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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

New Audi Q5 refines original model's winning formula

The first Audi Q5 made a name for itself as a baby Q7, hitting a Goldilocks zone in the crossover segment and challenging BMW, Mercedes-Benz, and Lexus for supremacy in what would become one of the luxury market's most important segments. The Q5 is already Audi's best-selling vehicle globally, underscoring its importance to the German brand. Like its predecessor, the second-generation Q5 takes the Q7's looks and tech, then distills it into a smaller package. But unlike the Q7, the Q5 doesn't look quite so dowdy in its redesigned body. We'll attribute that to the smaller front and rear overhangs, which keep the Q5 looking like a crossover instead of a high-riding wagon. The face is mostly a carbon copy of the Q7's, with a prominent grille featuring a silver surround and flanked by a set of clean, stylish headlights. In back, the smaller Audi gets more expressive taillights that harken back to the first-generation model in their lighting signature. We aren't really sure what Audi was going for with its two-tier rear bumper, but it doesn't work and is inarguably the worst piece of an otherwise fashionable design. Aside from restyling the Q5's body, Audi managed to both expand it in every direction and trim nearly 200 pounds of body fat through a mix of "maximum tensile strength" steel and aluminum. Audi is also promising an impressive aerodynamics gain for the new body – the company's engineers slashed the coefficient of drag from 0.33 to 0.30. That should mean a quieter and more efficient drive. Like the Q7, the new Q5 benefits from Audi's push into advanced driver information systems. It gets the 12.3-inch TFT display, also known as Virtual Cockpit, on top of the 8.3-inch MMI display atop the center stack. MMI takes a page from Apple with its Personal Route Assist. Much as CarPlay will automatically display how long it takes you to get home, Audi's new system can study an owner's behavior and suggest the best route to a given spot, even when the navigation isn't active. While we're geeked about the new tech, the powertrain front is less newsy. The European press release lists one gas engine – a 252-horsepower 2.0-liter, turbocharged four-cylinder – and four TDI powertrains. Those latter engines are dead to the US, as Audi faces the backlash from parent company Volkswagen's diesel emissions scandal.

Audi boss: no to minivan

Well done to you, Rupert Stadler. We salute you. The Audi exec went on record during an interview with Automotive News and basically shut the door on the idea of a Audi-badged minivan. When asked by AN, Stadler pointed to the high conquest rate enjoyed by crossovers and SUVs compared to minivans. On top of that, Stadler argued against vehicles like the BMW 2 Series Active Tourer by pointing out that customers tend to shy away from minivans because of the image they put forth. "Consumers are more likely to switch to an SUV and are more likely to pay a premium price because SUVs are considered more emotional," Stadler told AN. "We would rather be the emotional choice than the rational choice." It's not all good news, though. Stadler gave a resounding "no" to an A8 wagon, based on the Prologue Avant Concept, as well as a BMW 6 Series rival. Instead, Audi will focus on the upcoming Q8 SUV, which the exec said was "more likely to be a winner than a large coupe." The company is also hard at work on additional Sportback models, although Stadler didn't elaborate on which models could get the five-door treatment. Related Video: