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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

Audi S1 rally car races its RC counterpart

Veteran racer Mattias Ekstrom campaigns the meanest looking Audi S1 on the block in the FIA World Rallycross Championship. With a 2.0-liter turbocharged four-cylinder pumping out a claimed 600 horsepower and all-wheel drive, this little hatch can reportedly hit 60 miles per hour in a wickedly quick 1.9 seconds. While those specs are mighty impressive, they don't really matter too much for Ekstrom's latest race in the S1 against a pint-sized doppelganger in the form of an RC replica of the rallycross machine around a warehouse. Despite, the massive gulf in size and power, the two Audis appear fairly evenly matched. The RC version can't quite match the real one in outright speed but can go under obstacles that Ekstrom's S1 is forced to drive around. Check out the clip above to see which S1 makes it to the finish first. Related Gallery EKS Audi S1 Supercar News Source: Audi Deutschland via YouTubeImage Credit: Related images copyright EKS Motorsports Toys/Games Audi Hatchback Racing Vehicles Videos rc car audi s1

2017 Audi A4: Allroad vs. sedan: We explain the differences

We're rotating 2017 Audi A4 models through our long-term fleet. First came the sedan, followed by the Allroad. They briefly overlapped in our garage. The Allroad is a slightly lifted 'estate' version of the sedan, but the differences go beyond that. We go into great depth in the video above. As you'll discover, there are small tweaks to the trim and styling, and larger changes involving the cargo space and pricing. Michael Austin and John Beltz Snyder explain it. Still need more info? Dive into all the A4 details using our comparison tool. Audi Long-Term Garage Crossover Wagon Luxury Videos Sedan