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Audi investing $30.3 billion through 2018 for product expansion

How does Audi plan to reach two million units in annual sales and pay for the 11 new models it's adding to its lineup - an expansion that may include models named SQ2, Q9 and F-Tron? By increasing its investment to 22 billion euros ($30.3 billion US) between now and 2018. That figure represents an increase of about 500 million euros over the previously planned outlay, according to a report by Automotive News, and that could be due to Audi wishing to goad the momentum that pushed it to 1.5 million annual sales two years ahead of schedule.
It's also about staving off the challenges from BMW and Mercedes-Benz. Now that BMW has been able to turn some of its attention away from its "i" series of Megacity cars, it will reportedly spend more than planned in 2014 as it continues the rollout of ten all-new vehicles and 15 new-generation vehicles through the end of next year. Mercedes, having been dropped to third in the sales race, is preparing to add 13 new cars over the next six years.
Audi's money is going into technology, into product like the next-generation TT and the Q1 and production expansions and upgrades all over the world. The expenditure represents just under a fourth of Volkswagen's 84.2 billion-euro ($115.7 US) outlay devoted to taking the number-one global automaker title away from General Motors and Toyota by 2018.

VW targeting 10M sales in 2014

Volkswagen Group believes it can sell over 10 million vehicles in 2014, with hopes of overtaking Toyota as the world's largest automaker in the process. If VW can do it, it would meet that goal four years earlier than planned. Of course, Toyota isn't sitting still - it also hopes to top the 10 million-car threshold this year and has the advantage of already holding the top spot.
"With rising volume and new models, we will increasingly see positive earnings effects as well," said VW Group CEO Martin Winterkorn during its annual press conference, according to Automotive News. The company is spending huge amounts of money to propel it to the top, investing 84.2 billion euros ($117 billion) through 2018, and according to AN it plans to introduce over 100 new models worldwide among all of its brands by the end of next year.
The German automaker may get an extra boost as the European car industry shows signs of emerging from its yearlong stagnation and China continues to grow. In January, VW Group was up 8.5 percent in Europe and 15.5 percent in China, according to its own figures. However, the US has been slowing with Volkswagen brand sales down 19.04 percent in January and down 13.81 percent in February.

Hello, Siri? Please don't crash the car

Hands on the wheel and eyes on the road? You could still be distracted while driving. Voice-recognition software that many automakers tout as a safer alternative to handheld devices can still divert drivers' attention, a new study published by AAA found. Researchers noted that workload ratings were the highest on their scales when participants in the study used Siri. The technology is alluring because it allows drivers to do things like change the radio station or compose a text message without removing their hands from the wheel or their gaze from the road. But many of those tasks increase a driver's cognitive workload. Depending on the situation, that can be dangerous. "It's especially problematic, because you can be distracted and not know it," J. Peter Kissinger, president of the AAA Foundation for Traffic Safety, told Autoblog. "That's the nature of mental distraction. It's hard to appreciate. ... Often, you don't know you're distracted until it's too late." There's significant variation in the results of the study. Simple, single-task car commands for operations like changing the radio station caused minimal increases in workload, about the same as listening to an audio book. Composing information using speech-to-text technology was more burdensome, and using menu-based functions caused a high level of cognitive workload. Siri-based interactions posed the highest levels of distraction, according to AAA. Researchers noted that workload ratings were the highest on their scales when participants in the study used Siri, and two of the three simulator crashes they observed during the study of 36 participants came while the subjects were interacting with Siri. The subjects weren't looking at nor making contact with their iPhones during these interactions. "Common issues involved inconsistencies in which Siri would produce different responses to seemingly identical commands," the researchers wrote. "In other circumstances, Siri required exact phrases to accomplish specific tasks and subtle deviations from that phrasing would result in a failure. ... Some participants also reported frustration with Siri's occasional sarcasm and wit." It wasn't just the complexity of the task that caused variations in level of distraction – the variations could also be dependent on the particular make and model of the car being tested.