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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

VW Passat GTE plug-in hybrid starts at ˆ44,250 in Germany

Want to know how much to put away for a new Volkswagen Passat GTE? Well, first you'll have to move to Germany, or another market where the model will be sold – because it's not being offered in the US. In fact, it's based on a Passat that's altogether different from the one we get in America. But, once you've arrived at a place where the Passat GTE is available, you'll need to shell out about ˆ45,000. That's equivalent to $50,000 US at current exchange rates, which is more than the starting MSRP on any VW currently available Stateside. VW just announced domestic pricing for the new plug-in hybrid, which starts at ˆ44,250 for the sedan and ˆ45,250 for the wagon. For that much scratch, you get a Passat with a 1.4-liter turbo four good for 154 horsepower paired with an electric motor good for another 113 hp. Working in unison, the hybrid powertrain produces as much as 216 horses, and will drive up to 31 miles on electric power alone. Combined with the 50-liter (13.2-gallon) gas tank, the Passat GTE will travel over 680 miles before needing to stop. Along with the GTE, the German automaker is also launching the new Alltrack version of the Passat. Based on the Variant wagon, the new Passat Alltrack packs all-wheel drive and more rugged styling inside and out for a treatment similar to what Audi does for its Allroad models, Volvo its Cross Country line, and Subaru its Outback range. In Passat form, the Alltrack will set German buyers back ˆ38,550. Launch of the new Passat GTE and Passat Alltrack Two new models added to the Passat range Volkswagen is extending its Passat range, adding the GTE and Alltrack. These models are available immediately at German Volkswagen dealers. For a year now, the three distinctive letters GTE have stood for plug-in hybrid models from Volkswagen. Following the Golf, the second GTE standard model is now going on sale, the new Passat. The Passat GTE is powered by a 1.4-litre TSI engine delivering 115 kW / 156 PS and an electric motor producing 85 kW / 115 PS. The two are perfectly coordinated and pool their resources to generate system output of 160 kW / 219 PS. The combination of turbocharged direct-injection engine (TSI) and electric motor brings together efficiency and sustainability. The lithium-ion battery that provides the e-motor with electricity is charged as the car drives along, including via regenerative braking.

VW joins Daimler's protest of new A/C refrigerant as EU deadline for compliance passes

The case of Dupont and Honeywell's refrigerant R-1234yf is doing the exact opposite of keeping things cool. The two chemical companies have spent years and hundreds of millions of dollars developing R-1234yf to replace R-134a, the new refrigerant shown to be 99.7-percent kinder to the environment than the one it is meant to succeed. Part of that development has been years of testing by governments, outside safety agencies and automakers to approve the chemical for use in cars. It passed the protocols necessary for the European Union to declare that new and significantly revised cars from 2013 onward needed to use R-1234yf, and mandated that every car as of 2017 must use it.
Enter Daimler AG. The automaker created a head-on collision test with a B-Class at their Sindelfingen test track that would lead to the pressurized refrigerant being sprayed on the engine. The result in 20 out of 20 test was that the refrigerant burst into flames as soon as it hit the hot engine, while Daimler says that R-134a does not catch fire in the same test. Another unexpected result of the R-1234yf test was the release of hydrogen flouride, a chemical far more deadly to humans than hydrogen cyanide, emitted in such amounts that it that turned the windshield white as it began to eat into the glass.
Said a Daimler engineer in a Reuters piece, "It was scarcely believable. The most complicated lab tests conducted using the most sensitive measuring instruments around found nothing and all we do is drive a car around a couple of times, open a tiny hole in the refrigerant line and the next thing you know the car is on fire." So Daimler said it wouldn't use the refrigerant, and it recalled the cars it had already shipped with R-1234yf.