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Audi will spend less on future technology as it focuses on future technology

It seems the very thing meant to be saved by Audi curtailing spending could also take a hit as a result. A report from Reuters outlines a few ways Audi will cut costs in the wake of its parent company's diesel scandal. While focusing on EVs, autonomous driving, and new connected technology instead of its current vehicle portfolio, Audi is axing plans for a track to test self-driving cars as well as facilities meant to produce new concepts and batteries. Or, you know, exactly the kinds of things Audi is now focusing its efforts on. Some of this shouldn't come as a surprise. We already know about the death of the R8 E-Tron, a low-volume EV that wasn't going to make the brand much money and didn't pan out as a halo electric car quite like the company probably hoped. Then there's the new E-Tron crossover, which has been in the works for a while and will head a line of consumer-grade EVs from the brand – the kind that will make money as long as they sell in mass-market numbers, something Tesla has shown is possible. That project is surely safe, although perhaps it will now take longer for the EVs to gain autonomous abilities. This change in funding direction could mean that the planned autonomous track, dubbed IN-Campus as it was to be located in Audi's home of Ingolstadt, was going to be more for show than actual research, or that Audi thinks it can get the same outcomes in its existing facilities or new ones located elsewhere. (The company's work council is upset by the plan being put on hold, as it could mean more jobs leaving Germany.) There's also the very strong possibility that this provides a welcome opportunity for the company to cut some fat. Reuters notes that Audi spends more on R&D than rivals BMW and Mercedes-Benz, despite having the whole VW Group to leverage. While the diesel scandal was certainly not welcome, it may be forcing Audi and the other Group brands to take a closer look at balance sheets than they otherwise would have. The result of all of this could be a leaner company, assuming too much attention doesn't stray to low-volume EVs and away from what are still the core products. Related Video: News Source: ReutersImage Credit: Reuters Green Audi Technology Crossover Autonomous Vehicles Electric audi e-tron

Mercedes considering Audi Allroad rival

The Audi Allroad is something of an anomaly in the automotive world. Its competitors are limited to the recently released Volvo V60 Cross Country and perhaps the far cheaper Subaru Outback. The lifted premium wagon hasn't exactly done great for Audi, only selling a few hundred examples each month. Its best sales year was 2013, and even then, only 5,300 left US showrooms. Despite these limited prospects, word from Australia is that Mercedes-Benz is looking at launching its own competitor to the Allroad. "We are looking at every single niche, so we are studying this [Allroad] at the moment, but it is not confirmed," Matthias Luhrs, VP of sales and a member of the product management at MB, told Motoring.com.au. "We are looking obviously at C-Class and E-Class, but no confirmation at the moment." Fortunately, Luhrs recognizes that the Allroad isn't exactly a smash in the US. "In the US, no matter how long, short, high ... they don't like station wagons," Luhrs said, while adding that the Allroad concept is "developing quite successfully" in Italy and southern Europe. And for those hoping for a lifted C- or E-Class sedan, Luhrs also put the kibosh on that, saying, "We are not studying that." So what does this tell us? Well, it's still far from a sure thing that Mercedes will launch a lifted C-Class or E-Class Estate. And even if the company does go ahead with it, like the rest of the brand's long roofs (E-Class aside), don't expect to see it on US roads.

Audi's new 1,000-hp hybrid pulls like a freight train

Audi's latest plug-in hybrid handles like it's on rails, and pulls like a freight train. That's because it's a train, and literally rides on rails. The vehicle in question is a locomotive which the German automaker developed for its main factory in Ingolstadt incorporates over 11 miles of railroad tracks, along which are transported parts and completed vehicles to be moved around the site. To carry out those duties, Audi teamed up with French manufacturer Alston to deploy a new hybrid locomotive on premises. The locomotive features a plug-in hybrid propulsion systems capable of running on electric power alone for two hours at a time, and can be plugged in to recharge during down-time. The upshot is that it not only pollutes less overall, but can be run inside warehouses more safely. When the power runs out, the electrical system is backed up by a diesel engine. Audi reports that 15 trains arrive at the factory every day. It employs 17 locomotive drivers on site. And each locomotive runs for 3,800 hours each year. Whether we can take Audi at its word when it comes to diesel emissions or not, the company claims that the new hybrid locomotive cuts its carbon emissions by half, taking 60 tons of CO2 out of the atmosphere each year. 10/30/15 Ingolstadt Hybrid locomotive at Audi plant in Ingolstadt This Audi drives on rails: A 1,000 horsepower plug in hybrid locomotive manufactured by Alstom replaces the plant locomotives previously used at the Audi plant in Ingolstadt as of today. This means that components and finished Audi models will now reach the plant's loading stations in a more climate friendly way. "Our goal is all-round sustainable logistics," stated Johann Schmid, head of the Audi plant railway in Ingolstadt. "The new railway technology allows more economical, energy-efficient and low-emission rail transport. In connection with the latest chassis technology, the plug-in-hybrid locomotive sets new standards in shunting and rail transport." The complete automobile plant in Ingolstadt includes 18 kilometers of railways. Every day, 15 goods trains arrive at Ingolstadt North railway station for Audi – loaded with pressed parts, engines and transmissions, as well as cars from other Audi sites that are ready for delivery to customers. And cars produced in Ingolstadt also start their journey to customers by rail. 17 Audi locomotive drivers work at the plant railway. One of their tasks is to allocate the wagons to the various plant buildings.