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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

More than half of Mazdas sold in 2018 are CX-5s, and other interesting sales facts

Last year was a seriously good year for carmakers. Overall, more vehicles were sold than in 2017, and the total number wasn't far off of the all-time record in 2016. Digging deeper into the numbers, you'll find some pretty usual stuff including the Ford F-Series still being the bestselling pickup truck in America, and a continued trend toward crossovers. But there are also some oddball factoids tucked in these sales reports, some that defy the trends, and some that are extremes of the public's buying preferences. We've compiled several interesting tidbits from last year's sales right here for your enjoyment. More than half of Mazda's sales were of CX-5s Yes, over half of all Mazda sales were of this one model. The company sold 300,325 cars in America last year, and 150,622 of them were CX-5 crossovers, or 50.1 percent. Just for emphasis, that means the other 49.8 percent of Mazda's sales were split among five other models, the Miata, 3, 6, CX-3 and CX-9. Breaking that down further, the second-best seller was the Mazda3 at 64,638, which isn't even half of the CX-5's sales. People are crazy for Mazda's middle crossover. Volkswagen actually sold more cars than crossovers It's clear that the crossover is the future king of car sales. For most mainstream brands, it already is. Chevy, Ford, Honda, Toyota, Subaru, Mazda and Nissan all sold more crossovers and SUVs than they did conventional sedans and hatchbacks. There are holdouts, though, and one of them is Volkswagen. At the end of 2018, the company sold 189,343 cars and 164,721 crossovers in the U.S. So that's one win for the classic car set, and it's justification for VW to maintain its car line for the foreseeable future. It's a bit of a hollow victory, though. Look closer and you'll see that car sales were down 28 percent from 2017, when VW sold 262,029 cars. Crossovers, on the other hand, jumped 112 percent from 2017 when 77,647 crossovers moved through U.S. dealers. So expect the tables to turn very soon. Mustang is still the muscle-car sales king, but Challenger is the only one to improve Once again, the Ford Mustang topped the muscle-car sales charts, beating out the Dodge Challenger and Chevy Camaro. Ford moved 75,842 of the ponies in 2018, while Dodge sold 66,716 Challengers for second place, and Chevy sold 50,963 Camaros to bring up the rear.

Next VW GTI to get 10-speed dual-clutch gearbox

Following on Volkswagen's official announcement that it was working on a ten-speed, dual-clutch transmission, Auto Express has it on "good authority" that the new transmission will end up in the next GTI, GTD and Golf R. The brand's current seven-speed will be retained for lesser eight-generation Golfs. While the new gearbox won't be limited to just the higher-end Golf range, the new hatchback, expected in 2017, will be the first to get it, Auto Express reports. The new DSG is the same size as the Volkswagen Group's seven-speed dual-clutch, and will easily fit into VAG's MQB platform, so we should expect it to filter into the rest of the Group's vehicles, much like the seven-speed 'box has. The ten-speed is likely to see applications beyond even the small cars of the MQB platform. The gearbox can handle 405 pound-feet of torque, according to AE, making its application in larger offerings such as the gas-powered MLB cars and crossovers a likelihood. Beyond the new gearbox, Volkswagen is also toying with mild-hybrid tech for the standard Golf and better batteries for the e-Golf. As we said, expect the new Golf to arrive in European markets in 2017, with the current Euro-market Golf getting updated next year. As for the US, we wouldn't be surprised if VW followed the trail blazed by the Mark 7, with a North American arrival for the eight-gem Golf slated for a year or so after sales in Europe begin.