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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.

Autoblog's top 50 car photos of 2016

This one shouldn't need much explanation. We like cars a whole lot, and that includes not just driving them but taking great pictures of them. We've collected our 50 favorite images from this year in the mega-gallery above. It's a mix of old and new, with a healthy dose of vintage and modern race cars mixed in, and not one single shot under the harsh lights of an auto show. So click through and enjoy. Featured Gallery Autoblog's Top 50 Photos of 2016 View 50 Photos Image Credit: Copyright 2016 Autoblog.com Audi BMW Chevrolet Dodge Ferrari Ford Lamborghini Mazda McLaren Mercedes-Benz Porsche Rolls-Royce Volvo Convertible Coupe Motorcycle Luxury Racing Vehicles Performance Supercars Classics

Next Audi A7 redesign will include more traditional rear end

A report in Automobile says that Audi is rethinking the design of the next A7. Audi told Car and Driver that owners "have trouble with the radical tail of the A7," so its model-defining rear end will give way to something more traditional. Automobile is light on specifics of the redesign, but the general direction is "a lower, wider, and more expressive shape." The philosophy behind the dimensions and styling is a "C/D shift," meaning Audi wants to give its C-segment hatchback the bearing, gravitas, and visual delight of a D-segment vehicle. That would help the A7 stand out from its in-house competition, and could make for higher transaction prices. Having heard about different design directions from Audi for years without much in the showroom to back it up, we could define what we'd love to see in two words: more Prologue. This is Audi, so you know the next A7 will be packed with tech. We expect an emphasis on touchscreen interfaces, a digital dash cluster a la the TT that moves with the steering column, a HUD with night vision, and an MMI system a few more steps down the evolutionary trail. Engines will see some upgrades like the addition of a plug-in hybrid, the excellent 2.0-liter, turbocharged four-cylinder getting a 74-horsepower e-boost assist to 326 horsepower, the 3.0-liter V6 slated for the S7 rising to 500 hp, and the 4.0-liter V8 in the RS7 pumping out 575 hp.