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VW and partner SAIC start building $2.5B Audi plant in China

BEIJING — Volkswagen AG's China joint venture with SAIC Motor Corp has started building a $2.5 billion new energy vehicle (NEV) plant in Shanghai, which will make VW's luxury Audi brand cars, a possible first for the venture. The new plant is a key step for Audi to diversify production of its cars in the world's largest car market from its long-standing local partner, China FAW Group Corp. This shift has been delayed amid resistance from local dealers. SAIC Volkswagen said the new plant would have an annual capacity to make 300,000 cars and begin production from 2020. Audi sold 481,387 vehicles in China from January to September this year. The announcement comes the same week Tesla secured a Shanghai location for a Gigafactory battery plant to serve the Chinese market. Audi unveiled the plan to bolster ties with SAIC in late 2016. Earlier this year, the Germany luxury carmaker bought a 1 percent stake in the SAIC Volkswagen venture, paving the way for the joint venture to produce and sell Audi cars. Volkswagen currently gets a larger proportion of the proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. SAIC Volkswagen said in a statement on Friday the plant would cost 17 billion yuan ($2.5 billion) and would make VW and Skoda models as well as Audi cars. It will help VW tap China's fast-growing market for NEVs, a category comprising electric battery cars and plug-in electric hybrid vehicles. ($1 = 6.9314 Chinese yuan renminbi) Reporting by Yilei Sun and Adam JourdanRelated Video: Image Credit: Reuters Green Plants/Manufacturing Audi Volkswagen Skoda Electric Hybrid

Workers at Mississippi auto supplier protesting low wages

Workers at an automotive seat factory in Mississippi are protesting what they say are low wages and poor working conditions as they attempt to unionize in what could become a new front for the United Auto Workers in the state. A group of workers and supporters at the Faurecia SA seating plant in Cleveland plans a Tuesday march. "We work an auto job and we're getting paid like Wal-Mart wages," said Jamarqus Reed, a 32-year-old Pace resident who has worked at the plant for almost 10 years. "We're trying to better ourselves." Nationally, the UAW has staked its future on unionizing Southern auto factories, with limited success so far. The union has been trying to organize Nissan Motor Co.'s Canton, MS, plant for years, and lost a 2008 worker vote at a Johnson Controls plant in nearby Madison that French-based Faurecia bought in 2011. The UAW narrowly lost a unionization vote at the Volkswagen AG plant in Chattanooga, TN, last year, but the union has since qualified for a new labor policy at the plant that grants access to meeting space and to regular discussions with management. The policy stops short of collective bargaining rights. The union is also trying to organize Nissan's assembly plant in Smyrna, TN, and Daimler AG's Mercedes-Benz plant in Tuscaloosa, AL. Protesters say Faurecia employees make a top wage of $11.64 per hour, while contract workers make $7.73 an hour. Company spokesman Tony Sapienza said that with overtime, the typical Faurecia employee makes more than the $27,000 a year that is the median wage around Cleveland. Wages are often low in the heavily impoverished Delta. "We are very confident that we are offering a very competitive wage," Sapienza said. Organizers criticize use of lower-paid contract workers Shannon Greenidge, a 44-year-old Cleveland resident, said she worked for a labor agency for more than two years before being hired directly by Faurecia. Greenidge said she makes $9.29 an hour, and can't save for retirement or to send her 11-year-old daughter to college. "That's not going to help me down the line in life," she said. Union supporters say as many as half the workers at the plant work for a contract-labor agency. Sapienza said that while the number varies, the company expects 15 percent of its workforce will be temporary employees this year. The UAW has organized some Southern auto parts plants in recent years, including Faurecia plants in Cottondale, Alabama, in 2012 and Louisville, Kentucky in 2013.

The tumultuous history of the diesel engine

Volkswagen, diesel's most enthusiastic patron, deceived everyone about the amount of emissions its cars were putting out. We have covered this latest massive automotive scandal in great detail, and there are surely more fascinating revelations to come. It turns out that this is just the latest episode in the epic story of the controversy and intrigue surrounding the diesel engine, and its inventor. This is the story of the tumultuous birth and interesting evolution of the compression-ignition engine at the center of the VW scandal. Napoleon III Got Rudolf Diesel Deported Rudolf Diesel was born in Paris in 1858. His Bavarian parents had settled in France where his father, Theodor, was a leather goods manufacturer. When the French Parliament declared war on Prussia, kicking off the Franco-Prussian war, the Diesels fled to London. When he was 12, Rudolf went to live with his aunt and uncle in the Bavarian university town of Augsburg. It was his parents' hometown, and importantly, it's where Rudolf began studying at the Royal County Trade School. His time in Augsburg, graduating at the top of his class from trade school that laid the groundwork for all that was to come. Diesel Nearly Blew Himself Up An early career in refrigeration saw Diesel running R&D in Berlin for Linde, a company started by refrigeration pioneer Carl Von Linde, one of Diesel's professors. His ambition to branch out beyond refrigeration, and his deep understanding of thermodynamics, led to efficiency experiments with steam engines. Diesel was trying to create an engine that didn't waste heat from the combustion process, therefore getting the most work out of the fuel. Instead, he was nearly killed when an experimental ammonia vapor steam engine exploded. Recovery took many months, and during some of that time, he was no doubt planning his next experimental engine, based on the theoretical Carnot cycle. His Engine Was An Attempt To Stick It To The Man Steam engines were expensive to run and wasteful. Diesel thought the efficiency of his design would be a way for the small business to compete with the dominant industrial giants. It was, and it did, but big business is equally passionate about chasing efficiency. Diesel engines quickly proliferated in industries both grand and cottage. Rudolf Didn't Really Invent The Diesel As We Know It Instead, he improved an existing one to a significant degree. The Diesel engine could be considered an evolution of the "hot-bulb" engine.