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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

Next Audi TT RS comes in 2016, manual transmission doesn't

This line comes from our review of the 2012 Audi TT RS: "Did we mention that the 2012 TT RS is only available with a manual transmission?" When we review the next-generation TT RS, expected to launch next year, we'll have to rewrite that line as: "Did we mention that the TT RS is not available with a manual transmission?" That's the word from Car and Driver, which has heard that the superheated little coupe will only come with the seven-speed dual-clutch gearbox found in the Euro-market RS3 Sportback. The first generation came with a dual-clutch and a manual transmission in Europe, but the unit for our market required the laying on of hands to get from one cog to another. If we don't get another, the blow will be all the more painful because Audi's manual transmissions are so good. Our assessment summed up the last one thus, "With a short, precise throw and excellent action, the transmission is a mechanical work of art." Good news? Volkswagen says the installed DQ500 dual-clutch is faster, more refined, and more reliable. As well, power from the reworked 2.5-liter, turbocharged five-cylinder should rise from 360 horsepower to "around 400." You'll just be asked to keep your hands off of it. The first-gen car only came here after a successful Facebook petition gathered more than 11,000 signatures in a month, we wish Audi had given us a chance to weigh in on this, too. Although we will probably get it later next year as a 2017 model, we could see it at the Frankfurt Motor Show in two months. Related Video:

MTM Audi RS6 Clubsport might be overkill for grocery shopping

As automotive journalists, we're biologically wired to love station wagons. We really don't have a choice. And while we prefer brown, diesel-powered, manual-transmissioned long-roofs, we suppose a 750-horsepower Audi RS6 Avant would be just dandy. This is the MTM RS6 Clubsport, and as we mentioned, it's very powerful. That's thanks to a modified version of Audi's critically acclaimed 4.0-liter, twin-turbocharged V8. While 750 hp out of just 4.0 liters is impressive, 697 pound-feet of torque is an equally big accomplishment. And if that's not enough, MTM has managed to shave nearly 200 pounds of body fat from the big wagon. Needless to say, it's very, very fast. MTM has displayed a degree of aesthetic restraint, eschewing the gaudy body kit favored by some other tuners and simply opting for a questionable paint job. The 21-inch wheels look good, although with the smattering of rubber around them, we wouldn't bet on a comfortable ride. As for the cabin, well, MTM got a bit out of hand. It's very, very orange. The seats are essentially carbon-fiber shells lined with bits of orange, leather-wrapped padding here and there. Orange, quilted-leather in the door panels, center armrest and on cushions on the side of the center console – a nice touch we wish more automakers would add to their performance cars – contrasts nicely with the black plastics and carbon fiber found on the rest of the dash and center console. That said, we aren't crazy about space for passengers, thanks to the large cage that's there to boost structural stiffness. We have a full gallery of photos of the MTM RS6 Clubsport direct from Geneva. Trust us, you'll want to have a look at this one. Related Video: