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Audi recalls 850,000 A4 models globally for airbags that won't deploy

Audi has announced that it will be recalling 850,000 A4 sedans, wagons and Allroad models across the globe due to a software problem that could prevent the front airbags from deploying. All 850,000 vehicles were built after 2012.
Audi has already adjusted production of new A4s to eliminate the software glitch. Meanwhile, the German manufacturer was quick to emphasize that Takata did not manufacture the affected airbags.
According to Reuters, 250,000 of the affected A4s were built for the Chinese market, while another 150,000 were sold in Germany. Audi didn't provide a breakdown beyond those two countries, although it'd be a surprise if there weren't at least some affected airbags in the US market.

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

Audi Q1 captured wearing production metal for first time

Audi is getting closer and closer to introducing its smallest crossover ever in the form of the new Q1. Now, we have our very first shots of the mini cute ute wearing its production skin. Expected to make its debut in 2016, it would seem that the Q1 will follow the trend set by the Q3 and draw inspiration from the brand's Q5 mid-sizer. Proportionally, it doesn't look dramatically smaller than the Q3. The front overhang is similarly sized, although there's a smaller rear overhang and a more aggressive rake to the rear window. The front windshield looks more aggressive too, and overall, the Q1 looks to sit lower to the ground than its big brother. While it shares a number of parts with the current Audi A1, when the Q1 debuts, it won't be based on the same platform. Audi's smallest car rides on the Volkswagen Polo's platform, while our spies report that the Q1 will instead be based on the Volkswagen Group's MQB platform. Despite the different platforms, though, expect there to be some sharing of powerplants. That means a variety of gas engines, and likely a version of the A1's 1.6-liter, turbodiesel four-cylinder. There should also be an SQ1 coming shortly after the standard model debuts. You know, for all the folks demanding a high-performance, all-wheel-drive, luxury mini crossover. Check out the full gallery of spy photos at the top of the page.