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Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

Recharge Wrap-up: BMW i8's Engine of the Year, biodiesel producer guilty

BMW has won International Engine of the Year for the hybrid system in the i8. The i8 PHEV uses a 1.5-liter, three-cylinder gasoline engine with a hybrid drive unit including a 96-kilowatt electric motor. BMW beat Ford's 1.0-liter EcoBoost engine by a small margin to win the award for best overall engine. It also took the award for the 1.4-liter to 1.8-liter category, as well as best new engine. Tesla beat BMW to win the green engine category for the electric powertrain of the Tesla Model S. Read more at Green Car Congress, or see all of the results from the International Engine of the Year Awards. The head of Audi powertain development is quitting as the automaker steps up electrification. Stefan Knirsch has worked at Audi since late 2013, and previously worked at Porsche as the head of quality management and engine development. Germany's Auto Motor und Sport magazine had reported that Knirsch was leaving Audi, which Audi confirmed without giving a departure date or saying if he would be working elsewhere. Audi has been feeling pressure from its competitor Mercedes-Benz, and has been working on improving its EV offerings and autonomous vehicle technology. Read more from Reuters. The owner of a biodiesel company has pleaded guilty to fraud. Philip Joseph Rivkin, aka Felipe Poitan Arriaga, took part in a scheme to defraud the EPA, falsely claiming to be producing millions of gallons of biodiesel. This allowed his company, Green Diesel, to receive renewable fuel credits and sell them to oil companies and brokers. "These crimes are a serious threat to an important program that helps combat climate change," says Cynthia Giles of the EPA. "Companies and individual managers should get the message that there are serious consequences for breaking the rules and undermining the integrity of this program." Rivkin faces over 10 years in prison and $51 million in restitution. Read more in the press release below. Biodiesel Fuel Company Owner Pleads Guilty to Fraud and Clean Air Act Crimes Connected to Renewable Fuels Scheme Philip J. Rivkin faces more than 10 years imprisonment and $51 million in restitution WASHINGTON – Philip Joseph Rivkin, a.k.a. Felipe Poitan Arriaga, 50, today pleaded guilty to a Clean Air Act false statement and mail fraud as part of his role in a scheme to defraud EPA by falsely representing that he was producing millions of gallons of biodiesel fuel.

2015 Audi A3 Cabriolet

When my 758-mile journey on the A3 TDI Challenge came to an end in Boulevard, CA, Audi had a very nice consolation prize waiting for me: the 2015 A3 Cabriolet you see here. And with miles left to drive before reaching my hotel in Coronado (just outside of San Diego), what better way to celebrate my personal victory of achieving nearly 60 miles per gallon in the TDI than to run the rest of the route in couple of turbocharged A3 droptops? After all, the efficiency part of my drive was done, so it was time to have some fun. The A3 Cabriolet comes to market just as the sun sets on another four-seat convertible from the Volkswagen Group stable: the Eos. That car, often criticized as being too expensive, is technically replaced by the Beetle Convertible as far as VW-badged products go. But for those who still prefer something a bit more upmarket, the A3 Cabriolet will fill the void nicely, and with more style and grace than the Eos ever had. Driving Notes The A3 Cabriolet arrives with a choice of engines. On the base end lives a 1.8-liter turbo-four with 170 horsepower, 200 pound-feet of torque and front-wheel drive, or you can pony up for the 2.0T with 220 hp, 258 lb-ft and standard Quattro all-wheel drive. Regardless of engine, the only transmission available in the A3 Cab is Audi's six-speed S-tronic dual-clutch unit. This is a fine cog-swapper, with quick shifts regardless of chosen powertrain, and steering wheel-mounted paddles that offer plenty of fun from behind the wheel. That said, I found it best to just leave the transmission alone, no matter the engine. The paddles are entertaining, sure, but slick the gear selector into Sport and the A3 will instinctively hold gears through turns and always have you right in the heart of the powerband. The 1.8T's 170 hp and 200 lb-ft are more than adequate for duty in the 3,373-pound A3 Cabriolet. I was never bothered by a lack of power, especially with the engine on boil with the transmission in its sport setting. Hitting 60 miles per hour takes 7.4 seconds, en route to an electronically limited top end of 130 miles per hour. If speed is your thing, though, the 2.0T certainly delivers quite a punch. That same 0-60 sprint takes just 5.9 seconds with the more potent powerplant, and you can really feel the stronger rush of power right off the line, even with the quicker A3's 210-pound weight penalty.