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VW and partner SAIC start building $2.5B Audi plant in China

BEIJING — Volkswagen AG's China joint venture with SAIC Motor Corp has started building a $2.5 billion new energy vehicle (NEV) plant in Shanghai, which will make VW's luxury Audi brand cars, a possible first for the venture. The new plant is a key step for Audi to diversify production of its cars in the world's largest car market from its long-standing local partner, China FAW Group Corp. This shift has been delayed amid resistance from local dealers. SAIC Volkswagen said the new plant would have an annual capacity to make 300,000 cars and begin production from 2020. Audi sold 481,387 vehicles in China from January to September this year. The announcement comes the same week Tesla secured a Shanghai location for a Gigafactory battery plant to serve the Chinese market. Audi unveiled the plan to bolster ties with SAIC in late 2016. Earlier this year, the Germany luxury carmaker bought a 1 percent stake in the SAIC Volkswagen venture, paving the way for the joint venture to produce and sell Audi cars. Volkswagen currently gets a larger proportion of the proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. SAIC Volkswagen said in a statement on Friday the plant would cost 17 billion yuan ($2.5 billion) and would make VW and Skoda models as well as Audi cars. It will help VW tap China's fast-growing market for NEVs, a category comprising electric battery cars and plug-in electric hybrid vehicles. ($1 = 6.9314 Chinese yuan renminbi) Reporting by Yilei Sun and Adam JourdanRelated Video: Image Credit: Reuters Green Plants/Manufacturing Audi Volkswagen Skoda Electric Hybrid

Audi TT Ultra Quattro Concept throws lightness at the problem

Audi is celebrating the 2013 Wörthersee Tour with a special concept version of the company's TT. The Audi TT Ultra Quattro concept tips the scales at just 2,449 pounds thanks to some extensive engineering work. The company pulled nearly 95 lbs from the car's body structure and used carbon-fiber reinforced plastics for many of its detachable body components. As a result, the concept weighs in at a full 220 pounds lighter than its production counterpart. Throw in a wicked turbocharged 2.0-liter four-cylinder engine with 310 horsepower and 295 pound-feet of torque, and you get a machine with the power to weight ratio in the supercar realm. 0-60 comes up in 4.2 seconds and top speed is listed at 173 mph.
Inside, the TT Ultra Quattro features plenty of carbon fiber trim, and designers also fitted the seats from the R8 GT to save a little weight. The buckets use CFRP for the seat frames, saving nearly 50 pounds in the process. In a world where automakers seem blind to the negative effect of throwing more heft at a vehicle, we're in love with the Ultra Quattro concept. Check out the full press release below for more information.

Audi's next R8 snapped running the 'Ring nearly naked

Following the debut of the Lamborghini Huracán, work is now well well under way on its cousin. That, of course, would be the next-generation Audi R8, the followup to the model that put Ingolstadt on the supercar map in 2006 and has been on the market ever since. That's an eight-year lifespan, though to be fair, for 2014 it has gotten a pretty meaningful update. Still, that's a long lifecycle, even if the Gallardo with which it shares its underpinnings was around even longer. In other words, it's about due for replacement.
Fortunately, that's just what Audi has in the cards. We've seen prototypes wearing heavy camouflage lapping the Nürburgring a couple of times over the past few weeks, but now it's been snapped nearly completely undisguised, with largely bare black bodywork giving us an even better look at what to anticipate.
So what are we looking at here? A sharper-looking take on the existing design, for starters, so onlookers and customers alike shouldn't have any trouble identifying this as an R8 - but a newer one at that. It seems to take some cues from the new TT, particularly around the headlights, with more squared-off elements throughout. There's an adaptive rear wing poking out the back and more pronounced side-blade intakes between the doors and the rear wheels, which themselves are wearing ultra low-profile rubber.