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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

In wake of Volkswagen scandal, cheating may actually get easier

The three crises that rollicked the auto industry in recent months – a rising death toll related to the General Motors ignition-switch defect, the Jeep Cherokee hack and now the Volkswagen cheating scandal – all have one thing in common. Outsiders discovered the problems. In the new matter of Volkswagen rigging millions of cars to outsmart emissions tests, researchers at West Virginia University and the International Council on Clean Transportation first spotted irregularities. In the hacking of a Jeep Cherokee, it was independent cyber-security researchers Chris Valasek and Charlie Miller who found and reported cellular vulnerabilities that allowed them to control a car from halfway across the country. And lest we forget in the case of General Motors, it was a Mississippi mechanic and Florida engineer who first made connections between non-deploying airbags and faulty GM ignition switches that had been altered over time. They worked on behalf of Brooke Melton, a 29-year-old Georgia woman killed in a Chevy Cobalt. "That argument is built on a whole string of trusts, and now it is clear that we should absolutely not be trusting." - Kyle Wiens Amid the Volkswagen scandal, the role these independent third parties played in unearthing life-threatening problems is important to highlight, not only because it shines a light on the ethical indifference corporations paid to life-and-death problems of their creation. The role of the independents is noteworthy because, just as their contributions never been more relevant in protecting the driving public, they could soon be barred from the automotive landscape. Since May, a little-known but critically important process has been playing out before an office within the Library of Congress, which will soon decide whether independent researchers and mechanics can continue to access vehicle software or whether that software, which runs dozens of vehicle components, is protected by copyright law. The Digital Millennium Copyright Act criminalizes measures taken to circumvent security devices that protect copyrighted works. When the DMCA was signed into law in 1998, it was intended to protect the likes of movies from being pirated and companies from ripping off software. At the time, few had a clue that some 17 years later cars would essentially be mobile software platforms run by millions of lines of code that potentially fall under the law's jurisdiction.

Volkswagen NMC production guise caught in China

Chinese car site Autohome has what are said to be the first pictures of the Volkswagen New Midsize Coupe concept in production form. VW's NMC was just introduced at the Beijing Motor Show, while background chatter indicated it would go on sale in China, Autohome says that production version will be built at the Shanghai-Volkswagen plant in Ningbo, and the retail guise could be introduced at the Guangzhou Motor Show in November and go on sale that same month.
Assuming this is the production car, its main lines have made the jump from the concept but with less fine detailing, a silver hue and with conventional VW wheels it's lost a little bit of oomph. Still, a few checkmarks on the option sheet can fix most of that, the shape remains handsome and the 2.0-liter turbo underhood keeps performance peppy and mileage frugal enough. You can head to Autohome for a couple more photos of a sedan we'd be happy to make room for over here.