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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

Audi TT Offroad concept packs 408 hybrid horsepower, yet returns 123 mpg

Audi took the wraps of its TT Offroad Concept at the Beijing Motor Show, after teasing us with sketches earlier this month. "The Audi TT offroad concept provides a glimpse of how we might imagine a new model in the future TT family," says Prof. Dr. Ulrich Hackenberg, Member of the Board of Management for Technical Development. "It combines the sporty genes of the TT with the strengths of a compact Audi SUV."
The latest in Audi's eTron show cars reminds us an awful lot of the the Audi Allroad Shooting Brake concept that debuted a few months ago at the Detroit Auto Show. In addition to very similar physical appearances, the two share the same plug-in hybrid propulsion systems (the "plug-in" part is a bit misleading, as the concept simply needs to be parked over an inductive pad to take advantage of Audi Wireless Charging technology).
Proving that hybrid power never has to be a compromise, the TT Offroad Concept packs a 292 horsepower turbocharged 2.0-liter four-cylinder under the hood. The combustion engine is assisted by two electric motors (rated at 40 kW at the front and 85 kW at the rear) to provide a total system output of 408 horsepower and nearly 480 pound-feet of torque. With all-wheel drive, the concept hits 60 mph in 5.2 seconds and tops out at 155 mph - while returning a provisional fuel efficiency of 123 miles per gallon equivalent.

Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.