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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

Audi confirms Q8, electric CUV in the works

Word got out in late 2012 that the Audi Q8 was reportedly approved for production, but the company has kept the model's development under wraps since then. In a recent speech during Audi's annual meeting, chairman Rupert Stadler confirmed a little more about the vehicle and dropped some hints about other upcoming projects. With luxury crossovers remaining a lucrative market, it should be no shock that Stadler emphasized them in his speech. He reiterated that the Q1 was on track to launch in 2016, and the chairman also confirmed the Q8 as "a sporty Q derivative" that's on the way. The last member of Audi's upcoming CUV onslaught, an electric Q series, is set for 2018 with a range of over 311 miles. An earlier report suggests that the Q1 might not go on sale in the US because it's not right for the market. However, Audi of America is pushing hard to get the Q8. That crossover is based on the latest Q7 (pictured above) and is a way for the Four Rings to take on the BMW X6 and Mercedes-Benz GLE Coupe. The electric Q model was only officially announced earlier this year, and it might use 90-kWh batteries to achieve its performance and range goals. The rest of Stadler's speech focused on the company's future. This year alone, the company is launching products like the second-gen Q7, the new R8, and latest A4. In the next five years, Audi plans to grow its product range from 52 vehicles "to about 60 models," according to the chairman. Rupert Stadler, Chairman of the Board of Management of AUDI AG Neckarsulm, 2015-05-22 Speech at the 126th Annual General Meeting of AUDI AG Outlook Thank you, Axel Strotbek, for your summary of financial year 2014. Ladies and gentlemen, that brings us to 2015 – the year of the next stage of our model initiative. We will present twelve new Audi models this year; the three most important of them are: the new Audi Q7, the new Audi R8 as the sporty spearhead of our brand and our top seller, the new Audi A4. You have already been able to admire the new Q7 and R8 at the entrance. Both of them make a strong statement. Both of them stand for sportiness and top premium quality. And both of them underscore our claim to leadership. We have produced more than 540,000 of the first-generation Q7. The new Audi Q7 is more than a worthy successor. It's the lightest vehicle in its segment. By means of intelligent lightweight construction, we have reduced its weight compared with the predecessor by up to 325 kilograms, depending on equipment levels.

Stay in the house from the Audi R8 Emmy ad

Audi is sponsoring the Emmys again, and launching an ad alongside the awards show that features a family living in the middle of the desert simply to have an excuse to drive their R8s as much, and as fast, as possible. Which is crazy. Even crazier, you can live in the exact house from the ad for a few days as part of an airbnb promotion. The stay includes chauffeured transportation from Las Vegas McCarran airport, all meals prepared by a personal chef, and an R8 V10 Plus in the driveway available for driving. Did we mention it's a real house and not just an advertising prop? It is. The 1,200 square foot Rondolino Residence sits on 80 acres near Scotty's Junction, Nevada, just over 2 hours northwest of Las Vegas. Beginning September 18, seven three-night stays in October will become available - one booking opens up each day at 9 PM Eastern. The rate is listed at $610 per night, with the bookings running October 10th through November 1st. You can book the experience, or try, on the airbnb page. As for the ad, titled "Desolation," at first it seems like a entertaining jaunt about the lengths people will go to for an amazing driving experience. A deeper (and totally unreasonable - it's just an ad) analysis suggests some truly troubling things going on. For starters, the lackadaisical parents let the children taunt a poisonous scorpion. Will the isolated upbringing and history of cruelty towards animals produce a future serial killer? In our deranged version of this fictional universe, yes. Second, the R8 - spoiler alert, both R8s - get super dirty on the run to the corner store. A corner store, which, seemingly unequipped for coffee roasting nevertheless has fresh artisanal beans sold in half-pound bags. Lacking a bulk purchase option, the plot of the ad surely repeats itself several times a week. That sounds insane, but hey, it's all about the drive. And we do love the "Leadfoot Coffee" easter egg. But we digress. Where is the car wash that left the R8 clean before the drive through the desert? And where is the second R8 parked? The male protagonist clearly drives out of the garage from a position that doesn't leave room for the second car. We can only surmise that there is a underground component to the house in the ad. To be clear, we're still in fictional universe of this ad - the real Rondolino Residence, like the Alamo, lacks a basement.