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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

First official Audi R8 photo leaks

The next-gen Audi R8 makes its grand debut in a just a few days at the 2015 Geneva Motor Show. However, leaks aren't uncommon for such a highly anticipated model, and it appears that the first official shot of the future supercar is now online. Autoblog en Espanol claims this is the first leaked factory photo showing the new Audi R8 completely undisguised. The single image depicts the supercar from the front, and it looks a lot like both Audi's own official teaser and the previous blurry image from Instagram. Based on this picture, the German designers thickened the outline around the grille at the front and added vertical slats at each corner. They also removed the gentle curve in the headlights in favor of a completely angular look. While the side blades were one of the major styling features of the original, their appearance has been toned down by removing the vertical, contrasting strip running up the body. Though the exterior design seems to evolve the R8 slightly, there are some big changes for the powertrain. Audi is ditching the V8 for the latest model and opting for two tunes of the 5.2-liter V10. The standard version gets 540 horsepower, and the Plus pushes output up to 610 hp. The top trim can reportedly hit 60 miles per hour in 3.2 seconds and reach a top speed of 205 mph. Although, there are already the rumors of other variants, including a turbo V6, coming later. Related Video:

Audi builds 5-millionth vehicle with Quattro

Quattro, the trademark name Audi has put on its all-wheel-drive system engineered for passenger vehicles, recently celebrated its five-millionth installation. The driveline has been offered in more than 140 different vehicles since its introduction more than three decades ago.
The all-wheel-drive technology made its world debut at the 1980 International Geneva Motor Show, beneath the floorpan of the Quattro Coupé, a low-volume two-door. It didn't take consumers long to embrace Audi's innovative approach. While most four-wheel-drive systems at that time utilized heavy transfer cases or second cardan shafts, Quattro was virtually tension-free, light, compact and efficient. Most importantly, enthusiasts found it was especially suitable for sports cars.
Today, the automaker offers Quattro on its full line of passenger vehicles and it is unquestionably successful (the technology enjoyed a 43 percent take rate in 2012). On models with transverse-mounted engines (A3 and TT), Audi uses an electronically controlled multi-plate clutch with hydraulic actuator. Under normal conditions, the clutch sends power almost exclusively to the front wheels (if wheel slippage occurs, up to 100 percent of the torque may be sent to the rear). Vehicles with transverse-mounted engines (A4, A5, Q5, etc...) use a self-locking center differential sending 40 percent of the engine torque to the front axle and 60 percent to the rear under normal conditions (it is able to send the majority of the power to the axle with better traction when needed). The highest-performing Quattro systems use torque vectoring to further improve cornering grip and speeds.