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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 recalls 850,000 A4 models globally for airbags that won't deploy

Audi has announced that it will be recalling 850,000 A4 sedans, wagons and Allroad models across the globe due to a software problem that could prevent the front airbags from deploying. All 850,000 vehicles were built after 2012.
Audi has already adjusted production of new A4s to eliminate the software glitch. Meanwhile, the German manufacturer was quick to emphasize that Takata did not manufacture the affected airbags.
According to Reuters, 250,000 of the affected A4s were built for the Chinese market, while another 150,000 were sold in Germany. Audi didn't provide a breakdown beyond those two countries, although it'd be a surprise if there weren't at least some affected airbags in the US market.

AMS Alpha 10 Audi R8 First Drive [w/video]

Horsepower is a relative number. Compared to the 1,500 hp in the last AMS car we drove, the face-melting Alpha 12 GT-R, 900 seems pretty tame. But by any rational standard that's a crazy amount of power, the kind that's hard to grasp in practical terms. When AMS Performance called us and offered a test in the 921-hp Alpha 10 Audi R8, saying yes was easy. Figuring out how to demonstrate that much thrust was the tricky part. Our solution was to head to the drag strip. What better way to show off the wicked alterations wrought by AMS president Martin Musial and his team than a video showing the car do the Star Trek warp speed effect through the quarter mile? AMS has a history of building quick drag strip cars, like the aforementioned GT-R and a series of Mitsubishi Lancer Evolutions. Vice president Arne Toman even owns the world's fastest Hearse. We should have taken the broken scoreboard at Milan Dragway as an omen. Wiped out by a lightning strike, both displays have since been replaced. Before our test both Musial and Toman explained that the Alpha 10 R8 wasn't built with drag racing in mind. But, being good sports, both met us at the track in southeast Michigan, unloaded the R8 from its trailer, and let us run through the timing lights over and over. The best time that day was 11.0 seconds at 136 mph, uncorrected. One of the many amazing things about the Alpha 10 Audi R8 is that it's essentially a bolt-on system. That's fast, but not what you'd expect for 786 horsepower at the wheels. And, honestly, we're not disappointed. First, a 4,200-rpm rev limiter was set too low to launch on the sticky drag strip. Put another way, that drag strip time is almost a street start. For what it's worth, Musial and Toman didn't seem concerned about the numbers. Like we said, they present the Alpha 10 as an all-around performance car, and we believe them. Now, if you go to AMS with the drag strip in mind, Musial and his staff can program whatever launch rpm you desire. (You're on your own for clutch replacements.) A reflash of the engine controller is part of the Alpha 10 package. Drop off a stock R8 V10 at AMS (or any of its 70-plus dealers), and they'll pull out the suitcase-shaped muffler that sits behind the engine. A pair of turbochargers, small mufflers, and two heat exchangers attach to the stock exhaust system mounts, while a giant water-to-air intercooler sits on top of the engine.