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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.

Porsche offering 250-hp 718 Cayman, Boxster in China

Porsche is studying a new approach in the lucrative Chinese market – less power. Automotive News Europe reports that the famed German manufacturer will sell less powerful versions of the 718 Cayman and Boxster in the People's Republic. In fact, the new cars are already on Porsche's Chinese consumer page. The hope, 718 chief Jan Roth told Automotive News Europe, is to replicate the success Porsche's sister company Audi has had with the TT. "A lot of the TTs that Audi sells in China, the smaller displacement 1.8-liter versions with rear-wheel instead of all-wheel-drive, are priced below that, Mercedes too," Roth said. We're guessing the comments about rear-wheel drive and a 1.8-liter engine are either typos or something was lost in translation, because Audi's Chinese website only lists a 2.0-liter engine, and most gearheads know the TT rides on a front-drive platform. Audi's success is largely down to price – 542,800 yuan ($81,549, at today's rates) for a base TT. Roth called 600,000 yuan "a magical threshold for customers in China." To hit that price point, Porsche is dropping the 718's 2.0-liter, turbocharged four-cylinder – offered North America and Europe with 300 horsepower in base form – to 250 ponies. The Cayman starts at 588,000 yuan ($88,340) while the Boxster is 598,000 yuan ($89,842). The 350-hp Cayman S will carry on unchanged. According to ANE, Roth said Porsche's Chinese strategy could drive 718 sales up to 4,500 units a year by 2017, nearly double the 2,500 Boxsters and Caymans sold in 2015. Could a similar lower-tiered strategy work in the US? We'll need to put on our speculation hats. In the US, the base car is about 81 percent of the price of the 350-horsepower S model. If Porsche were to offer the same discount for the hypothetical, 250-hp 718s, it could set the starting prices at $43,659 for the Cayman and $45,360 for the Boxster. That lines up neatly with the $43,500 TT Coupe, but this theoretical 250-hp Boxster would fall about $1,640 less than Audi's soft top. We shouldn't forget Porsche's expansive options catalog – we doubt there'd be a lot of sub-$50,000 718s on dealer lots. But still, slashing over $10,000 off the price of a $54,000 car is a big ask – Porsche would almost have to de-content such a lower-tier model. But – and this is a Kim K-sized but – moving the 718 downmarket would open the brand to a new range of consumers. Not only would these new cars be the cheapest sportscars from Porsche money could buy.

First all-electric Porsche will use Le Mans 919 Hybrid tech

Porsche has been testing and teasing all-electric vehicles for years, like the trio of experimental Boxsters in 2010 and a Pajun EV in 2015. Then came the Mission E, a gorgeous electric concept unveiled at the Frankfurt Motor Show late last year. Unlike previous test programs, this one was intended for the real world. Porsche is getting ready to ramp up its EV development, and has stated that its first all-electric vehicle, based on the Mission E, will arrive by 2020. For now, the future production version of the Mission E looks a lot like the Le Mans Prototype Porsche 919 Hybrid. Well, under the hood, anyway. Parts of the 800-volt powertrain in the Mission E are being used in the Le Mans prototype because, "The 919 served as the trial vehicle for the voltage level of future hybrid systems," Porsche says. During testing with the race car, Porsche says it is learning a lot about EV tech, including keeping the battery and electric motor cool and "extreme high-voltage" connectors. This news is not as exciting as a flashy new concept, but this is just the sort of thing that automakers need to do in the big transition from fossil fuels to electric drive. Related Video: Hybrid technology in the LMP1 Porsche 919 Hybrid Atlanta, Georgia. This weekend, the Le Mans Prototype Porsche 919 Hybrid has its only 2016 appearance in Germany. At the six-hour race to be held on the Grand Prix circuit of the Nurburgring, the fourth round of the FIA World Endurance Championship (WEC), the series' leader fights to defend its title. At the same time its mission is to revolutionize the technology of future sports cars. With the 919 Hybrid, Porsche has developed a new field of technology at racing speed. For the "Mission E", a fully electric road-going concept sports car unveiled in 2015, the designers adopted the 800-Volt technology from the prototype racer. Porsche has exhausted all possibilities in designing the two-time 24 Hours of Le Mans winner – especially in terms of the drive concept. It consists of a two-liter, V4 turbocharged gasoline engine – the most efficient combustion motor that Porsche has built up to now– and two different energy recovery systems. During braking, a generator at the front-axle converts the car's kinetic energy into electrical energy. In the split exhaust system, one turbine drives the turbocharger while another converts surplus energy into electrical energy.