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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

Editors' Picks March 2022 | Acura RDX, VW GLI and a Rolls-Royce

This month's Editors' Picks offer a little something at every budget. We call out a performance car as cheap as the Volkswagen GLI, but the Rolls-Royce Ghost also manages to make its way on to the list. Of course, very few folks can afford a Ghost, but that doesn't change the fact that it's an engineering master class. In addition to these options, we also dive into the compact luxury SUV market, one that is bursting with choices. In case you missed our previous Editors' Picks posts, here’s a quick refresher on whatÂ’s going on here. We rate all the new cars we drive with a 1-10 score. Cars that are exemplary in their respective segments get EditorsÂ’ Pick status. Those are the ones weÂ’d recommend to our friends, family and anybody whoÂ’s curious and asks the question. The list that youÂ’ll find below consists of every car we rated in March that earned an EditorsÂ’ Pick. 2022 Acura RDX Quick take: The RDX ticks a lot of boxes for a great price. It drives better than expected, offers excellent tech, has plenty of room and even looks the part. Score: 7.0 What it competes with: Mercedes-Benz GLC-Class, BMW X3, Volvo XC60, Audi Q5, Lexus NX, Infiniti QX50, Alfa Romeo Stelvio, Genesis GV70, Porsche Macan, Jaguar F-Pace, Lincoln Corsair Pros: Value, driving dynamics, space Cons: Infotainment is polarizing, midgrade interior From the editors Road Test Editor Zac Palmer — "The RDX is a bit of a sleeper in this segment. It drives far better than many of its competitors, and it doesn't let you down in any particular area. If you were thinking of buying an entry-level option from one of the Germans, make sure you take the RDX into account, because you'll likely end up with more tech and features for an even lower price. News Editor Joel Stocksdale — "The Acura RDX is an impressive value in the small luxury SUV segment. It starts in the low $40,000 price range, and provides loads of standard convenience and safety features. Everything is packaged in a sharp and surprisingly spacious package, too. It's also nimble and has a punchy engine that makes it fun to drive. You may find some competitors that surpass it in some areas, but the Acura offers about the most for the money of anything in the segment." In-depth analysis: 2022 Acura RDX Review | Value-packed and surprisingly sporty   2022 Volkswagen Jetta GLI Quick take: The GLI offers excellent driving dynamics and great styling for someone who doesn't want a hatchback. It's pricey, but it's worth it.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico