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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

Audi R8 Spyder is latest big New York Auto Show debut

The New York Auto Show hasn't been boring. Highlights so far are the kick ass Mazda MX-5 Miata RF and the new Lincoln Navigator Concept. And now, Audi has added a healthy dose of supercar to the mix with the new R8 Spyder. The headlining stats are familiar, seeing as how they're plucked directly from the new R8 hardtop. The only powertrain option is the 5.2-liter V10 and seven-speed S-Tronic dual-clutch transmission. That engine, as in the hardtop, is good for 540 horsepower and will get this droptop German to 62 miles per hour in just 3.6 seconds (only a tenth of a second off the Coupe's time). The convertible R8 will run all the way up to 197 miles per hour. Audi's release makes no mention of a higher-performance V10 Plus model, which is available on the R8 Coupe. That top-end trim bumps output to 610 ponies and cuts three-tenths of a second off the base hardtop's 3.5-second run to 60. The upside, of course, is unlimited headroom. The new fabric roof can be opened or closed at speeds up to 31 miles per hour, and the operating time is 20 seconds in both directions. The R8 Spyder hasn't exactly been a secret. We've spotted it testing as recently as August, and it was included on a leaked product road map last month with a listed March/April debut. Check back later for a full round of live images from the R8's New York debut. Until then, check out our first images of the new R8 Spyder, available up top. Related Video: New Audi R8 Spyder V10: debut at the New York International Auto Show V10 engine developing 397 kW (540 hp), from 0 to 100 km/h (62.1 mph) in 3.6 seconds New: driving dynamics system with performance mode Audi Space Frame with 50 percent improvement in rigidity 397 kW (540 hp), from 0 to 100 km/h (62.1 mph) in 3.6 seconds, top speed 318 km/h (197.6 mph) – the new Audi R8 Spyder* with V10 naturally aspirated engine merges impressive performance with the allure of open-top driving. Its striking design and high-end technologies demonstrate the concentrated expertise of the premium brand. Audi is unveiling its new open high-performance sports car at the New York International Auto Show 2016. "With its spontaneous throttle response, quick revving-up and inimitable sound, the 5.2 FSI naturally aspirated engine in the new Audi R8 Spyder delivers undiluted emotion," remarked Dr.-Ing. Stefan Knirsch, Member of the Board of Management for Technical Development.

Audi will spend less on future technology as it focuses on future technology

It seems the very thing meant to be saved by Audi curtailing spending could also take a hit as a result. A report from Reuters outlines a few ways Audi will cut costs in the wake of its parent company's diesel scandal. While focusing on EVs, autonomous driving, and new connected technology instead of its current vehicle portfolio, Audi is axing plans for a track to test self-driving cars as well as facilities meant to produce new concepts and batteries. Or, you know, exactly the kinds of things Audi is now focusing its efforts on. Some of this shouldn't come as a surprise. We already know about the death of the R8 E-Tron, a low-volume EV that wasn't going to make the brand much money and didn't pan out as a halo electric car quite like the company probably hoped. Then there's the new E-Tron crossover, which has been in the works for a while and will head a line of consumer-grade EVs from the brand – the kind that will make money as long as they sell in mass-market numbers, something Tesla has shown is possible. That project is surely safe, although perhaps it will now take longer for the EVs to gain autonomous abilities. This change in funding direction could mean that the planned autonomous track, dubbed IN-Campus as it was to be located in Audi's home of Ingolstadt, was going to be more for show than actual research, or that Audi thinks it can get the same outcomes in its existing facilities or new ones located elsewhere. (The company's work council is upset by the plan being put on hold, as it could mean more jobs leaving Germany.) There's also the very strong possibility that this provides a welcome opportunity for the company to cut some fat. Reuters notes that Audi spends more on R&D than rivals BMW and Mercedes-Benz, despite having the whole VW Group to leverage. While the diesel scandal was certainly not welcome, it may be forcing Audi and the other Group brands to take a closer look at balance sheets than they otherwise would have. The result of all of this could be a leaner company, assuming too much attention doesn't stray to low-volume EVs and away from what are still the core products. Related Video: News Source: ReutersImage Credit: Reuters Green Audi Technology Crossover Autonomous Vehicles Electric audi e-tron