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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

Audi readies sales of new fuel-efficient A4, A5 and A6 models

As diesels continue to account for a minority of cars sold by Audi in the US, the German automaker and Volkswagen unit continues to expand its diesel models in Europe for the sake of fuel efficiency. Early this year, Audi will debut its new A4, A5 and A6 variants in Europe as part of what it calls its "ultra" strategy of pairing performance with fuel economy. Audi will have 11 new models for 2014, and the updated A4, A5 and A6 will use Audi's 2.0-liter turbodiesel powertrain. Versions of that engine will range from 136 to 190 horsepower, while torque will range from 236 to 295 pound-feet. More importantly, the models will get anywhere from 51 to 60 miles per gallon, when tested on the more lenient European driving cycle. And while manual transmission will be standard (this is Europe, after all), the A6 will have a seven-speed automatic transmission option. Pricing will start at 32,600 euros ($44,000 US) for the base A4 and work its way up to 45,000 euros (about $61,000) for the top of the line A6. Last year, Audi boosted its diesel sales in the US by 40 percent to just over 10,000 units, though that accounted for just a fraction of the approximately 158,000 cars the company sold domestically in 2013. Audi has a press release on the new models below. The new ultra models from Audi A4, A5 and A6 with impressive efficiency • New ultra models from Audi with 136 hp, 163 hp and 190 hp • Greater efficiency with unchanged driving dynamics • Emissions of just 104 to 119 grams of CO2 per kilometer (167.37 to 191.51 g/mile) Audi A6 2.0 TDI ultra, Audi A5 2.0 TDI ultra, Audi A3 1.6 TDI ultra Audi is expanding its ultra strategy with 11 new models: Especially efficient engine versions in the A4, A5 and A6 model lines will be launched in early 2014. A new and powerful two-liter TDI will provide the drive at 100 kW (136 hp), 120 kW (163 hp) or 140 kW (190 hp); the engine emits just 104 to 119 grams of CO2 per kilometer (167.37 to 191.51 g/mile) depending on the model. The "ultra" designation stands for sustainable mobility that is fully available for everyday use. With a combined fuel consumption rate of 3.9 to 4.6 liters per 100 kilometers (60.31 to 51.13 US mpg) and CO2 emissions of 104 to 119 grams per kilometer (167.37 to 191.51 g/mile), the new ultra models from Audi are among the most efficient cars of their segment – without any limitation on the driving dynamics or customary comfort. Audi Board Member for Development, Prof. Dr.

Volkswagen Group's Vision 2030 strategy could bring revolution to the brands

One would expect a corporate plan called "Vision 2030," looking 11 years ahead through wildly tumultuous times, to involve great change and numerous forks in numerous roads. According to Automobile's breakdown of Volkswagen's path forward, though, the plans contain some lurid potential surprises. The ultimate aim is return on investment, and that means ruthless reorganization of a conglomerate with eight primary car brands, two car sub-brands, and Ducati motorcycles. The first two Vision 2030 cornerstones Automobile mentions are near boilerplate: Production network restructuring, and "streamlining of key technologies." The latter two are the ones that could upend what we know as the Volkswagen Group: focusing on the Group's core brands — meaning Audi, Porsche, and VW — and transitioning to EVs, autonomy, and other mobility solutions. Based on the report, a quote from Audi's CTO referring to the Audi brand could cover how the Group plans to handle all of its brands: "We need to find a sustainable solution for the indefinite transition period until EVs eventually take over." The boutique divisions adjacent to carmaking, Ducati and Italdesign, look likely to be spun off. For the halo car brands — Bentley, Bugatti, and Lamborghini — apparently shareholders want double-digit returns on investment, and the trio doesn't have long to hit the target. One eyebrow raiser is when the report states, "Bugatti is tipped to be gifted to [ex-VW Group Chairman] Ferdinand Piech." Piech fathered the Veyron during his tenure at VW, and it was thought he commissioned the La Voiture Noire, but he's lately stepped so far back from VW that he sold all his shares in the Group. Automobile quoted a senior strategist as saying of money-losing Bentley, "Why invest on a backward-looking enterprise when you can support a trendsetter? A proud history and excellent craftmanship alone don't cut it anymore." We guess no one at Ferrari, McLaren, or even Porsche got that memo. Bentley is reportedly close to being put in time out, and if brand CEO Adrian Hallmark can't right the Crewe ship, the hush-hush Plan B is to prop the Flying B up enough to lure a buyer. As for Lamborghini, caught between two masters at Audi and Porsche, even record-breaking numbers at the Italian supercar maker barely staved off sacrilege. It's said that VW brand CEO Herbert Diess considered putting a 5.0-liter Porsche V8 into the Aventador successor.