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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 A4 preps to go Allroad

Audi recently unveiled the lighter, larger, and sleeker 2017 A4, but the sedan is just the beginning. We know that A4 Avant and Allroad wagon versions are on the way too. Only the Allroad, however, is destined for these shores. These spy shots provide an early idea of what to expect for American buyers who prefer a longer roof and more room to haul in the back. A few key details distinguish this Allroad from the standard Avant, including the elevated ride height. Also, look carefully at the front three-quarters shot, and you can also pick out the more pronounced fender flares. Audi's designers made slight adjustments to the air dam, especially below the headlights, and there are some smaller tweaks to the rear bumper, as well. The Allroad's debut is expected to be staggered from the sedan and Avant versions, and the company obviously isn't talking about power yet. The only powertrains divulged for the 2017 A4 in the US are either a revised 2.0-liter TFSI or a 2.0-liter TDI diesel. Regardless of engine, all-wheel drive would certainly be standard to fit the more rugged version's styling. Related Video:

Audi boosts A3 Sportback e-tron plug-in hybrid production to 50 a day

Should we try to translate "Damn the torpedoes, full speed ahead" into German? Audi might force us to do that. That's because the German automaker has stepped up production of its new plug-in vehicle – the A3 Sportback e-tron plug-in hybrid – which is never a bad thing. Audi was circulating prototypes of the PHEV as early as 2012 and launched production this summer at a clip of 30 vehicles a day. Now, the company is saying that it's upped that daily production rate to 50. That's not exactly Ford F-150 manufacturing territory, but it's a pretty good sign that more Europeans are clamoring for the plug-in than Audi expected. The A3 E-Tron is priced at about $51,000 in Germany and pairs a 1.4-liter gas-powered engine with an electric motor to produce 204 horsepower and get the car from 0 to 60 miles per hour in less than seven and a half seconds. More impressively, the A3 Sportback e-tron plug-in hybrid can go 30 miles on electricity alone plus another 550 miles on gas power, and gets a Euro-based fuel-economy rating of a monstrous 156 miles per gallon. Check out Audi's press release below and take a look at our drive impressions here. On the line and on time: Production of the Audi A3 Sportback e-tron • First plug-in hybrid model drives off the assembly line in Ingolstadt • Assembly processes integrated into the A3 line • Maximum safety for employees, top quality for customers Production of the Audi A3 Sportback e-tron: Assembly – On the engine and component assembly line, the electric motor and transmission are fitted to the engine. Approximately 50 cars every day, with the same timing and on the same assembly line as the other models: Audi is now ramping up production of the Audi A3 Sportback e-tron*. The premium manufacturer is producing its first plug-in hybrid model at the brand's main plant in Ingolstadt. "We started series production of the Audi A3 Sportback e-tron in the summer," said Dr. Hubert Waltl, Board of Management Member for Production at AUDI AG. "Most of the assembly work is integrated into the A3 line; no separate manufacturing is necessary. That demonstrates the flexibility and efficiency of our production planners and employees." With the Audi A3 Sportback e-tron, Audi is launching the mobility of the future. The compact five-door combines a 1.4 TFSI combustion engine with a 75 kW electric motor, resulting in a total system output of 150 kW (204 horsepower).