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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

Audi service tech joyrides customer car, allegedly takes drugs on the way [UPDATE]

UPDATE: We've received and added an official statement from Audi Palo Alto. Dealerships get a bad rap. Stories about sleazy salespeople and overpriced service procedures abound, even though the reality is that most dealers are run by and employ honest, fair folks. But just because the bulk of dealers and their employees are good people, it doesn't mean some bad eggs won't slip through the cracks. Audi Palo Alto, in the heart of Silicon Valley, is finding this out the hard way after dash cam video of a service tech abusing a customer's car started blowing up on YouTube. In the video, which you can watch above, the unnamed service tech took YouTube user Carrera Chris's Audi – it's not clear what model, but it sounds like one of the company's higher-performance 3.0-liter, supercharged V6 models – for a rather spirited test drive. There are plenty of wide-open-throttle runs mixed in with some speeding – the dash cam's lower display shows 90 miles per hour at one point on the freeway – and you can hear the driver laughing throughout. None of this is too remarkable on its own, and maybe not enough to get the tech fired. Until, that is, he pulls into a parking lot and begins snorting something. The dash cam doesn't show the technician, so it's impossible to determine what substance – if any – the driver is allegedly taking. It could be coke, could be crushed up pills, or, hey, it could be a prescription nasal spray (it is allergy season, even in perpetually lovely northern California). Carrera Chris does say he found white powder in the seams of the driver's seat, so take that for what it's worth. There are five videos that include 12 minutes of footage – the one up top is a summary, while the four below show the alleged drug use and some more mundane footage. We've reached out to Audi Palo Alto's general manager, Jason Mattia. He wouldn't answer our questions over the phone, but did forward an official statement from the dealer. An unfortunate incident was brought to our attention earlier this week. We immediately began our investigation and have already taken action. We are working with the customer involved and have thanked them for bringing this matter to our attention. At Audi Palo Alto, we are proud to be a part of the San Jose community. We value and respect our customers, and our team of 75 employees strives to deliver the highest level of customer service.

Audi R18 suffers huge crash during Le Mans practice, driver conscious and alert

Loic Duval, driver of the #1 Audi R18 E-tron Quattro, suffered a massive crash today during free practice for the 24 Hours of Le Mans. Duval's car reportedly went off track backwards at high speed near the Porsche Curves and flew into the retaining fence. There is no video of the actual crash at the moment, but a video of the aftermath (viewable below) shows significant damage to the Audi and to the fence. The wall nearby the car appears unaffected.
Thankfully, it occurred quite close to a marshal's stand, and they were present almost immediately after the incident. Both the official press release from the 24 Hours of Le Mans and a tweet from Audi Sport (below) indicated that Duval was conscious after the crash, and he was taken by ambulance to the medical center and then to the hospital. The press release says: "His condition is encouraging." However, any injuries he might have sustained are unknown at this time. After the crash, the course was red flagged, and practice resumed about 50 minutes later.
Duval is alert. He will be transported from the Medical Center to the hospital for further examinations #R18 #LM24 @FIAWEC @24hoursoflemans