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China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.

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."

Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.