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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.

Next-gen Audi RS4 coming, might make it to America

Let us be frank: The second-generation Audi RS4 was one of the best, most exciting cars of the past decade. A four-door sedan with a 4.2-liter V8, all-wheel drive, and a six-speed manual transmission? What wasn't to like? While you can still get a taste of the B7 RS4's character with the current RS5, it isn't quite the same. That's why we're giddy about a new report from Car and Driver, which claims that not only is a new RS4 on the way, but that it could, maybe, possibly return to the United States. As previously reported, the fourth-generation RS4 will go back to a twin-turbocharged V6, after two generations of unassisted V8s under the hood. As per RS4 tradition, it will also be limited to a five-door Avant body style, because "that is what people expect from the RS4," Quattro GmbH boss Heinz Hollerweger told Car and Driver. An RS5 Sportback could also be in the offing, which might remain more true to the character of the first US-market RS4. The US question, though, remains an iffy one, largely because of the Avant shape. Audi has reduced the number of wagons it's offered in the US over the years, dropping the A4 and A6 Avant, although the former is sort of still offered in the form of the Allroad. But that position might be enough to keep the next-gen RS4 off our shores, although as the Quattro boss told CD the US market is changing and "there is more demand there [for wagons], so maybe that will change." Well, Herr Hollerweger, we're here to tell you that America loves wagons, and that you should put the next-gen RS4 on sale over here post haste. Danke.

Hackenberg says next Audi A4 set for Frankfurt debut

The current Audi A4 is among the oldest vehicles in the brand's lineup. Having debuted back in 2008, it's long overdue for an update, and according to our friends at Indian Autos Blog, that'll happen in roughly six months. IAB spoke to Audi research and design chief Ulrich Hackenberg, who indicated that the fifth-generation A4 will be shown at the 2015 Frankfurt Motor Show in September. The new sedan will be unveiled in "a pre-presentation" before the auto show itself, Hackenberg told IAB, adding that "you'll be happy to see it." Information beyond that, though, remains sparse. Based on our previous spy photos, we expect the new A4 to ride on the Volkswagen Group's modular MLB Evo platform that's been stretched to accommodate a larger wheelbase. The styling, meanwhile, will be more evolutionary, inspired in part by the new TT. Expect more on the next-generation A4 as September approaches. Related Video: