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Audi rules out R8 PHEV, will build E-Tron to order

The question of whether Audi will morph the next-gen R8 (pictured above, in testing) into a plug-in-hybrid challenger for the BMW i8 may have been answered. CarAdvice, in Australia, is claiming that any plans for a PHV 2016 R8 have been shelved, and that Audi will go ahead with gas-powered or all-electric models, only.
Even then, the electric R8 E-tron (if it ends up being called that) would be built-to-order, and in much smaller quantities than the gas-powered model.
"In the next generation we will have an electric car on behalf of customers' needs, which is only available [upon special order]," Audi product manager Marie Suzanne Ernst told CA. "So it's not a make of series production, but if a customer wants to have it, he can order it."

Entry-level Audi R8 to go turbo after all?

Would you be shocked if we told you that the better version of the Audi R8 offered a V8 engine rather than a V10? There was something inherently lovable about the company's 4.2-liter V8. Maybe it was the noise or the high-revving nature or some combination of the two, but the R8's original engine is a darn hoot. Sadly, the V8's days appear numbered in the brand's flagship model, according to a new report from Car, which claims Audi will ditch the beloved, off-angle 4.2-liter for a 2.9-liter, twin-turbocharged V6. The rumor cites sources in Ingolstadt who claim the new engine will develop 450 horsepower, up 20 ponies on the current entry level engine. We'd expect a commensurate increase in fuel economy too, befitting of a smaller, force-induced engine. Still, this is counter to what we've heard before. But, if the report proves true, the R8 will join the ranks of turbocharged supercars like the Ferrari 488 GTB and California. It's unclear when such a switch would be made, but according to Car, we can place the blame squarely on China. The country has been combating large-displacement engines since 2008, attaching massive taxes on vehicles with anything larger than a 3.0-liter engine. It's China's position, Car reports, that led to the death of another beloved, naturally aspirated V8, Mercedes-AMG's 6.2-liter model. First the venerable M156 and now Audi's 4.2-liter V8? Just stop this silliness China. Related Video:

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.