2010 Audi A8l 100th Anniversary Edition on 2040-cars

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Audi diverting a third of R&D budget to electrification

Companies make promises all the time. We'll do X by Y. The new A will be our biggest seller in B. You know the drill. But it's when an automaker puts its money where its mouth is that we really stand up and take notice. That's precisely what Audi is doing as it attempts to convert 25 percent of its sales to electrified vehicles by 2025. Citing two sources with knowledge of Audi's plans, Reuters reports that around a third of the company's research-and-development budget will go to " electric cars, digital services, and autonomous driving." Of course, shifting that much money over to newer technologies means sacrifices elsewhere – Reuters' sources claim Audi will move money away from combustion engines and reduce country-specific powertrain variants, but the sources wouldn't get more specific. According to Reuters, Audi is 22nd in total sales of hybrids and EVs. That's eight spots behind Mercedes and ten spots behind BMW (not to mention hybrid-happy Lexus). Audi's only electric representatives in the US market are the A3 e-Tron and Q5 Hybrid and things aren't much better in Europe – the company needs to dump buckets of money into expanding its meager lineup to bring up the percentage of EVs it sells. Expect greater detail on Audi's electrification plans very soon – CEO Rupert Stadler will discuss the company's path forward on Wednesday at a closed-door meeting in Munich with over 2,000 managers. It's unlikely all those managers will be able to keep quiet. We'll be listening. Related Video: Featured Gallery Audi E-Tron Quattro Concept View 36 Photos News Source: ReutersImage Credit: Audi Green Audi Volkswagen Green Driving Electric Hybrid PHEV e-tron audi e-tron electrification

The 2018 Audi SQ5 looks mean and switches to turbo power

Audi's huge Q8 wasn't the only crossover introduced by the German automaker at this year's Detroit Auto Show. Right alongside it came the 2018 SQ5, the brand's high-performance midsize crossover. This newest version ditches the previous generation's supercharger in favor of a turbo for its 3.0-liter V6. The powertrain is similar to the one used in the latest S4 and S5. Horsepower remains unchanged compared to the last SQ5 at 354, but torque sees a healthy increase to 369 pound-feet, and it's available anywhere from 1,370 to 4,500 rpm. The car itself weighs about 77 pounds less, too. It's a combination that should make the SQ5 pretty entertaining off the line. Coupled to the turbo engine is an eight-speed automatic and standard all-wheel drive. Power delivery and handling can be enhanced with a Quattro sport rear differential that can shuffle power left and right to aid cornering. Audi says the torque vectoring system can send almost all rearward power to one wheel as necessary. The differential is available as part of the S sport package, which comes with other upgrades including air suspension. The suspension gives the crossover a lower ride height by default. Both height and firmness can be adjusted, and it offers an "offroad" position that raises the car for maximum ground clearance. Inside, the SQ5 comes with a sportier interior than its Q5 counterpart. It comes with prerequisites such as a flat-bottomed steering wheel and more-bolstered seats. Audi also provides a Bang & Olufsen sound system and standard Apple CarPlay and Android Auto. The cabin experience can be further augmented with Audi's Virtual Cockpit LCD instrument panel, as well as driving assists such as a variable-ratio steering rack and adaptive cruise control that can handle stop-and-go traffic from 0 to 40 mph. Audi will begin selling the new 2018 SQ5 here in spring of 2017. Pricing for it and the Q5 has not yet been released. Related Video:

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury