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Why Audi is staking its future on electric SUVs

This much we know: SUVs and crossovers sell like hotcakes. The body style has become such a juggernaut that for the first time in recorded history, sport utes beat out sedans this year to score the biggest slice of the luxury pie. Love 'em or hate 'em, SUVs are here to stay, and carmakers are investing more than ever in the segment. Sport utility vehicles also played a bigger role than you might think in making Audi relevant in the US, and based on what we learned during a sit-down with Audi of America president Scott Keogh at the Paris Motor Show, their role is only going to continue to grow at the automaker. Last year, the brand sold 202,202 cars in the States, capping off 60 consecutive months of record sales. But it's not enough to focus on traditional SUVs like the Q5, which was launched on the heels of the global economic meltdown in a tiny small segment of around 160,000 vehicles and has since ballooned to over 400,000 units. The Q5 has scored 80 percent of its buyers from conquest, and a new plant in Puebla, Mexico, promises to churn even more units to the US and the world. Still, tackling the future head-on can be like wrestling an eel – an elusive, almost impossible-to-execute challenge – and Audi is betting a huge part of that success will be the production version of the E-Tron Quattro Concept that debuted last year in Frankfurt. Internally referred to as the C Bev, this battery-powered SUV claims a 311-mile range, and might as well be nicknamed the Tesla Model X Killer. "If you look at where this car migrated from," Keogh says, "it started as a European-ish city car, and then it migrated into a sedan-ish sportback-y type thing, and then we pushed very aggressively to make it an SUV." Keogh says the vehicle will hit showrooms "after 2018." The SUV layout naturally lends itself to batteries, but it also boils down to a simple bureaucratic advantage: "We get [government CO2 and fuel economy] credits for volume," says Keogh. "It's not just enough for a car to be there, it's got to be a car that a lot of people want to buy." Sized between a Q5 and a Q7, the E-Tron Quattro resides in a target-rich environment, a 600,000 - 700,000 unit segment. Add Audi's goals of electrifying 25 percent of its lineup by 2025, and a high volume, medium/large SUV simply makes sense.

Audi Q7 to be first diesel plug-in from VW group

Lending credence to prior reports, the next Audi Q7 will be available with a diesel-powered, plug-in-hybrid powertrain, Automotive News claims, after speaking to a source in the Volkswagen Group. Both the gas and diesel-powered Q7 will debut in 2015, with the diesel PHV to arrive after that. Unlike Europe's other plug-in diesel, the Volvo V60, Audi's Q7 will be sold on both sides of the Atlantic, the source told AN. You can see a few spy photos of the Q7 PHV above. Audi research and development boss Ulrich Hackenberg previously confirmed that diesel plug-ins would be arriving earlier this year, although it wasn't clear which models the ultra-efficient powertrains would be offered on, or which of those would be offered here in the US. Time to play the waiting game...

Audi R8 Exclusive Edition gets laser beam headlights

We've long lamented the National Highway Traffic Safety Administration's draconian Federal Motor Vehicle Safety Standards, which contrary to their name, have actually prevented automakers from selling some substantial and important safety equipment, like advanced headlights, in the US market. Until now, apparently. To be fair, we've known Audi was prepping its advanced laser headlights for the US market, but that doesn't make their arrival any less exciting. Audi will begin offering DOT-approved high-beams that use advanced laser diodes on a limited run of V10-powered R8s. Exclusive to the, um, Exclusive Edition R8, the advanced lamps complement the standard LED low beams and dynamic front turn signals, offering "very bright and pure white light" for 25 lucky consumers. Here's some more techno babble about how the lights work – according to Audi's official release, there's a laser module in each headlight containing four high intensity laser diodes that fire out blue lasers. Then, a phosphor converter adjusts the 450-nanometer laser into visible light that fires up above 40 miles per hour. "When conditions permit," Audi's release reads, the laser high beams "greatly enhance visibility for the driver by projecting a low and wide beam of light on the road ahead." Naturally, we have questions, but Audi wasn't keen on releasing much info ahead of the R8 Exclusive Edition's Los Angeles Auto Show debut. The company confirmed that the new lights are DOT approved, which makes sense considering the LA introduction. We're also wondering how Audi's new Laser Lights differ from BMW's similarly named Laserlight system, offered on the i8. Both setups use lasers to replace conventional high beams, but BMW says it "adjusted to the maximum allowable light output for the US market." Audi was cagey about explaining if it modified the system to satisfy the feds. Ingolstadt also offered the typical "we don't comment on future product" when asked about future applications for its laser headlight technology. Beyond the advanced high-beam headlights, the R8 Exclusive Edition comes standard with Quantum Grey paint, 20-inch "Y Design" wheels, a carbon-fiber side blade with an orange stripe, and a whole bunch of interior trim upgrades, like full leather upholstery and Alcantara trim. Price start at $229,200, not counting $1,250 in destination charges. We'll have more on the R8 and its laser lamps when it debuts in a couple weeks. Related Video: