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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

11M VW diesels affected, Porsche and Audi under investigation

Volkswagen's diesel scandal is growing exponentially larger. In a new statement, the company admits that 11 million vehicles worldwide might be equipped with software capable of evading emissions testing. In addition, the Environmental Protection Agency is beginning an investigation into the 3.0-liter V6 in Audi models and the Porsche Cayenne in the US, according to The Detroit News. The automaker claims that from its investigation so far, the "relevant engine management software is also installed in other Volkswagen Group vehicles with diesel engines." However, the company finds that the "noticeable deviation" in test results and real-world numbers only relates to the Type EA 189 powerplant. That still leaves 11 million vehicles potentially skirting emissions rules, though. Governments around the world have started taking a closer look into the company, too. In the US, the EPA has begun testing VW's V6 diesel because "they were certified well before we knew what we know now," Christopher Grundler, director of the EPA's Office of Transportation and Air Quality, said to The Detroit News. The agency has started checking diesels from other automakers to make sure they're meeting the rules, as well. Germany, the European Union, and South Korea have instituted similar investigations. In response, VW is setting aside 6.5 billion euros ($7.25 billion at current rates) to cover servicing all of these diesels. The company admits that the figure might have to be adjusted depending on what happens next. The money is being deducted from its third-quarter earnings. Related Video: VOLKSWAGEN AG HAS ISSUED THE FOLLOWING STATEMENT: Sep 22, 2015 Volkswagen is working at full speed to clarify irregularities concerning a particular software used in diesel engines. New vehicles from the Volkswagen Group with EU 6 diesel engines currently available in the European Union comply with legal requirements and environmental standards. The software in question does not affect handling, consumption or emissions. This gives clarity to customers and dealers. Further internal investigations conducted to date have established that the relevant engine management software is also installed in other Volkswagen Group vehicles with diesel engines. For the majority of these engines the software does not have any effect. Discrepancies relate to vehicles with Type EA 189 engines, involving some eleven million vehicles worldwide.

2016 Technology of the Year Finalist: Audi Virtual Cockpit

The heart of most infotainment systems is a touchscreen in the center console. In many systems, some information can be sent to the gauge cluster in slightly redacted form – stripped-down navigation commands, basic audio info, that sort of thing. To get the full story, the driver has to take their eyes off the road and look to the middle of the dashboard. Audi's Virtual Cockpit, in essence, ditches the center screen and places all that information in the gauge cluster. The high-resolution TFT screen is just over a foot wide, and it has two main modes: Classic view, and Infotainment view. Classic looks like many other traditional TFT gauge clusters, with large traditional gauges and the ability to display a decent amount of information in the space in-between. Go into Infotainment view, and the gauges shrink and head to the lower corners, freeing up a much larger amount of real estate for, say, the nav system map. The gauges also get out of the way when utilizing the menu, entering a destination, or that sort of thing. The four main modes are standard stuff. Virtual Cockpit will show you navigation, media, phone, and trip computer information in large or small formats. You interact with Virtual Cockpit with a familiar MMI wheel-type controller in the center console, like in many other Audis, or with buttons and a scroll/push wheel on the left side of the steering wheel. Climate control functions are handed by physical controls cleverly integrated in the center three vents. It takes a lot of processing power to make all this work as well as it does, and that's handled by NVIDIA's Tegra 3 processor – a quad-core processor usually seen in tablets and smartphones. The system is quick and responsive, and we found the high-resolution screen to be impressively sharp. If there's a downside, it's that Virtual Cockpit doesn't leave an opportunity for a passenger to step in and, say, enter a destination or change the radio station without altering what's right in front of the driver. It could be inconvenient at best, distracting at worst, to have the nav system directions you're trying to follow suddenly be superseded by the audio menu. Adding a small secondary screen for the passenger could be one fix; a connected companion smartphone app another. In the meantime, it's an impressive implementation of a clever idea.