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Ferdinand Piech (1937-2019): The man who made VW global

Towering among his peers, a giant of the auto industry died Sunday night in Rosenheim/Upper Bavaria, Germany. Ferdinand Piech, a grandson of Ferdinand Porsche, who conceived the original Volkswagen in the 1930s, was the most polarizing automotive executive of our times. And one who brought automotive technology further than anyone else. Ferdinand Porsche had a son, Ferdinand (called "Ferry"), and a daughter, Louise, who married the Viennese lawyer Anton Piech. They gave birth to Ferdinand Piech, and his proximity to two Alfa Romeo sports cars — Porsche had done some work for the Italians — and the "Berlin-Rome-Berlin" race car, developed by Porsche himself, gave birth to Piech's interest in cars. After his teachers in Salzburg told his mother he was "too stupid" to attend school there, Piech, who was open about his dyslexia, was sent to a boarding school in Switzerland. He subsequently moved on to Porsche, where he fixed issues with the 904 race car and did major work on the 911. But his greatest project was the Le Mans-winning 917 race car, developed at breathtaking financial cost. It annihilated the competition, but the family had had enough: Amid growing tension among the four cousins working at Porsche and Piech's uncle Ferry, the family decided to pull every family member, except for Ferry, out of their management positions. Piech started his own consultancy business, where he designed the famous five-cylinder diesel for Mercedes-Benz, but quickly moved on to Audi, first as an engineer and then as CEO, where he set out to transform the dull brand into a technology leader. Piech killed the Wankel engine and hammered out a number of ambitious and sophisticated technologies. Among them: The five-cylinder gasoline engine; Quattro all-wheel drive and Audi's fantastic rally successes; and turbocharging, developed with Fritz Indra, whom Piech recruited from Alpina. The Audi 100/200/5000 became the world's fastest production sedan, thanks to their superior aerodynamics. Piech also launched zinc-coated bodies for longevity — and gave diesel technology a decisive boost with the advent of the fast and ultra-efficient TDI engines. Less known: Piech also decided to put larger gas tanks into cars. Customers loved it. Piech's first-generation Audi V8 was met with derision by competitors; it was too obviously based on the 200/5000.

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

2017 Audi R8 First Drive

You might think the new Audi R8 is a Lamborghini in a business suit. You'd be wrong; the Huracan is an R8 in a Heinlein shock trooper suit. This is the most raucous, rowdy Audi yet, and it's most certainly a supercar – even when parked next to its bawdier Italian cousin. Although the Huracan has been on the street for nearly a year now, the new R8 and the Lambo were developed in parallel. Audi handled most of the engineering workload, with the Huracan receiving Lamborghini's styling and tuning finesse on top of its Audi-built V10 engine and seven-speed dual-clutch transmission. The R8 gets Audi's motorsports-inspired best. Tally it all up and you have two very different cars built from very similar components. Of course, that could also be said of the R8 and its racing doppelganger, the R8 LMS, the racecar built for WEC endurance racing. That car, in fact, is more closely related to the R8 than is the road-going Huracan – the wheelbases are the same, 50 percent of the parts are shared, and the bodies-in-white are built on the same line. The racecars are pulled off line for occasional tweaks or additions, then slotted back in to run through most of the same workflow as the R8s that will eventually end up on the streets. Like a new pair of your favorite shoes, the new R8 is familiar and foreign at the same time. This development program pulls from the best of a legendary supercar brand's flair for presence and idiosyncrasy. It also takes lessons from the company's customer racing effort, as well as Audi's own impeccable taste in road manners and clean, elegant design. The end result is an inspired supercar with daily-driver comfort and a surprisingly aggressive side. Like a new pair of your favorite shoes, the new R8 is familiar and foreign at the same time. It's more comfortable and compliant on the street, thanks to a new chassis that's 40 percent stiffer, allowing for a more forgiving suspension tune. The completely reworked 5.2-liter V10 engine has a Great White bite to go with its Rottweiler bark, but only after you provoke it from polite mode with a press of either the Drive Select button or the exhaust sound switch. The seats are comfortable – that can be said for both the standard sport seats or optional carbon-shell, race-style buckets. Wrapped in a cabin that's much more futuristic and forward-looking than the last R8, the overall driving experience is refined, luxurious, and high-tech.