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Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

Autoblog's adventures at the Nurburgring 24-Hour race [spoilers]

The brand-new Audi R8 LMS, said to share 50 percent of its components with the street-legal R8 shown off at Geneva, has won its very first race at the 2015 Nurburgring 24-Hours. The No. 28 car driven by Christopher Mies, Edward Sandstrom, Nico Muller, and Laurens Vanthoor for the Audi Sport WRT team out of Belgium finished only 40.279 seconds ahead of the No. 25 BMW Sport Team Marc VDS Z4 GT3 in second place, for the smallest winning gap since the race began in 1970. Those two cars traded the lead throughout Sunday morning and were less than a minute away from one another for the last two hours. They were part of a total 35 lead changes during the entire race – a record for the event – and both did 156 laps. Third place went to the No. 44 Falken Tire Porsche 997 GT3, one lap down. The Audis did what they always do: lurked close to the front, stayed out of trouble, then pounced when everyone else faltered. For the opening stretches the BMW Z4 teams owned it, running 1-2-3 for a while, but all of them hit trouble. When morning came and the race got over its yellow-flag fever, the No. 28 Audi was in front and stayed there. It was the third Nurburgring 24-Hour win for Audi in four years, the brand's first win only coming in 2012. Last year's winner, the Phoenix Audi team that set a race record by doing 159 laps, had both of its cars retire. One hit an oil patch about 12 hours in, spun and was hit by another car behind, taking on too much damage to continue. The other retired with engine issues. Other Notes Three cars crashed out of the race while leading, after the rains that weren't supposed to happen, happened about 90 minutes in. The No. 20 Schubert BMW Z4 led the first 50 minutes of the race, hopped a crest at Pflanzgarten, landed in a pool of water, and hit the wall on the 30th lap. Then the No. 30 Frikadelli Porsche, with a driver team that included ex-'Ring Taxi driver Sabine Schmitz, hit the No. 31 Mercedes SLS AMG GT3 on the approach to Carrousel and crashed out. Then the No. 1 Phoenix Audi, last year's winning car, took the lead but hit the wall after that oil patch near Pflanzgarten and was out of the race. Aston Martin celebrated a class win in the SP8 category with the No. 49 Vantage GT4 N430. This being the tenth anniversary of the Vantage running the Nurburgring-24, this year's car was painted in the same colors as the racecar from ten years ago.

Researchers halfway to cutting carbon fiber costs by 90%

Carbon fiber has been utilized for decades to build racecars, as a means to cut weight while maintaining strength. But until recently, the space-age material has been largely absent from the street on anything but supercars because of the expense to use it. Recently, BMW signaled a major shift in that trend when it starting using carbon fiber reinforced plastic panels on the i3 and i8. This relatively small scale start might be just the beginning; the German company believes that a breakthrough to inexpensively manufacture the lightweight stuff is just on the horizon.
MAI Carbon Cluster Management GmbH counts BMW, Audi, Airbus, the German government and many other organizations as supporters, and it's researching how to make carbon fiber cheaper to produce, according to Automotive News Europe. The company thinks it can reduce costs by 90 percent in the near future. "We've certainly reached a halfway point on our cost-cutting target for suitable carbon-fiber parts," said project head Klaus Drechsler to Automotive News Europe.
Unfortunately, it isn't entirely clear just what MAI Carbon is doing to make such a huge leap possible. However, a recent post on the company's website talks about a new form a carbon fiber using a thermoplastic matrix that could be cured in less than three minutes. That's compared to about 90 minutes in the traditional process with an autoclave.