, Shared Fleet will be accessed through an app. The fleet consists of a mere three all-new and fully loaded 2017 Audi A4s and will be rolled out in a small pilot program in Durham, North Carolina. Audi plans a nationwide fleet for sometime in 2017. Through the app, customers will be able to locate and unlock vehicles. Pricing is currently unknown, but it is likely to be based off the time used, not the distance driven. The pilot program will be based at American Underground, a technology incubator in North Carolina. This will give Audi the chance to get the program into the hands of tech savvy users who have likely used competing programs. More than 700 employees at 200 companies are based at the facility. This isn't Audi's first foray into the car rental business. They previously invested a large amount into Silvercar. They also operate Audi on Demand in San Francisco, a similar program to Shared Fleet. With Audi on Demand, users can drop cars off at their destinations. Related Video: