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VW and partner SAIC start building $2.5B Audi plant in China

BEIJING — Volkswagen AG's China joint venture with SAIC Motor Corp has started building a $2.5 billion new energy vehicle (NEV) plant in Shanghai, which will make VW's luxury Audi brand cars, a possible first for the venture. The new plant is a key step for Audi to diversify production of its cars in the world's largest car market from its long-standing local partner, China FAW Group Corp. This shift has been delayed amid resistance from local dealers. SAIC Volkswagen said the new plant would have an annual capacity to make 300,000 cars and begin production from 2020. Audi sold 481,387 vehicles in China from January to September this year. The announcement comes the same week Tesla secured a Shanghai location for a Gigafactory battery plant to serve the Chinese market. Audi unveiled the plan to bolster ties with SAIC in late 2016. Earlier this year, the Germany luxury carmaker bought a 1 percent stake in the SAIC Volkswagen venture, paving the way for the joint venture to produce and sell Audi cars. Volkswagen currently gets a larger proportion of the proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. SAIC Volkswagen said in a statement on Friday the plant would cost 17 billion yuan ($2.5 billion) and would make VW and Skoda models as well as Audi cars. It will help VW tap China's fast-growing market for NEVs, a category comprising electric battery cars and plug-in electric hybrid vehicles. ($1 = 6.9314 Chinese yuan renminbi) Reporting by Yilei Sun and Adam JourdanRelated Video: Image Credit: Reuters Green Plants/Manufacturing Audi Volkswagen Skoda Electric Hybrid

The 2018 Audi SQ5 looks mean and switches to turbo power

Audi's huge Q8 wasn't the only crossover introduced by the German automaker at this year's Detroit Auto Show. Right alongside it came the 2018 SQ5, the brand's high-performance midsize crossover. This newest version ditches the previous generation's supercharger in favor of a turbo for its 3.0-liter V6. The powertrain is similar to the one used in the latest S4 and S5. Horsepower remains unchanged compared to the last SQ5 at 354, but torque sees a healthy increase to 369 pound-feet, and it's available anywhere from 1,370 to 4,500 rpm. The car itself weighs about 77 pounds less, too. It's a combination that should make the SQ5 pretty entertaining off the line. Coupled to the turbo engine is an eight-speed automatic and standard all-wheel drive. Power delivery and handling can be enhanced with a Quattro sport rear differential that can shuffle power left and right to aid cornering. Audi says the torque vectoring system can send almost all rearward power to one wheel as necessary. The differential is available as part of the S sport package, which comes with other upgrades including air suspension. The suspension gives the crossover a lower ride height by default. Both height and firmness can be adjusted, and it offers an "offroad" position that raises the car for maximum ground clearance. Inside, the SQ5 comes with a sportier interior than its Q5 counterpart. It comes with prerequisites such as a flat-bottomed steering wheel and more-bolstered seats. Audi also provides a Bang & Olufsen sound system and standard Apple CarPlay and Android Auto. The cabin experience can be further augmented with Audi's Virtual Cockpit LCD instrument panel, as well as driving assists such as a variable-ratio steering rack and adaptive cruise control that can handle stop-and-go traffic from 0 to 40 mph. Audi will begin selling the new 2018 SQ5 here in spring of 2017. Pricing for it and the Q5 has not yet been released. Related Video:

Next Audi R8 to be up to 130 pounds lighter

"Simplify and add lightness," as Lotus founder Colin Chapman said. In a world where even supercars are subject to environmental, efficiency and emissions standards, lighter vehicles are being looked on as a sort of panacea - make it lighter, and it's automatically faster, more agile, easier to brake and better on gas.
Knowing this, it comes as no shock that Audi is looking at ways to lighten up its next-generation R8, with the brand's head of technical development Ulrich Hackenberg targeting a 110- to 130-pound diet for the mid-engine rocket. This supports previous reports regarding the focus for the next R8. Motor Trend reports that aluminum and carbon fiber feature heavily in plans for the next R8, which should go a long way toward slimming down even the lightest of R8s, the 3,678-pound V10 Plus model.
There's more over at Motor Trend, including the buff book's attempts to get Hackenberg to discuss powertrain options for the next R8.