1965 11-window Vw Microbus on 2040-cars

Auto blog

Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

Red Bull says VW deal in F1 now 'up in smoke'

The Volkswagen diesel scandal will likely have long-term repercussions, reverberating across the industry potentially for years to come – the likes of which we're only beginning to discover. And that could include Formula One. Now if you're thinking that VW doesn't compete in F1, you're right. Even between all of its various brands, the group has little history in post-war grand prix racing. But if was getting close. As we reported last week, the German auto giant and the Red Bull Racing team were nearing an agreement that would (or would have) seen the former take over the latter. The deal was said to include VW developing a new power unit (as the combined turbo engine and electric motor are referred to in the sport) and acquiring the multiple championship-winning team, with the energy drink company that now owns it transitioning back to a more traditional sponsorship role. It remained to be seen, though, just which of its many brands VW would choose to promote through the new program. Team principal Christian Horner, however, now says that the deal has "seemed to go up in smoke." That doesn't mean that it's off the table entirely and indefinitely, but it would follow logically that between the scandal it's currently facing, the ensuing change in leadership, and drop in stock value, the board in Wolfsburg has other problems to focus on and devote its resources. While ostensibly a logical move for Volkswagen, that would leave Red Bull in a difficult position. The Renault partnership that once led to utter domination with four back-to-back world championships has since fallen dramatically off pace. Although it impressively held on last season to come second in the championship with three race wins, it hasn't won a race yet this season – and heading into this weekend's Japanese Grand Prix, stood fourth in the standings... its worst position since 2008. "With the way the regulations are, unless you have a Mercedes or Ferrari power unit it is quite simply impossible to compete," said Horner. "And if we are not able to compete, then you have to question what is the validity of remaining in F1." If the Volkswagen deal does indeed fall through, the team will likely need to buy its power units from another supplier – with its chief rivals as the only likely candidates. Related Video:

Head of dieselgate clean up set to leave Volkswagen after a year on the job

After just over a year on the job, Volkswagen's compliance chief Christine Hohmann-Dennhardt is set to leave the automaker by the end of the month. In an announcement, Volkswagen confirmed the departure, saying the separation was due to a difference of opinions regarding the role and duties of the compliance chief. Automotive News Europe reports that there were frequent clashes between Hohmann-Dennhardt and senior Volkswagen employees. Hohmann-Dennhardt was brought in on last year to help manage the cleanup in the wake of the diesel emissions scandal. She came over to Volkswagen from Daimler, parent company of Mercedes-Benz. Before that, she served as a judge in Germany's constitutional court. Volkswagen hasn't announced a replacement. Related Video: News Source: Automotive News EuropeImage Credit: Getty Green Hirings/Firings/Layoffs Audi Volkswagen Emissions Diesel Vehicles dieselgate diesel emissions volkswagen diesel