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Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.

VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

Audi says gas-electric Q7 E-Tron PHEV coming to US, China

That 166 MPGe diesel-electric Audi Q7 E-Tron Quattro we wrote about last week from the Geneva Motor Show? The US might eventually get those, too. With one important change. Audi disclosed details about the upcoming Q7 E-Tron Quattro SUV plug-in hybrid at the Geneva show that were truly impressive. The model will be able to go as far as 35 miles on electric power alone and will have a fuel-efficiency rating of 166 miles per gallon equivalent. The 373-horsepower beast will also be able to go from 0 to 60 miles per hour in about six seconds. Like we said, impressive. Now, we're finding out from Automotive News Europe that not only will the model debut in Germany next year, but the US and China will get versions as well. The difference? Whereas the standard European version pairs a 3.0-liter six-cylinder diesel engine with an electric motor, our version will use a 2.0-liter turbocharged gas engine as its non-electric mill, said Automotive New Europe, citing comments from Audi development chief Ulrich Hackenberg in Geneva. No word on when the US will start seeing its version of the Q7 E-Tron, so we'll just have to take a look at Audi's press release below from earlier this month for full details on the diesel Q7 E-Tron. Related Videos: Great class, minimal emissions – the new Audi Q7 e-tron 3.0 TDI quattro First diesel plug-in hybrid with quattro drive in its segment Best value in the segment: up to 56 kilometers (34.8 mi) electric range Maximum efficiency with hybrid management Audi Q7 e-tron 3.0 TDI quattro It accelerates from a standstill to 100 km/h (62.1 mph) in six seconds, and yet consumes not even two liters of diesel per 100 kilometers (117.6 US mpg). The Audi Q7 e-tron quattro is sporty, comfortable and at the same time highly efficient. The world's first TDI plug in hybrid with quattro drive, it is also the first plug-in hybrid with a diesel engine from Audi. The Q7 e-tron quattro is Audi's second model with a powerful plug-in hybrid drive system. The model combines the best of two worlds: Powered by the lithium-ion battery, the large SUV covers up to 56 kilometers (34.8 mi) on electric power alone – quietly, powerfully and with zero local emissions. Together with the diesel engine, the car can cover a total distance of 1,410 kilometers (876.1 mi). Sporty power and minimum consumption The Audi Q7 e-tron quattro is the world's first plug-in hybrid car with a six-cylinder diesel engine and permanent all-wheel drive.