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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.

A8 Audi Exclusive Concept shows off brand's interior chops

It's an envious position to be in, not wanting a normal Audi A8 but not wanting to make the statement that comes with a Bentley or a Rolls-Royce. What's an oligarch to do? Well, if you have the funds, consider the A8 Audi Exclusive Concept (yes, that's the actual name), a modified A8L W12 that's limited to just 50 units and features a significantly upgraded interior. Think of it as a followup to the A8 Exclusive Concept, shown at Frankfurt in 2011.
Aniline leather from Italian furniture manufacturer Poltrona Frau is fitted over the seats, while diamond stiching accentuates the Agatha Cognac color. Granite Gray piping and stitching on the seats provides some contrast - not just with the leather but the natural, olive ash inlays on the dash. Granite Gray Nappa leather lines the instrument panel and steering wheel while a white Alcantara headliner sets off the whole package. Not that it's a shock, but this looks like a really nice place to spend some time.
It's unclear how much the exclusive concept treatment adds on to the already lofty $135,900 starting price of a US-spec A8L W12, or if the special interior treatment will even be available in the North America. Production is set to kick off next March. Scroll down for the full statement from Audi.

Audi chooses A3 as its Super Bowl darling

With Super Bowl XLVIII less than two months away, we're sure to hear plenty of news about automakers and their various plans for in-game commercials. Audi has announced that it will return for its seventh year of Super Bowl advertising, but few details were provided about the spot other than the fact that it will focus on the all-new 2015 A3.
The 60-second ad will air during the third quarter of the game, and while Audi did not say how much it is spending on the spot, Ad Age says that a 30-second commercial will average around $4 million for next year's Big Game. Last year, Audi's choose-your-own-adventure "Prom" commercial was the second favorite video in our unofficial poll of readers, but the competition should heat up even more this year with General Motors returning to Super Bowl advertising after taking a year off and Jaguar preparing its first-ever Super Bowl ad to introduce the F-Type Coupe.