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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.

2016 Audi A6 First Drive [w/video]

The Audi A6 could be seen as a singular kind of sleeper. It sells in volumes that are one-half to one-third those of its German competition. The sedan doesn't command a conversation much less the imagination, its history bereft of iconic brand identifiers. Think of the way the E28 BMW 5 Series turned the segment into something to be proud of, or those double headlamps from the W210 Mercedes-Benz E-Class, or that other E from 1986 simply known as Der Hammer. There is currently no RS6 sedan in the US to draw halo attention to the clan. And it was the first in its segment to slip into a design lassitude such that you had to check the badge to make sure it wasn't a different Audi. However, I look at the A6 from the other side: it's an underappreciated gem. With the 3.0-liter supercharged V6, it's a thoroughly fun steer. It has more power and torque than the competition. I think it has the finest interior. It's probably my favorite sedan in the segment considering how many boxes it checks before you cross the bridge to things that begin with S, M, and AMG. But you have to get to know an Audi in order to comprehend what it possesses, and the "product improvement" rolled out for the 2016 A6 won't change that. I'll call these "blind spot updates," because someone needs to point out where they are, and even then you've got to work to see them. Nevertheless, they're there, in places like the wider grille, new headlights and taillights with revised LED DRL signatures, new bumpers, side sills, rockers, and trapezoidal tailpipe finishers. The interior and driver assistance systems get gussied-up. The interior and driver assistance systems get gussied-up, too. The base A6 2.0T can be had with driver aids now – Audi pre-sense comes standard, the night vision assistant will identify animals, and the blind spot monitor works with lane keep assist to give you even more warning before changing lanes. There are two new colors and new inlays, like the layered walnut on the tester I drove, which is an upper-tier luxury feature that's finally filtered downstream. The biggest interior rework comes via the MMI system, which gets the Nvidia Tegra 3 quadcore chip pushing graphics to a retractable, eight-inch touchscreen. The additional processing power allows for new features like expanded codec playback – you can now play uncompressed .flac files straight through the stereo.

Are supercars becoming less special?

There's little doubt that we are currently enjoying the golden age of automotive performance. Dozens of different models on sale today make over 500 horsepower, and seven boast output in excess of 700 hp. Not long ago, that kind of capability was exclusive to supercars – vehicles whose rarity, performance focus, and requisite expense made them aspirational objects of desire to us mortals. But more than that, supercars have historically offered a unique driving experience, one which was bespoke to a particular model and could not be replicated elsewhere. But in recent years, even the low-volume players have been forced to find the efficiencies and economies of scale that formerly hadn't been a concern for them, and in turn the concept of the supercar as a unique entity unto itself is fading fast. The blame doesn't fall on one particular manufacturer nor a specific production technique. Instead, it's a confluence of different factors that are chipping away at the distinction of these vehicles. It's not all bad news – Lamborghini's platform sharing with Audi for the Gallardo and the R8 yielded a raging bull that was more reliable and easier to live with on a day-to-day basis, and as a result it went on to become the best-selling Lambo in the company's history. But it also came at the cost of some of the Italian's exclusivity when eerily familiar sights and sounds suddenly became available wearing an Audi badge. Even low-volume players have been forced to find economies of scale. Much of this comes out of necessity, of course. Aston Martin's recent deal with Mercedes-AMG points toward German hardware going under the hood and into the cabin of the upcoming DB11, and it's safe to assume that this was not a decision made lightly by the Brits, as the brand has built a reputation for the bespoke craftsmanship of its vehicles. There's little doubt that the DB11 will be a fine automobile, but the move does jeopardize some of the characteristic "specialness" that Astons are known for. Yet the world is certainly better off with new Aston Martins spliced with DNA from Mercedes-AMG rather than no new Astons at all, and the costs of developing cutting-edge drivetrains and user interfaces is a burden that's becoming increasingly difficult for smaller manufacturers to bear. Even Ferrari is poised to make some dramatic changes in the way it designs cars.