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Recharge Wrap-up: Audi Q5 EV built in Mexico, Tesla's $1.26B expansion

Audi will build an electric version of its Q5 in Mexico, according to anonymous sources close to the matter. Audi plans to shift all Q5 manufacturing to its $1.3 billion factory in San Jose Chiapa, which is set to open this fall. Initially, the company will build internal-combustion Q5s at the plant, with an electric version to be introduced in the near future. One source tells Automotive News Europe that Audi is currently training personnel ahead of the facility's opening. The Q5 is currently built in Ingolstadt, Germany, with some being assembled in China and India for sale in those markets. Read more from Automotive News Europe. Tesla is applying for $106 million in tax breaks as it expands its Fremont factory to the tune of $1.26 billion. The expansion comes as the electric automaker looks to accelerate production in order to meet demand for the upcoming Model 3 sedan, and the buildout will include a new production line dedicated to the model. Tesla plans to ramp up production to 500,000 units a year in 2018, though Tesla CEO Elon Musk says the Fremont factory could potentially build a million cars annually. Read more at Electrek. Formula E is partnering with the sports charity StreetGames to help bring sports opportunities to disadvantaged communities. DS Virgin Racing driver Sam Bird, who is currently in third place in the 2015/2016 season's driver standings, will head to his hometown to join Roehampton FC for a soccer tournament on June 27. "If I hadn't been a racing driver, I'd like to think I could have had a career as a professional footballer," Bird says, "so I might be able to give them a few hints and tips on ball control as well as explaining car control!" StreetGames will also be represented at the London ePrix with sports activities for attendees. Read more from Formula E. Related Video: Featured Gallery Tesla Model 3 View 18 Photos Related Gallery 2014 Audi Q5 TDI View 28 Photos News Source: Automotive News Europe, Electrek, Formula E Government/Legal Green Motorsports Plants/Manufacturing Audi Tesla Green Automakers Electric recharge wrapup

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.

Audi A5 and S5 freshen up for 2017

UPDATE: A previous version of this story mischaracterized the 2017 S5's engine configuration. The article has been updated. Well, here's the new Audi A5 and S5. They look a lot like the old ones, but just a tiny bit better. In other words, the redesigned coupes received the same treatment as their four-door counterparts, the A4 and S4. While the German press materials mention both gas and diesel engines, we expect the A5 to carry on in the US with petrol power only. Like the current A5, a 2.0-liter, turbocharged four-cylinder will serve as the base engine, but will probably get a similar power bump as the A4 – Audi hasn't released official figures yet. The four-door had its base output bumped from 220 horsepower and 258 pound-feet of torque to 252 hp and 273 lb-ft of torque. The S5 is a more interesting proposition than the S4. Where the old S5's 3.0-liter, supercharged V6 produced 333 hp and 325 lb-ft of torque, the new, turbocharged, 3.0-liter six-cylinder pumps out 354 ponies, according to the global press materials. That figure, fans of the old 4.2-liter V8-powered S5 will note, is identical to the original S5 that came out for model-year 2008. Torque figures aren't available yet, but we'd bet on at least a small increase in torque. Still, the increase in power is good for a 4.7-second run to 62 miles per hour, a 0.2-second improvement over the current car's 0-60 time. Audi claims it will offer the A5 with both six-speed manuals and seven-speed dual-clutch transmissions, but we wouldn't be so sure about that stick here in the US. The only available gearbox on the A4 is a seven-speed S-Tronic – coupes are inherently more sporting than sedans, but we aren't sure that's justification for Audi to offer a manual-trans A5 here in the US. Audi only mentions an eight-speed automatic for the S5. So no, the German press materials aren't a good indicator of the US-market A5. What we can rely on, of course, are the official images. The original A5/S5 was a handsome car, but Audi's designers have done a swell job styling the 2017 model. It looks good, and is somehow even more refined than last year's car. Audi's new corporate grille works well on a coupe body, although the powerful creases in the hood might be a little too powerful. The tail is lovely, like a prettier A3. The bodies are better looking, but they're also lighter and more aerodynamic, too. The A5's coefficient of drag is down to a slippery 0.25, while Audi's engineers lipo'd 132 pounds of fat.