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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 RS5 gets big turbocharged power and an angry new look

Menace has always been one of the keys to Audi's RS 5 coupe, from the fat wheel arches to the rumbling evocative exhaust note to the brutal straight-line performance. That's not going to change with the new version, but Audi is talking loudly and proudly about how the RS 5 debuts the new RS design language, partly in the hope that people don't labor on the disappearance of its V8 engine. Yes, the all-new RS 5 Coupe uses the same Porsche-engineered biturbo V6 as the Porsche Panamera, and uses it to such effect that it extracts 444 horsepower and 443 pound feet of torque from its 2.9 liters of displacement. Those 443 lb-ft is a full 125 more than the V8 could ever muster, and it's available from 1,900 rpm to 5,000 rpm. That kind of power is sufficient to push the RS 5 to 62 miles per hour in 3.9 seconds on the way to a limited 155-mph top speed (there's an optional 174-mph limiter, too). The all-wheel-drive Quattro RS 5 Coupe doesn't suffer much in performance in the switch from the naturally aspirated 4.2-liter V8 to the force feeding of a V6, but it remains to be proven whether the sound can be as captivating. The Porsche-sourced engine continues the current trend of "hot vee" engines, situating both of its turbochargers inside the vee-angle of the engine, and combines centrally-mounted direct fuel injectors with a short stroke to boost power and improve economy. The high-compression Miller-cycle motor also lets the RS 5 Coupe pull its consumption down 17 percent to 32 miles per gallon (or 197 grams/km of CO2 emissions) on the European driving cycle. Expect US mileage numbers to be significantly lower. The new RS 5 is also significantly lighter, pulling 132 pounds from the previous V8-powered model's mass, despite all the turbo plumbing, to weigh 3,649 pounds. A BMW M4-style carbon-fiber roof helps keep the weight down. Audi feeds its newfound V6 power through an eight-speed automatic transmission and permanent all-wheel drive, with 60 percent of the drive nominally headed to the rear end. The hard-turning sport differential is an option. Audi's reborn RS 5 rides on five-link suspension systems at both ends to keep suspension bits precisely location and improve ride quality, while sitting 0.8 inches lower than the standard A5 Coupe. It has the usual Audi Sport array of go-faster options for its go-fastest front-engined coupe, including the more aggressive Dynamic Ride Control damping system, carbon-ceramic brakes and sharper steering ratios.

Audi CEO Stadler gets 5-year contract extension

Audi CEO Rupert Stadler will keep his seat at the top thanks to a contract extension. Volkswagen didn't divulge the length of the new contract, but German newspaper Frankfurter Allgemeine Zeitung said the term is five years. Stadler took over the current position in 2007 when current VW CEO Martin Winterkorn left it. That year the brand sold 93,506 in the US and 964,151 in total worldwide; last year it sold 158,061 in the US and 1,575,480 in total worldwide.
Even though the brand has managed only about half the US sales of its two main rivals, it led the charge globally through the first two months of this year. Over the next few years we'll see its US efforts increase with a $30.3-billion investment, 11 new models and the opening of its first North American plant. And right now it can make hay with its World Car of the Year award winner, the A3.
In addition to Stadler, VW sales boss Christian Klingler is said to have received a five-year contract extension, and VW China head Jochem Heizmann has earned another two years on the job.