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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 A3 outselling Mercedes CLA 2 to 1 in its first 3 months on sale

The Audi A3 is on fire in US showrooms. Not literally of course, that would be horrible, and the situation we're referring to is a good thing indeed, as the Four Rings has a serious hit on its hands with the compact luxury sedan. Looking at just its first three months on the market, the entry-level model is outselling the Mercedes-Benz CLA-Class by nearly two to one.
The CLA was one of the hottest new cars of last year. Mercedes even called it the company's best launch in 20 years, but it sees as if that early sales performance has not been sustainable. According to Bloomberg, the CLA has seen its sales drop year-over-year in seven of the last eight months, and the new A3 came at just the right time to fill that void.
In June, Mercedes shifted 1,658 CLAs in the US, compared to 2,452 for the A3. The Merc has sold more units so far this year but only because the Audi sedan has only been on sale for three full months. With the two cars being relatively comparable as compact, front-wheel-drive, German luxury sedans, it appears buyers prefer the Four Rings over the Mercedes star, so far at least.

Adam Carolla is world's the least helpful test drive co-pilot

If you were going to test drive a new car, who would you want to take with you? Your spouse? A friend? Maybe an automotive journalist? Well take it from us: there's one of us riding shotgun just about every time we go to drive anything, and we're not all we're cracked up to be.
How about a celebrity comedian? Well, that largely depends on which comedian we're talking about here. Some - say, Jerry Seinfeld or Jay Leno, for example - might be more helpful than others, being more or less schooled in the finer points of the modern automobile. Adam Carolla might seem like he belongs on that list too, but in this latest video for a friends at Edmunds.com, the one-time host of The Car Show on Speed TV seems bent on being as comedically intrusive as possible. Which may be funny, but helpful? Not so much. See what we mean in the video below, and the next time you go to test drive a new car, you just might find the world's most popular podcast host climbing in with you.