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Recharge Wrap-up: Audi Q5 EV built in Mexico, Tesla's $1.26B expansion

Audi will build an electric version of its Q5 in Mexico, according to anonymous sources close to the matter. Audi plans to shift all Q5 manufacturing to its $1.3 billion factory in San Jose Chiapa, which is set to open this fall. Initially, the company will build internal-combustion Q5s at the plant, with an electric version to be introduced in the near future. One source tells Automotive News Europe that Audi is currently training personnel ahead of the facility's opening. The Q5 is currently built in Ingolstadt, Germany, with some being assembled in China and India for sale in those markets. Read more from Automotive News Europe. Tesla is applying for $106 million in tax breaks as it expands its Fremont factory to the tune of $1.26 billion. The expansion comes as the electric automaker looks to accelerate production in order to meet demand for the upcoming Model 3 sedan, and the buildout will include a new production line dedicated to the model. Tesla plans to ramp up production to 500,000 units a year in 2018, though Tesla CEO Elon Musk says the Fremont factory could potentially build a million cars annually. Read more at Electrek. Formula E is partnering with the sports charity StreetGames to help bring sports opportunities to disadvantaged communities. DS Virgin Racing driver Sam Bird, who is currently in third place in the 2015/2016 season's driver standings, will head to his hometown to join Roehampton FC for a soccer tournament on June 27. "If I hadn't been a racing driver, I'd like to think I could have had a career as a professional footballer," Bird says, "so I might be able to give them a few hints and tips on ball control as well as explaining car control!" StreetGames will also be represented at the London ePrix with sports activities for attendees. Read more from Formula E. Related Video: Featured Gallery Tesla Model 3 View 18 Photos Related Gallery 2014 Audi Q5 TDI View 28 Photos News Source: Automotive News Europe, Electrek, Formula E Government/Legal Green Motorsports Plants/Manufacturing Audi Tesla Green Automakers Electric recharge wrapup

VW brands excluded from Wards 10 Best Engines for 2016

You definitely won't be seeing a powerplant from Volkswagen or Audi on the 2016 Ward's 10 Best Engines list. In a serious rebuke against them, WardsAuto is excluding all VW/Audi powertrains for at least this year after the German automakers' ongoing emissions regulations evasions. There's no guarantee of the companies returning for 2017, either. In a story on its website, WardsAuto executive editor Tom Murphy writes that the ban lasts "until we are convinced the culture of deceit has been purged, fines have been paid and regulators are satisfied." That could be a while, the way things are looking. The exclusion knocks three powertrains out of the running for this year's list. As a winner last year, WardsAuto would usually test VW's 1.8-liter turbocharged four-cylinder again for 2016. Plus, it planned to check out the 2.0-liter turbocharged four-cylinder from the Audi A6 and the plug-in hybrid from the A3 Sportback E-Tron. In the story, Murphy finds VW's actions particularly despicable because of what they could be doing to the popularity of diesel passenger cars in this country. "BMW, Mercedes-Benz, General Motors, and Fiat Chrysler also sell light-duty diesel engines in the US, but their sales outlook suddenly has grown murky, thanks to VW's shenanigans," he writes. So far, Jaguar Land Rover is remaining confident of US consumers continuing to buy diesel models, though. We'll be able to see the real effects of VW and Audi's ban in a few months because the 2016 Ward's 10 Best Engines will be published December 10. With two major automakers out of the running, their rivals will likely greet this as a better chance to make the grade.

Automakers paying Chinese dealers for lower-than-expected sales

The Chinese dealers vs. foreign manufacturers story won't quit. It began with a story on the struggles faced by FAW-Toyota joint venture dealers, with supposedly 95 percent of the showrooms losing money, and 10 percent of them doing so poorly that they'd have to exit the business. The problem is mandated sales targets, most set when the country's economy was racing. Now that things have slowed, China's dealers are swimming in unsold cars and the costs to keep them. In the case of FAW-Toyota, dealers asked Toyota to hand over 2.2 billion yuan ($355 million) to help address the situation. That was followed by a report noting the issues that Honda, BMW, and Nissan dealers are having with the same issue, revealing that the Chinese Automobile Dealers Association (CADA) had taken the highly unusual step of writing to the Chinese government to complain. Now Reuters reports that CADA is not only pressing its case even harder, it's being open about it: it announced that BMW agreed to pay dealers 5.1 billion yuan ($820 million) to alleviate poor profits last year. Unnamed sources said Audi has thrown 2 billion yuan into the kitty for subsidies, and Daimler has contributed "about 1 billion yuan" to its dealers. The battle isn't just about 2014, but how business will be run in 2015 as well: Chinese Porsche dealers have requested the automaker lower its 2015 target of 64,000 cars, which would be a 40-percent increase on its 2014 sales of 46,931 vehicles. One analyst called it "shocking" that the CADA has taken its fight public, while CADA comments continue to imply that dealers have been railroaded to the cliff's edge without recourse. "Due to the difference in status," it's deputy secretary said, "individual dealers are not willing to, or don't dare to, talk frankly with the carmakers...." Both parties need one another, so they'll figure out a way to make it work – but that could mean acknowledging the Chinese market is behaving more like a mature one, not an emerging one. News Source: ReutersImage Credit: Lintao Zhang/Getty Images Earnings/Financials Audi BMW Porsche Toyota Car Dealers Luxury