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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

Who doesn't want an Audi RS7 with turbo horns?

Very little is known about the origins of this exhaust-horned and turbo-eyed beast. The guys at Road & Track tracked it down as far as a Russian tuner named Total Race. Aside from that, what we have here is video of an Audi with no hood and two huge turbos sitting on top of its 4.0-liter V8 instead of nestled in the engine's vee where they belong. And those crazy and haphazardly routed exhausts. We also don't know how much power this thing is making, but from the way it launches away from the camera, we're going to go with "a lot." The YouTube clip claims this is the Stage 10 tune, but who knows. Granted, the drivetrain probably can't take everything this Frankensteined engine could theoretically put down, so there's likely some kind of electro-wizardry at play limiting output until it at least hooks up. And if traction control still exists somewhere in there it might be helping keep the tires from melting. Chances are some part of the driveline will grenade itself if you try this too many times, but hey, as long as you get one or two decent YouTube vids first, right? Even if it doesn't add any meaningful power output beyond the RS7 Performance's already plentiful 605 ponies, we can't bring ourselves to care. The high-pitched sound of the exhaust from those heat-wrapped pipes jutting out like the horns of a crazed antelope are simply priceless. Thank you, Russia. Related Video:

Audi TT spy shots reveal revised lighting elements

As we inch closer to an expected Geneva debut for the next-generation Audi TT, our latest round of spy photos are starting to give us an even better look at Audi's latest sports car. This time out, we're getting more details on the car's head and taillights.
It's safe to say that the new headlight design will not incorporate the twin rally lights we see mounted on the next TT's grille, but our spy photos do show off the wide, angular new lights in even greater detail than previous photos. The rear lights, meanwhile, look like they'll retain a similar shape to what's seen on the current car, while new LED details lend a degree of freshness to the look.
As we mentioned, we're predicting Audi will debut the next TT at the 2014 Geneva Auto Show in March. We expect, though, to have more on the car before that time. Stay tuned.