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China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

Audi wants to tattoo your car with a new paint etching process

Those tribal stickers have sort of gone out of style, so Audi has developed a new technique that allows owners to have matte, tattoo-like images etched onto their cars. While initially available on the Audi R8 and R8 Spyder, the technique can be applied to any model, and it goes on after the component has been painted. The process is relatively simple. Audi places a template on the car with the desired design - like the Audi Sport logo in the image above - and then uses a special powder to basically sandblast the paint, roughening the surface of the clear coat. The result is a matt area with a depth of just a few thousandths of a millimeter, less than the width of a human hair, that's basically a permanent decal. Audi can currently handle images up to one meter square and will accept nearly any image that doesn't violate third-party copyrights, presumably excluding any obscene image as well. Just wait for someone to test the limits on that one. The cool thing about the process is that it can be applied at pretty much any point in the car's life. This means any vehicle is a candidate for customization and that an owner could purchase the car at a dealership and have the custom graphic applied afterward. Because the powder affects the paint surface, the image is more resilient than a wrap or sticker. The new option is limited to the side blades on the R8, but Audi will be extending it to other models in the future through its Exclusive program. And while it might affect the resale value of the car, it's a heck of a lot less painful than a tattoo. Related Video: News Source: AudiImage Credit: Audi Auto News Design/Style Audi Technology Convertible Coupe Performance paint customization

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.