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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.

The Audi Q7 doesn't want me to speed and I'm not totally okay with that

I'm a big fan of adaptive cruise control. My commute is 50 miles each way, almost all on freeways here in Michigan. If everyone drove at the same speed there'd be little need for smart cruise, but I live in reality where people camp out in the left lane and practice going from the gas to the brake for no apparent reason. Radar cruise systems let me set my max speed and just worry about steering. But Audi has gone a step further with its adaptive cruise system. And it's a step I'm not sure I'm comfortable with. Audi's system, as featured on the new Q7, has a feature that uses the forward-facing camera to read speed-limit signs, something that's becoming common in Europe and is now making its way here in the continent's luxury cars. That part's fine; it's useful information and gets nicely integrated into Audi's Virtual Cockpit screen and on the head-up display. What the car then does with that info, however, is the issue: If your set cruise speed is higher than the speed on a sign you pass, the car will drop the cruise speed down to the limit. But it's not perfect. On one stretch of highway, the Q7 picked up the speed limit posted on the parallel service road, dropping me down from a little above the limit to 30 mph. It didn't slam on the brakes, but it did confuse me at first and require intervention before the car slowed down to a crawl. This feature isn't ready for primetime. Luckily, it can be turned off or switched to a mode where it gives you a warning that the speed limit has changed (or at least that the car thinks it has) and lets you react before the set cruise speed is changed automatically. When activated, it's a safety issue. A more serious one, in my opinion, than driving a little over the speed limit, especially when it means interrupting the flow of traffic. There's nothing predictable about a car trundling along in the fast lane and then completely letting off the gas. It's not predictable for the driver behind you, and it's not something a driver expects of their own vehicle. Yes, this feature was obviously developed for people driving on the Autobahn, where speeds can drop down from unlimited to a slow crawl pretty quickly when entering a construction zone or approaching a built-up area. German roads also have more consistent signage, so the false-positive scenario I experienced might not have come up there.

X1, 3 Series power BMW back into global luxury autos sales lead

BMW managed to eke ahead of Audi for the global luxury sales crown in February. According to Bloomberg, BMW saw deliveries swell by 7 percent in February, besting the 3.2 percent jump enjoyed by Audi and giving BMW a 407-unit delivery lead over its rival last month. Mercedes-Benz, meanwhile, continued to falter, with the brand selling some 37,229 fewer machines than BMW, whose factories are running at full capacity to keep up with demand. Models like the X1 (shown above) enjoyed a sales increase of 40 percent in February while the company's bread-and-butter 3 Series jumped by 26 percent.
Mercedes-Benz hopes to stem its continued market share loss with the addition of the entry-level CLA sedan to its portfolio in April. The company is set to roll out an updated version of its cash-cow E-Class at the same time, and a new-generation S-Class will follow along shortly thereafter. Meanwhile, the company is increasing production to meet demand for its A and B-Class models.