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Audi Q3 production begins in Spain

2012 Audi Q3 - Click above for high-res image gallery
It wasn't that long ago that Audi had no SUVs in its lineup - aside from the A6 Allroad Quattro - despite being known for its all-wheel-drive vehicles. But that's all changed, just as it has for BMW and Porsche. The Q7 was followed by the Q5, and now the Q3 has started production as well.
The first Q3 rolled off the assembly line today at the plant in Martorell, Spain. The facility belongs principally to Audi's sister-company Seat, but has gone through a considerable expansion - funded by both Audi and Seat - to prepare for the Q3's production.

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

2016 Audi A4 is larger, lighter [w/video]

The 2016 Audi A4 arrives with a bang, but no surprises. We say that because the formula for creating the new A4 is one we know all too well. Make it larger, add a bunch of content, reduce weight, and improve both power and efficiency. It's a recipe for success, and this fifth-generation A4 looks to be a solid contender against its chief rivals, the BMW 3 Series and Mercedes-Benz C-Class. The shape hasn't changed; it's immediately recognizable as an A4. Instead, this new model updates that familiar design with sharper lines, similar to what we've seen on the new Q7, or even the R8. The big story here is that the 2016 A4 is up to 264 pounds lighter than its predecessor, depending on trim and engine. Additionally, the A4 is the most aerodynamic car in its class, boasting a drag coefficient of just 0.23. A fresh, modern cabin lies within that lighter shell – one that looks decidedly more upscale than the last A4. Many elements are reminiscent of the Audi Prologue concept that we first saw (and drove) in Los Angeles last year – specifically, the steering wheel, and the new MMI controls. In fact, Audi has positioned its infotainment controls closer to the center console – in front of the gear selector. This reminds us of the current A8, where Audi specifically designed its shifter to act as a sort of wrist rest. You can rest your arm on the gear lever and still access all of the MMI functionality. Speaking of which, that's the latest generation of Audi's MMI interface, packing navigation, touch capability, LTE connectivity, and WiFi in the 8.3-inch color display. Audi isn't saying which engines will come to the United States right now, but when the new A4 launches, it'll be offered with three gasoline and four diesel engines in Europe. Our best guess is that the US-spec car will come with the latest 2.0-liter TSFI turbocharged inline-four with 272 horsepower, as well as Audi's tried-and-true 2.0-liter TDI diesel four. Front- and all-wheel drive will be available, and for the first time, two-wheel-drive models will get a proper dual-clutch transmission – no more CVT. There's a whole lot more to lean about the A4 in the press release, posted after the reveal video. You can also see the 2016 A4 in sedan and Avant forms in the galleries above and below – it's unclear if the wagon will make its way to the US. The A4 Avant has been sold here before, but currently, Audi only offers that more functional bodystyle in Allroad spec.