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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.

Audi introduces leaner, fitter second-generation Q7

After a long run on the market, Audi has finally signaled the end of the first-generation Q7 with the introduction of the long-awaited second-gen version of the brand's first crossover. The 2016 Q7 is a far lighter machine than the vehicle it replaces, thanks to ample use of hot-shaped steel and aluminum. Beyond that, the Volkswagen Group's MLB platform will allow the fullsize Audi to accommodate a range of engines, including more potent versions of the US market's 3.0-liter, supercharged V6 and 3.0-liter TDI. On top of that, the next-gen Q7 will also be available as a diesel plug-in hybrid, complete with a version of the brand's Quattro all-wheel-drive system. The Q7's new design, meanwhile, gives the car an almost wagon-like appearance and profile. The "Singleframe" grille is wrapped in an aluminum-looking surround, not unlike Audi's smaller RS Q3. Audi's cleanly styled headlights flank it, while the large taillights aren't as aggressively angled as Audi's other crossovers. The cabin is lavish, featuring a typically stylish design with plenty of tech. A 12.3-inch TFT display takes the place of a conventional instrument cluster, while the center stack is crowned by its very own display. Even the HVAC display controls are handsome. You can see exactly what we mean in our gallery of live images of the new Q7, straight from the floor of the 2015 Detroit Auto Show.

2017 Audi RS5 DTM racer is a smorgasbord of carbon-fiber wings

Along with the reveal of the new RS5 coupe, Audi took the wraps off its corresponding DTM racer here at the Geneva Motor Show. This concurrent debut strategy is completely by design. "For the first time, we developed a new DTM car in parallel with the production model. This underlines once again how closely motorsport and production work together at Audi," said head of Audi Motorsport Dieter Gass. As much as Audi would like you to believe its DTM racer shares a lot in common with its production RS5 ... well, it doesn't. Gone is the new biturbo V6, and in its place is a 4.0-liter V8. It's not a Quattro – all DTM racers are rear-wheel drive – and the chassis is a carbon-fiber monocoque. And, of course, there is an extremely complex set of wings, vanes, and splitters that you'd never see on a production car. View 15 Photos Interestingly, the 2017 DTM regulations actually reduce the total amount of downforce allowed. That ought to mean slower cars, but Audi promises the opposite is true, due to sticky new tires and a 4.0-liter V8 engine tuned to deliver "more than 500 horsepower." That's more than last year, thanks to changes made to the air intake and cooling systems. Audi won the Constructor title in DTM last year with the old RS5 racer, so the pressure is on to follow that feat again in 2017. We'll find out soon enough how good the new car is – the 2017 DTM season starts on May 6 in Hockenheim. Related Video: