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Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

Audi RS3 spy shots foreshadow an ultra-hot hatch

Not all vehicle prototypes and mules require heavy camouflage - sometimes they can be hidden in plain sight. That's probably what Audi was hoping for while testing its new RS3 wearing S3 duds, but thanks to some visual and audible telltales, our spy photographers were able to recognize this as a precursor to the marque's ultra-hot hatch testing near the Nürburgring.
Our photographer noticed the signature exhaust note of a five-cylinder engine, which suggests the RS3 could borrow its motivation from the excellent TT RS. Producing at least 340 horsepower, this 2.5-liter turbo powerplant could be the perfect answer for the new A45 AMG from Mercedes-Benz. The big brakes on this RS3 mule give us our best idea about the car's high-performance intentions, with Audi RS wave brake rotors and six-piston calipers peering out from behind the oversized wheels.
In production form, the RS3 should have a much different appearance from what you see here, with sportier design cues including oval-shaped dual exhaust outlets and a more aggressive front fascia. While we're still waiting for our first taste of the S3 in the North America, we'll be holding our breath for the RS3 to make its way here, as well.

2017 Audi S4 switches to turbo power, loses manual

If you dig the understated look of the 2017 Audi A4 but crave more power, then check out the latest S4. The new sport sedan sticks with a V6 but ditches the supercharger in favor of turbocharging to now produce estimated US figures of 354 horsepower and 369 pound-feet of torque. If there's one downside to the upgrade, it's that Audi only plans to offer the mill with an eight-speed Tiptronic automatic gearbox. The 2017 S4 is now quicker than before. The run to 62 miles per hour takes just 4.7 seconds, versus 4.9 seconds for the current sedan to reach 60 mph. The top speed remains at an electronically limited 155 mph, but fuel economy is claimed to be improved with a rating of 31.8 miles per gallon on the European testing cycle. All S4s come with Audi's venerable Quattro all-wheel drive, and it generally operates with a 40:60 front-rear power split. As conditions change, a maximum of 70 percent of the grunt can go to the front or 85 percent to the rear. Handling is also aided by a tweaked suspension that sits 0.9-inches lower than the A4. Beyond the different badges, the latest S4 doesn't visually advertise its prowess. LED lighting is standard, and quad exhausts rest in a new rear bumper with a subtle diffuser. The side mirror housings also get some aluminum-look trim. The interior layout echoes the A4 but with sport seats and a mix of Nappa leather and Alcantara upholstery. Audi's digital instrument cluster is optional and includes an exclusive sport screen among the three views. The new S4 goes on sale in 2016 as a 2017 model. In addition to the lack of a manual, there's no intention of offering the S4 Avant in the US. Sporty and high-tech: the new Audi S4 and S4 Avant September 15, 2015 | FRANKFURT/INGOLSTADT, Germany Audi launches the new S4 and S4 Avant at the IAA in Frankfurt am Main. The top models from the A4 series are ahead of the competition – with intelligent lightweight design, powerful engines, an extensive package of the latest technologies, and 260 kW (354 hp), 0 to 100 km/h (0 to 62 mph) in 4.7 seconds. (The all-new A4 and S4 are expected to go on sale in the U.S. market in 2016. The Avant is not planned for the U.S. market.) "At Audi, we have more than 20 years of expertise in developing our sporty S models," says Professor Dr. Ulrich Hackenberg, Member of the Audi Board of Management for Technical Development.