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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.

An Outback for architects | 2017 Audi A4 Allroad First Drive

There are crossovers – big SUV-like things that give people the commanding view of the road they crave so much – and then there are crossovers. Lifted wagons in the vein of the Subaru Outback are arguably the crossover archetype, but they've become the exception, not the rule. That's where the Audi A4 Allroad fits in. Like its predecessor, the 2017 Allroad is a rather good-looking alternative to a mid-size SUV. The A4 Allroad is again based on the lovely A4 Avant, a wagon that isn't sold in America. The Allroad has a slightly raised suspension compared to its overseas counterpart, slightly higher-profile rubber, standard two-tone paint, roof rails, fender flares, lower body cladding, and a grille with vertical slats to emphasize the rugged point. And for reasons that no automotive purist has ever been able to derive, the look totally works. You can have a two-tone Allroad in one of 13 colors with gray trim along the bottom and the fenders. Or, pay an extra $1,000 on top of the cost of metallic paint and you can opt for one of five monochrome color schemes. In either case, you'll get a handsome, aggressive front end; 18-inch five-spoke wheels; standard Xenon or optional LED lighting up front; and LED lighting in the rear. The rear blinkers have a standard swiping effect borrowed from the R8, and the same sequential motion is applied to the front turn signals on models with the optional all-LED headlights. It's a party trick, but a neat one . We'd be hard pressed to think of an interior that Audi has screwed up recently, and the latest A4 has a particularly good one that translates well to the Allroad. No matter the trim you choose, you'll get your choice of dyed leather, including the requisite brown to best showcase the Allroad's rugged intentions. The level of gadgetry and pricing rises as you work your way up the trim tree – from Premium, to Premium Plus to Prestige, with the sweet spot in the middle – and it more or less mirrors that of the A4. Opting for the Technology Package on Premium Plus models gets you Audi's Virtual Cockpit instrument cluster, a fully configurable gauge package that sets the standard for info display in the industry. (It is so choice. If you have the means, we highly recommend picking one – er, it – up.) Here, the optional advanced dash is paired with an 8.3-inch center display, which is equally intuitive and responsive.

Recharge Wrap-up: Audi Q5 EV built in Mexico, Tesla's $1.26B expansion

Audi will build an electric version of its Q5 in Mexico, according to anonymous sources close to the matter. Audi plans to shift all Q5 manufacturing to its $1.3 billion factory in San Jose Chiapa, which is set to open this fall. Initially, the company will build internal-combustion Q5s at the plant, with an electric version to be introduced in the near future. One source tells Automotive News Europe that Audi is currently training personnel ahead of the facility's opening. The Q5 is currently built in Ingolstadt, Germany, with some being assembled in China and India for sale in those markets. Read more from Automotive News Europe. Tesla is applying for $106 million in tax breaks as it expands its Fremont factory to the tune of $1.26 billion. The expansion comes as the electric automaker looks to accelerate production in order to meet demand for the upcoming Model 3 sedan, and the buildout will include a new production line dedicated to the model. Tesla plans to ramp up production to 500,000 units a year in 2018, though Tesla CEO Elon Musk says the Fremont factory could potentially build a million cars annually. Read more at Electrek. Formula E is partnering with the sports charity StreetGames to help bring sports opportunities to disadvantaged communities. DS Virgin Racing driver Sam Bird, who is currently in third place in the 2015/2016 season's driver standings, will head to his hometown to join Roehampton FC for a soccer tournament on June 27. "If I hadn't been a racing driver, I'd like to think I could have had a career as a professional footballer," Bird says, "so I might be able to give them a few hints and tips on ball control as well as explaining car control!" StreetGames will also be represented at the London ePrix with sports activities for attendees. Read more from Formula E. Related Video: Featured Gallery Tesla Model 3 View 18 Photos Related Gallery 2014 Audi Q5 TDI View 28 Photos News Source: Automotive News Europe, Electrek, Formula E Government/Legal Green Motorsports Plants/Manufacturing Audi Tesla Green Automakers Electric recharge wrapup