Audi Q7 Prestige S-line Package on 2040-cars

Auto blog

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

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Audi EV exec compliments Tesla Supercharger network

Stefan Niemand, Audi's Director of Battery Electric Vehicles, didn't mince words that the EV market must improve, and he even applauded the American competition during a meeting of Germany's auto industry organization, the VDA. "I hate to admit it, but Tesla did everything right", he said about the Supercharger network, according to EETimes Europe Automotive. Niemand also tried to convince the members that EVs needed to improve significantly. "These cars are slower than those with conventional drive and they have a much lower range – and in compensation they are more expensive," Niemand said, according to EETimes Europe Automotive In the exec's opinion, it's acceptable if an electric vehicle is a little more expensive than the competition, but the model needs to be every bit as enjoyable to drive as one with a combustion drivetrain. Niemand championed the need for a vast recharging infrastructure and used his speech to do some cheerleading for the forthcoming production version of the company's E-Tron Quattro crossover concept. The company claims the future model can do everything Niemand is admonishing the industry about. For example, the version at the 2015 Frankfurt Motor Show could produce up to 496 horsepower for short periods and cover 311 miles on the European testing cycle. The exec's arguments echo those of Audi of America president Scott Keogh who sees a similar EV future in the US. Keogh believes the brand's electric sales could as high as 25 percent of its volume by 2025. The company is getting the public ready for this electrified powertrain transition with the A3 e-Tron plug-in hybrid, but the production E-Tron Quattro takes the idea to the next level. To solve the recharging problem, the company is also working on 150-kW fast charging network with partners. Related Video: