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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

Audi A6 and A7 get a fresh face and upgraded equipment

It's been six years since the introduction of the Audi A6 and A7, but the automaker isn't ready to replace them just yet. So, in order to keep up with fresher competition, Ingolstadt has given its mid-range lineup a bit of a refresh. That includes not only a subtle facelift, but some new equipment, as well. The refreshed models benefit from new front-end styling, side sills, rear bumpers, and rear diffusers that look incrementally sharper than the existing versions. The updated interior features LED ambient lighting, with new trim options to join the expanded range of exterior colors and wheel choices. The infotainment system has been upgraded, and there are tablets mounted to the seatbacks to keep rear-seat passengers entertained. The sum total definitely falls in the evolutionary rather than revolutionary category. But they promise to help attract customers to Audi showrooms who might otherwise be lured towards the newer Mercedes E-Class, Cadillac CTS, Jaguar XF, or Maserati Ghibli, while keeping pace with the BMW 5 Series and Lexus GS that are growing just as long in the tooth. The updates are applied not only to base A6 and A7 models, but also to the Allroad Quattro and the S6 and S7 performance models. Audi says these refreshed cars will be available to order soon for delivery in the summer, and best of all, it hasn't raised the sticker prices in the process. Related Video: 04/22/16 Ingolstadt New look and new equipment – Audi A6 and A7 getting even more attractive - New highlights for exterior and interior and for equipment - Even more connectivity and entertainment on offer - Comprehensive equipment package for the Audi A6 allroad quattro Audi is making its full-size A6 and A7 Sportback* car lines even more exclusive. The exterior of the Sedan and Avant is set to become a touch sharper, with all models featuring interior enhancements and new equipment. There is a new, comprehensive equipment package for the A6 allroad quattro*. The updated full-size family is available to order worldwide soon. Deliveries will take place in the summer. Quality, design and technology – those are the key selling points for Audi full-size models. With the start of the new model year, the brand is further enhancing its models.

2016 Audi R8 looks like a promising second chapter [w/video]

Audi shook up the supercar market when it released the original R8 road car. Now, it's hoping to do the same with the second-generation of the handsome mid-engine star. But where the original R8 was something of an analog supercar, boasting a naturally aspirated V8 and a delightful gated shifter, this new model is something much different. Gone is the popular, high-revving 4.2-liter V8 and the snickety-snack transmission, although the 5.2-liter V10 that joined the original R8 later in its life remains. In base form, it turns out 540 horsepower in the second-gen R8, while the V10 Plus model can be had with an impressive 610 ponies. That's good for a sprint to 60 of just 3.5 seconds and a top speed of 201 miles per hour in the former and 3.2 seconds and 205-mph in the latter. A seven-speed dual-clutch transmission is the sole gearbox, sending power to a revised Quattro all-wheel-drive system that's capable of shunting 100 percent of the engine's torque to the rear axle. Meanwhile, Audi has managed to shave 441 pounds by using a new Audi space frame, with more aluminum and carbon fiber than before. Weighing in at just 3,205 pounds, the R8 is slightly lighter than the new, V8-powered Ferrari 488 GTB, although it's not quite as light as its cousin, the 3,135-lb Lamborghini Huracan. And of course, we can't forget to mention the R8's new look. It's very clearly an evolution of the first-gen's handsome styling. A strong grille and canted headlights, inspired by the TT and the concepts that came before it, highlight the front end, while Audi has opted to bisect the last-gen car's side blades with a body-color section of sheet metal. In back, slim taillights, exhausts that have been integrated into the rear bumper and a central diffuser are the main styling features. Opt for the V10 Plus, and you'll get a sizable rear wing, for added downforce. Take a look at our full gallery of live images from Geneva for a closer look at the new Audi R8.