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Audi diverting a third of R&D budget to electrification

Companies make promises all the time. We'll do X by Y. The new A will be our biggest seller in B. You know the drill. But it's when an automaker puts its money where its mouth is that we really stand up and take notice. That's precisely what Audi is doing as it attempts to convert 25 percent of its sales to electrified vehicles by 2025. Citing two sources with knowledge of Audi's plans, Reuters reports that around a third of the company's research-and-development budget will go to " electric cars, digital services, and autonomous driving." Of course, shifting that much money over to newer technologies means sacrifices elsewhere – Reuters' sources claim Audi will move money away from combustion engines and reduce country-specific powertrain variants, but the sources wouldn't get more specific. According to Reuters, Audi is 22nd in total sales of hybrids and EVs. That's eight spots behind Mercedes and ten spots behind BMW (not to mention hybrid-happy Lexus). Audi's only electric representatives in the US market are the A3 e-Tron and Q5 Hybrid and things aren't much better in Europe – the company needs to dump buckets of money into expanding its meager lineup to bring up the percentage of EVs it sells. Expect greater detail on Audi's electrification plans very soon – CEO Rupert Stadler will discuss the company's path forward on Wednesday at a closed-door meeting in Munich with over 2,000 managers. It's unlikely all those managers will be able to keep quiet. We'll be listening. Related Video: Featured Gallery Audi E-Tron Quattro Concept View 36 Photos News Source: ReutersImage Credit: Audi Green Audi Volkswagen Green Driving Electric Hybrid PHEV e-tron audi e-tron electrification

Chrysler and Fiat offering $1,000 rebates to VW owners as Marchionne gets tough

The throw-down between Fiat CEO Sergio Marchionne and Volkswagen has heated up in earnest. According to Bloomberg, Fiat and Chrysler are now offering current Volkswagen owners in the US $1,000 rebates to trade in their ride. It's the latest in a series of shots Marchionne has taken at his German rival. As you may recall, the Fiat executive entered into a spat with Volkwagen board chairman Ferdinand Piëch and CEO Martin Winterkorn in October after the duo called for Marchionne's resignation from presidency of the European Automotive Manufacturers Association (AECA). At the time, the Volkswagen executives were quoted as saying Fiat would not survive the European economic downturn.
In response, Marchionne called the German executives "reprehensible," and accused Volkswagen of using a pricing strategy that has created created a "bloodbath" in the EU. Volkswagen has taken to steep discounting to carve out ever-larger slices of market share in Europe, but the company has a much smaller foothold in the US. Marchionne may be trying to hit Volkswagen where the manufacturer is weakest with the new Fiat new incentive program.
Late last week, the Fiat executive was voted to a second term as ACEA president.

VW App-Connect gets celeb-studded campaign

Volkswagen is hoping that some celebrity faces help get the word out about App-Connect in the German brand's latest models with the MIB II infotainment system. The humorous, new commercial titled Party (above) stars Adam Scott, Michael Pena, and Christopher Mintz-Plasse, and the three of them are using voice commands and the touchscreen to show off the tech while planning a party. Another 30-second commercial titled Sorry with the three guys is coming along soon, as well, to advertise it even more. App-Connect is part of VW's adoption of Apple CarPlay, Android Auto, and MirrorLink. By supporting all three standards, pretty much every smartphone user can plug into the vehicle's infotainment system. The tech is already available on the 2016 Tiguan and Golf R but is rolling out to all of the German brand's vehicles this model year, except for the Touareg and Eos. VOLKSWAGEN DEMONSTRATES ADVANCED CONNECTIVITY IN NEW CELEBRITY-DRIVEN MARKETING CAMPAIGN Sep 17, 2015 First brand to offer all three major smartphone integration platforms; available on virtually every model and nearly every trim Highlights App-Connect, a new technology which makes compatible smartphone integration seamless through Apple CarPlay®, Google Android Auto™, and MirrorLink® Multimedia Campaign stars Hollywood celebrities Michael Pena, Adam Scott and Christopher Mintz-Plasse Herndon, Va. – Volkswagen of America, Inc. today announced the release of a new advertising campaign that highlights the brand's all-new infotainment system, MIB II, and its advanced smartphone integration technology, App-Connect. As part of Volkswagen's available Car-Net® suite of connectivity offerings, App-Connect allows for seamless integration of compatible smartphones across Apple CarPlay®, Google Android Auto™ and MirrorLink®; making it the first automaker to do so. The campaign kicks off with two 30-second television commercials, titled "Party" and "Sorry" starring Adam Scott, Michael Pena and Christopher Mintz-Plasse. In each spot, the celebrities navigate App-Connect by utilizing voice commands, the vehicle's touchscreen, and steering wheel controls.