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For the last few years, Audi has been publicly toying with building a successor to its Ur-Quattro, a model still glowing in a gritty patina of motorsports glory decades after it left the scene. If anything, the rally car's halo has burned brighter as Audi has matured into a world luxury superpower. Since 2010, the German automaker has shown two different concept cars that attempted to re-bottle the legend's lightning, and it's still trying to figure out whether to market a production model. Despite that conundrum (and not to take anything away from the seminal Ur-Quattro), it's easy to argue that there are two other cars much more important to Audi's rise from its '80s ashes: the original TT and the B5-generation A4 and its high-performance variants.
The TT thrust Audi into the vanguard of automotive styling while firmly establishing the Volkswagen Group as masters of platform development (the same basic architecture and powertrain guts were employed in a dizzying array of models, from the Golf, Jetta and New Beetle to a number of Škoda products). This unprecedented, flexible building-block approach to new model development has since become the standard of the industry.
In the case of its B5 cars, the A4, S4 and RS4 put Audi back on the radar of rival German automakers, and more importantly, they grew the Four Rings' sales by leaps and bounds while reminding the world that all-wheel drive needn't only benefit hardcore performance cars and utility vehicles. Fast-forward to today, and the A4 has established itself as the bedrock of Audi's lineup, but it's also grown over its four generations to become substantially larger, heavier and costlier than the model that debuted back in 1996 America. That's created a vacuum at the bottom of the range that the company has inadequately addressed - until now.

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.

Audi A3 E-Tron goes carbon neutral with German green electricity deal

Audi is proving that the fresh water flowing through the European Alps isn't just for bottling and drinking anymore. The German automaker struck a deal with Hamburg-based LichtBlick to offer buyers of the Audi A3 Sportback E-Tron a chance to get their electrical juice from all renewable-energy sources. That means all the power going into charging stations can come from hydroelectric power from Germany, Austria and Switzerland. The nuts and bolts part of it is that users pay the equivalent of about $12.30 a month plus 37 cents per kilowatt hour for the service. And LichtBlick is indeed legit, as it has been certified by TUV Nord for having at least one third of its power come from hydroelectric plants that are were built less than six years ago. Audi is looking to boost sales from a model it unveiled at last year's Geneva Motor Show. The car pairs a turbocharged 1.4-liter four-cylinder engine with an electric motor that combines for 250 horsepower. Most importantly, the A3 E-Tron gets a combined fuel economy rating of 157 miles per gallon. And while that figure comes from the more generous European driving cycle, it's impressive nevertheless. Check out Audi's press release below and read the Autoblog Quick Spin here. Audi and LichtBlick offer green electricity CO2-neutral mobility with Audi energy TUV-certified green electricity from the energy provider LichtBlick As an accompaniment to the market launch of the A3 e tron*, Audi is offering customers in Germany green electricity – Audi energy. The cooperating partner is the Hamburg energy provider LichtBlick SE. With Audi energy, the A3 e tron is totally emission-free when operated electrically. The power all comes from renewable energy sources and is generated exclusively at hydro-electric power stations in Germany, Austria and Switzerland. The Audi A3 e-tron can be recharged when parked at your home with Audi energy. At the same time, the entire household is supplied with eco-friendly electric power. Audi energy is currently available for a basic monthly fee of EUR 8.95 and 26.76 cents per kilowatt-hour. The origin and quality of the green electricity are certified by TUV Nord. The "OK power" seal of quality also confirms the expansion of power generation from renewable sources: at least one-third of the electricity comes from hydro-electric power plants less than six years old. Providers of this green electricity do not make use of federal subsidies pursuant to the German Renewable Energy Act (EEG).