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2015 Audi A3 E-Tron [w/video]

Over the years, we've had a chance to test a lot of Audi E-Tron vehicles, from very early all-electric prototypes (back then we only got to sit in the passenger seat) to the A6 L E-Tron PHEV and the A1 E-Tron plug-in hybrid. All of them were concepts and promises, merely whispers of what was possible, even as the Nissan Leaf, Chevrolet Volt and two Tesla models were making waves in the marketplace.
As we learned last year in our Deep Dive of the E-Tron project, all of the concepts, prototypes and rumors have finally come to fruition in this A3 Sportback E-Tron. Previously, we were given a chance to drive a prototype, but it was only very briefly. Last week, we finally got to run a production-representative example through the hilly roads between Vienna, Austria and Munich, Germany. After spending a solid day with Audi's first marketable E-Tron vehicle, we can say that it's a most amazing bit of engineering, in particular for the way that Audi has done so much to hide the fact that this is an electrified vehicle. Not entirely, of course, but the idea was to make the A3 Sportback E-Tron a no-compromise PHEV. And that means it drives and feels, in many ways, like the standard A3 Sportback despite over 700 extra pounds. Oh, and there's a charge port hidden behind the four rings in the grille.

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.

VW adding particulate filters to gas engines

Volkswagen is working hard to overcome the PR disaster that is its diesel emissions scandal, and part of its efforts is focusing, weirdly, on petrol engines. Starting in June 2017, the embattled German automaker will add particulate filters to the gas-powered Volkswagen Tiguan and Audi A5. The change will eventually impact nearly every direct-injected gas engine the VW Group makes. Audi? Particulate filter. Seat? Particulate filter. Even Bentley is going to get the tech, all in a bid to reduce soot emissions by 90 percent. In fact, by 2022 VAG expects 7 million of its vehicles to boast the emissions-cleaning tech, which has long been a fixture on diesel engines. "Following increases in efficiency and lower CO2 output, we are now bringing about a sustained reduction in the emission levels of our modern petrol engines by fitting particulate filters as standard," Volkswagen Group research and design boss Dr. Ulrich Eichhorn said in a statement. "In the future, all models will be equipped with the latest and most efficient SCR catalytic converter technology." VW's initial rollout focuses on the 1.4-liter, turbocharged Tiguan and the 2.0-liter, turbocharged A5. Considering the popularity of the 2.0-liter across the VW range, we'd expect it's only a matter of time before VW expands its particulate filters tech to additional gas-powered vehicles. Related Video: