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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 readying 650-hp Sport Quattro Concept for Frankfurt

Remember Audi's perfectly lovely Quattro Concept from the 2010 Paris Motor Show? Of course you do. The latter-day Ur-Quattro is laser-etched in our brains as well - and not just because Audi was kind enough to offer our man Michael Harley a mountain drive of its seven-figure showcar. At the time, Audi hinted that the coupe might have a showroom future, but the gossip pipeline has long since gone dry, leading us to believe that the car's production hopes had soured.
That 2010 concept was powered by a 2.5-liter five-cylinder engine yielding 380 horsepower and 354 pound-feet of torque, a relatively modest but appropriate engine configuration in light of the Ur-Quattro's five-banger. Given the Quattro Concept's size and specs, it wasn't clear exactly where such a vehicle might fit into the company's lineup, though, as it already already offers the successful A5/S5/RS5 lineup.
Apparently, Audi might have a solution to that conundrum. A new report from Germany's AutoZeitung suggest that the automaker is posed to reveal a production version of the concept at the Frankfurt Motor Show in September - on the Ur-Quattro's 30th anniversary, no less. Word is that Audi is taking the Quattro Concept upmarket in a big way, with a tuned version of the twin-turbo 4.0-liter V8 from the RS7 churning up in the neighborhood of 650 horsepower. Naturally, all-wheel drive will get all that power to the ground, and new bodywork is expected as well. In addition to the powertrain switch-up, there is talk of extensive use of lightweight materials, including magnesium, carbon fiber and aluminum, with a target weight of under 2,900 pounds. Magnetic ride control suspension and carbon-ceramic brakes are also expected to find their way onto the model. Unsurprisingly, all of that extra equipment is likely to impact the car's bottom line - reports suggest its sticker price could crowd that of the mighty R8 at around $150,000.

More next-gen Audi TT details revealed

We still only have rumors about the third-generation Audi TT said to be scheduled for launch in late 2014, but based on a report in Car and Driver, we know a tiny bit more about it. The base engine will be the 2.0-liter turbo four-cylinder with direct injection, but horsepower is said to be 220 horsepower - that would make for a nine-hp jump over the current output. The TTS would get an even larger power boost, going from 265 currently to 300 hp. The TT RS would stick with it's 2.5-liter five cylinder, with output increased from 360 to 380 hp. If Audi includes a nice dose of the go-light engineering involved in the TT Ultra Quattro, these horsepower numbers might be even more impressive.
As with the TT concept and first-generation production car, though, it sounds like the brand is concentrating on aesthetics. It's been widely reported that Audi wants to reclaim the juju conjured by the original TT, and while we still don't know what that means outside, CD reports that the interior gets simplified, "futuristic-feeling" styling thanks to instruments served up on a TFT screen. Remember, the first Audi TT had a cockpit that Car magazine dubbed simply, "The Cabin."
About a year after the coupe comes, the Audi TT Roadster will show up and should be joined by the next A5. The news for the next version of the subtly beautiful coupe is the arrival of a plug-in hybrid with torque vectoring via an electric motor for the rear axle. Beyond that is wilder speculation of an A9, which might be called Q9, and which was the four-door-coupe flavor of the month two years ago when it was possibly going to share a platform with the Lamborghini Estoque. According to the CD story, the thinking now is around "a combination of fastback and crossover proportions," a two-fer we've yet to see any carmaker pull off without making us go, "Oh. I see."