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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 TT most likely to breed crossover derivative

Audi has been rolling out successive concepts based on the new TT. Aside from the production coupe and convertible, we've seen the Shooting Brake concept in Detroit, the Offroad concept in Beijing and, most recently, the Sportback concept in Paris. The clear message is that Audi plans on actually producing more derivatives of its stylish two-door, but the question is which one will come first?
Speaking with Britain's Car magazine in Paris this past week, Audi technical chief Ulrich Hackenberg indicated that, while the decision has still yet to be made, the crossover is the most likely candidate.
Producing the TT Offroad concept - or something like it - would give Ingolstadt another addition to its growing crossover lineup that already includes the Q3, Q5 and Q7. Whether this would come in addition to or instead of the rumored Q1 and Q4 models remains to be seen, but crossovers have become increasingly popular and profitable for German automakers like Audi.

Forza 5 documents bringing Audi R18 E-Tron and Le Mans to game

Forza Motorsport 5 is set to come out on November 22 alongside the all-new Xbox One. As part of the launch lineup for a big new system, it shouldn't be a shock that Turn 10 Studios, the maker of the Forza series is going all out in promoting its new game. That's meant making interesting partnerships, like the one it enjoys with Top Gear.
Perhaps a less talked about alliance is between Audi and Turn 10. It's put on full display here, though, as Turn 10 documents the process of building Forza Motorsport 5 alongside Audi's quest at Le Mans, with both sides talking about what it takes to make a game and racing team work (they aren't as different as you might think).
There's also quite a bit of Le Mans and Audi-specific content coming with FM5. As with previous iterations of Forza Motorsport, gamers will have access to both the old and new Circuit de la Sarthe (the most notable difference between the two being the presence of Chicanes on the Mulsanne Straight). Audi will also be volunteering several of its vehicles for the new title, ranging from racers like the R18 e-tron Quattro and Audi Sport R8 to production rockets like the 2013 R8 V10 plus, 2006 RS4 and the 1983 Sport Quattro.