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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 Canada surprises out-of-warranty owners in a good way

One of the worst parts about going to a dealership is sitting around waiting for the courtesy shuttle to show up and transport a group of strangers to their places of work or homes. Well, Audi of Canada found a nice way to surprise customers who brought their out-of-warranty vehicles in for a scheduled Health Check by replacing dealer's normal shuttle with a 2014 Audi R8 V10.
The R8, painted to resemble a safety car or police car, gave the customers a ride home - even stopping at a coffee shop along the way. Needless to say, the stunt got plenty of attention from passers-by and was quite a hit with the Audi customers, too. Scroll down to watch video of the customers getting the ride of a lifetime, which we're sure left some of the in-warranty customers at least a little jealous as they drove off in dealer loaner cars.

Recharge Wrap-up: Electric Bayliner conversion, China considers EV mandates

An electric mobility enthusiast converted a Bayliner boat to electric power. Using 10 Tesla modules to build a 32-kWh battery pack, Scott Masterson's 2016 Bayliner 175 now uses an electric motor in place of the original 3.0-liter Mercruiser engine. With a top speed of about 53 mph and a range of about 25 miles, Masterson can enjoy a nice cruise on the water without the accompanying gas fumes. He says the conversion wasn't all that complicated, and it took him about three months of part-time work. Check it out in the video above, and read more at Electrek. Audi's updates to the 2017 A3 include the E-Tron plug-in hybrid. Inside the car, it will likely get Audi's "Virtual Cockpit" instrument display. The MMI infotainment system will be updated, with available Apple Carplay and Android Auto functionality. Slight changes to the headlights, taillights, and grille will make up the bulk of the exterior visual changes. Its powertrain will remain unaltered from the 2016 model, including its 83 MPGe combined rating and 16 miles of all-electric driving range. Read more at Green Car Reports. Hyundai has delivered its first hydrogen-powered car to Quebec. The Centre de Gestion de l'Equipment Roulant (Rolling Stock Management Center), which manages the province's government fleets, took delivery of a 2016 Hyundai Tucson Fuel Cell. It is leased in partnership with the University of Quebec's Hydrogen Research Institute of Trois-Rivieres, where the vehicle will be refueled. Read more from Green Car Congress. China is considering mandates for cleaner cars similar to those imposed by California. Unlike its current subsidy-based incentives, China could potentially require automakers to either produce or import more electric vehicles or purchase carbon credits from automakers that do. A draft of the legislation from the National Development and Reform Commission would fine non-compliant automakers at five times the price of the credits. "Without question, this will be good for the industry and will promote the development of all types of clean-energy vehicles," says China Association of Automobile Manufacturers Deputy Secretary General Ye Shengji. Compliance would be voluntary for smaller automakers. Read more from Automotive News.