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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.

Wagons make a bit of a comeback, with new models, sales on the rise

Consider this an official invitation to hop on the wagon bandwagon. There's still tons of room because, well, it's a wagon (and market share is still extremely small). But according to new data, the segment is growing. According to a report from Bloomberg, using data from Edmunds.com, roughly 211,600 Americans purchased wagons in 2018. That is technically down from the 237,600 sold in 2017, but wagon sales in the U.S. are up 29 percent from where they were five years ago. It's also the third year in a row that wagon sales broke the 200,000 mark. The sales trends have been somewhat representative of the availability of wagons. New models have debuted during the past 5 years and therefore offer more opportunity at more brands to buy wagons. In addition to more modest cars such as the Volkswagen Golf Sportwagen, several luxury and performance brands are offering wagons today, such as Mercedes-Benz, Audi, Porsche, Jaguar, Volvo and Buick. (Bloomberg's headlines make the point that "crossovers are for the Kardashians," and wagons are just, well, classier.) This uptick in brand-name availability, as well as extremely well-executed design on most of the wagons currently available, has helped increase the segment's desirability. That, and its ability to better accomplish the same tasks at hand while standing out from the crossover and SUV crowd. Still, the posted numbers represent a small fraction of the total vehicles sold. According to the data, wagons only held a 1.4 percent market share in 2017, the segment's best recent year. Wagons hold a steadfast place in America's past, and they're writing an interesting new story. With the downturn in traditional cars, they may continue to create an unexpected narrative. Related Video: News Source: Bloomberg, Edmunds Audi BMW Buick Volkswagen Volvo Wagon station wagon

2018 Audi RS5 First Drive | Boosted for your enjoyment

Spoiler alert: if you dig snorty, long-winded, naturally breathing V8s, you'll have to add the 2018 Audi RS5 to the long list of cars abandoning the setup. Silver lining: if you like heady acceleration, unraveling twisty roads, and gobbling endless stretches of lonely tarmac, the new RS5 offers considerable gains over its big-engined predecessor. Bigger, Lighter, Gruntier Audi's (slightly) nastier looking new coupe has gained 0.6 inches of width and wheelbase and 2.9 inches of length but lost 132 pounds of mass along the way. Even better, the smaller 2.9-liter twin-turbo V6—the same one found in the Porsche Panamera—produces the same 450 horsepower as before, but gains a thumping 125 lb-ft of torque over the old V8, bringing the grand total of twist to 442 lb-ft. As with the previous RS5 you can't get a manual, but this time Audi swaps their signature dual-clutch transmission with an 8-speed torque converter unit from ZF. The reasoning is sound: the DSG 'box couldn't handle the engine's output, which produces more torque than the R8's mighty V10 – #bigtwistproblems. The RS5's weight loss stems from strategic use of aluminum and the loss of the stonking V8 (ditching it for the twin-turbo V6 saved 68 pounds alone). Weight distribution is, of course, also aided by the lighter front end, and the rear trapezoidal suspension setup has been supplanted with a five-link arrangement for smoother ride and sharper handling. Interior space also benefits from the larger footprint, with rear seat legroom benefiting most from the roomier dimensions. Behind the Wheel The roads from Toulouse, France to the tiny principality of Andorra offer contrasting extremes, from arrow-straight superslab to ultra-technical twisties – an excellent test of the RS5's performance repertoire. The updated cabin presents Audi's typically understated style, with available honeycomb top-stitched leather seats that are supportive but not so tight as to be constricting. HVAC slats form a continuous extension across the dashboard (a la Q7), and the steering wheel and shifter can be trimmed in either perforated leather or Alcantara. The first thing you'll notice in the RS5 are the low frequency sounds, which round out the otherwise muted engine noises.