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Audi investing $30.3 billion through 2018 for product expansion

How does Audi plan to reach two million units in annual sales and pay for the 11 new models it's adding to its lineup - an expansion that may include models named SQ2, Q9 and F-Tron? By increasing its investment to 22 billion euros ($30.3 billion US) between now and 2018. That figure represents an increase of about 500 million euros over the previously planned outlay, according to a report by Automotive News, and that could be due to Audi wishing to goad the momentum that pushed it to 1.5 million annual sales two years ahead of schedule.
It's also about staving off the challenges from BMW and Mercedes-Benz. Now that BMW has been able to turn some of its attention away from its "i" series of Megacity cars, it will reportedly spend more than planned in 2014 as it continues the rollout of ten all-new vehicles and 15 new-generation vehicles through the end of next year. Mercedes, having been dropped to third in the sales race, is preparing to add 13 new cars over the next six years.
Audi's money is going into technology, into product like the next-generation TT and the Q1 and production expansions and upgrades all over the world. The expenditure represents just under a fourth of Volkswagen's 84.2 billion-euro ($115.7 US) outlay devoted to taking the number-one global automaker title away from General Motors and Toyota by 2018.

2017 Audi S4 First Drive

For all its power and easy performance, the best thing about the last Audi S4 was its uncanny ability to act like a normal (but very high-spec) A4 for most of its life. Then, when you needed or wanted a bit more speed or a bit more grip, you pushed a button or opened the tap and it became something else. It became a thing with more grip, more poise, more focus, and more gristle, but the changeover between the two S4 characters was seamless. That doesn't seem to be the case with the new one. The latest, B9 A4 has been well received and is probably the best mid-sized premium car out there, so that should have left the S4 a simple job to become the best warmed-up premium mid-sizer. It hasn't quite happened like that. The spec sheet suggests the S4 should come out on top in the fight with the BMW 340i and the Mercedes-AMG C43, but the numbers aren't everything. The engine seems impressive on paper; the all-new EA838 3.0-liter turbocharged V6 was jointly developed with Porsche (and it's closely related to Porsche's next V8, with which it will share non-internal bits like the camshaft chain). The 60-degree V6 weighs 31 pounds less than the old S4's supercharged V6, and it's replete with variable valve timing and lift, centrally mounted fuel injectors, and both direct and indirect fuel injection. That gives it 354 horsepower at 5400-6400 rpm (up 6.5 percent) and 369 pound-feet of torque from 1,370 to 4,500 rpm. That gives it a peak 44 lb-ft higher than the old one, spread across a band 600 revs broader. At 2,000 rpm, where drivers live every traffic light, it has another 74 pound-feet. That's enough motivation to move to 62 mph in 4.7 seconds. There's a new all-wheel-drive system that usually shoots 60 percent of the torque to the back but can ramp that up to 85 percent when it needs to, or it can swing it around to fire more than 70 percent to the front axle. The category benchmarks suggest turbocharged 3.0-liter gasoline sixes are the thing to have, with the Mercedes-AMG C43 using one, the 340i BMW having one (though it's straight), and Maserati's Ghibli also using one. The oddball is Jaguar's XE S, which uses a supercharger. You know, like Audi just ditched. The S4 trumps all but the C43 on power (the nine-speed Benz has 362 hp). While it ties the Ghibli for torque, it again trails the Benz (by 15 lb-ft) though its torque peak hits far earlier (the Benz waits until 2,000 rpm).

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.