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2017 Audi S5 First Drive

Let's start with the obvious elephant in the room: The new 2017 Audi S5 looks mostly like the model it replaces. Is that a bad thing? We headed to Portugal to test out the S5 on that country's serpentine back roads, and to see if there's something more substantive behind its evolved exterior. Only compared to the decidedly more evocative Mercedes-AMG C43 Coupe does the svelte S5 come across as a little frumpy. It takes parking the new S5 next to the old one to spot the details. A tweaked profile. A more pronounced belt line. A power-dome hood. Narrower A-pillars. The new S5 is different, but the same, in that grand Audi tradition. Underhood, the differences are again evolutionary. The original S5 featured a 4.2-liter, naturally aspirated V8. A few years back, that was replaced by a supercharged 3.0-liter V6, which in turn has been supplanted in the 2017 S5 by a turbocharged 3.0-liter V6. The turbo, a twin-scroll unit nestled between the cylinder banks, helps the direct-injection engine make a healthy 354 horsepower and 369 pound-feet of torque. That power, 21 hp and 44 lb-ft more than its predecessor, is channelled through Quattro all-wheel drive. The newly developed V6 mates exclusively to a conventional eight-speed automatic, which seems like a step backward. Last year's S5 offered either a six-speed manual or a seven-speed dual-clutch gearbox. We pressed Audi and got the answer we expected: Demand for the stick was nonexistent outside the United States (go America!) and the dual-clutch couldn't handle the 44 pound-foot increase in torque. Curiously, the A5 on which the S5 is based trades last year's eight-speed autobox for a seven-speed dual-clutch. It sounds like someone at Audi put the wrong transmission in each car, but in reality the S5's torquey engine is well-suited to the refined eight-speed. Kick the throttle, get into boost, and all four drive wheels scrabble for traction, especially on the wet pavement we encountered outside of Porto, Portugal. Punch the S5 to pass on a tight two-lane road and the sport exhaust roars with the kind of guttural growl we want to hear in a sporty coupe. It positively scoots. Though its Volkswagen MLB 2 platform is new, the S5 rides and handles like a more refined version of its predecessor. Considerably less road rumble penetrates the cabin, and the S5 strikes a pleasant balance between grand-touring plush and sports-car firm.

Audi to keep hiring workers despite VW diesel scandal

Even while Volkswagen contemplates delaying or canceling projects to pay for costs related to the massive diesel emissions scandal, its stablemate Audi is hiring, according to Reuters. Audi certainly isn't immune to the diesel scandal, with around 2.1 million affected vehicles worldwide including 13,000-14,000 in the US, but the scandal so far isn't affecting staffing levels. "We are sticking with plans for strategic growth and are continuing to hire new employees as planned," Audi board member for human resources Thomas Sigi said in a German newspaper, according to Reuters. Sigi even suggested paying a "respectable" bonus to workers next year. Audi has some big projects on the horizon, too. Among them, the company intends to launch a production version of the E-Tron Quattro Concept in 2018, and for performance fans a new TT RS appears to be on the way. The new A4 should be a big contributor to global volume when its worldwide rollout is complete. Rather than allowing the diesel scandal to hurt all of its divisions, the VW Group instead wants to concentrate the fallout (and costs) on the VW brand, according to Reuters. Those expenses could be huge. Volkswagen is budgeting around $7.3 billion just to repair the 11 million emissions-cheating vehicles. Worldwide, maximum estimates put the whole mess at $87 billion. Related Video:

Audi CEO says brand's EVs are almost as profitable as its other cars

After, oh, a hundred years or so of building vehicles primarily powered by internal combustion engines, automakers around the world have been and still are pumping billions of dollars into the development of electric vehicle technology. Everything from platforms and batteries to motors and the software to control it all requires untold hours of development, and that takes time and money. Fortunately, it's not going to take long for that massive investment to start paying off, at least according to Audi CEO Markus Duesmann, who told Reuters in an interview that "The point where we earn as much money with electric cars as with combustion engine cars is now, or ... next year, 2023. They are very even now, the prices." As a brand, Audi contributed more than a quarter of overall profit for the massive Volkswagen Group, which has such powerhouse brands as Volkswagen and Porsche among others. Under the Audi umbrella are Lamborghini, Bentley and Ducati, and it seems those high-end branches aren't going anywhere, at least for now. "These brands ... are very valuable very profitable brands, where we can even expand the synergy level in the future," Duesmann said in the interview. "There are no plans whatsoever to get rid of them." Despite the overall profitability of the brand, the ongoing global chip crisis is causing headaches. "We had a very strong first half in 2021. We do expect a much weaker second half," said Duesmann, who added, "We really have trouble." In fact, so serious is the trouble that the brand is forced into "a day-to-day troubleshooting process" to limit the chip-shortage damage. The good news for the automaker is that Audi has been able to boost its profit margin from 8% prior to the pandemic in 2019 to 10.7% in the first half of 2021. The bad news is that various chip shortages aren't expected to get a whole lot better over the rest of the year. Related video: