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When Android Automotive goes in the dash, Google wins — and automakers lose data

You've gotta hand it to Google for the way the Silicon Valley tech giant has made indelible inroads into the car on multiple fronts. The most obvious is with its pioneering self-driving car technology that's caused car companies to get their act together on autonomous vehicles — and also collaborate with Google. Google has more directly extended its influence and data-mining capabilities into the car with its Android Auto smartphone-projection platform that most major automakers have adopted along with Apple's CarPlay. And now it's preparing to dig even deeper into dashboards by deploying its open-source operating system, Android Automotive, beginning with Audi and Volvo. Volvo recently announced that its next-generation Sensus infotainment system will run Android Automotive as an OS and include Google's Play Store for cloud-based content, Maps for navigation and Google Assistant for voice recognition, which can even command a car's climate control. By embedding Google in the dash, Volvo says owners will get an improved connected experience. "Bringing Google services into Volvo cars will accelerate innovation in connectivity and boost our development in applications and connected services," Volvo senior vice president of R&D Henrik Green said in a statement. "Soon, Volvo drivers will have direct access to thousands of in-car apps that make daily life easier and the connected in-car experience more enjoyable." Having Android Automotive onboard could benefit drivers — and provide a big win for Google, since it opens a deep and lucrative new data-mining vein for the company. But it's a wave of a white flag for car companies when it comes to delivering their own cloud-based content and services. It also represents a massive data giveaway and, for Audi, a reversal of earlier reservations about letting Google get too much access to car data. Not long after Android Auto and Apple CarPlay were introduced in 2014 and most automakers eagerly embraced the technologies, several German automakers second-guessed their decision when they realized what was at stake: data. At a conference in Berlin in 2015, Audi CEO Rupert Stadler said car owners "want to be in control of their data, and not subject to monitoring." A few months earlier, Stadler stated that "the data that we collect is our data and not Google's.

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

2016 Audi S6 and S7 First Drive

Audi paired the S6 and S7 for the purposes of this test in Southern California, but these are rather disparate cars. A three-box sedan, even a sporty one like this S6, is for a specific kind of customer. A sleek, four-door hatchback like the S7, on the other hand, is for a different kind of person. These two people might not be as different as Dr. Jekyll and Mr. Hyde, but at the very least the S7 is the S6's lothario neighbor – the one who's always got a glass of scotch in one hand and a chambermaid in the other. A day spent in the canyons around Los Angeles proves there's a big difference between these cars. First, though, let's discuss their similarities. The S6 and the S7 get the same design overhaul we detailed in our piece on the 2016 Audi A6, namely the edge work done on the grille, bumpers, headlights, and taillights. Additionally, they get Audi's new MMI system – the brand's next step in infotainment. A day spent in the canyons proves there's a big difference between these cars. Changes exclusive to these S models include flat-bottomed steering wheels with model badges at the base of the center spoke, and aluminum-finish shift paddles. The pedals and footrest get the aluminum look as well. There's also a new shift lever, and a revised design for the Quattro badge. New seat and surface treatments join the options list, such as Beaufort Walnut inlays and Valcona leather seats in Cedar Brown. The S7 has a new Arras Red interior option as part of its design selection palette, but the striking addition there is the carbon fiber inlay it comes with, which is interwoven with a red thread. You lean in really, really close and see that scarlet yarn, and the cockpit immediately feels more special. It's the kind of beautiful subtlety you expect from Audi, and the result is a scrumptious cabin. The twin-turbo, 4.0-liter V8 gets 30 more horses, topping out at 450 horsepower. Torque remains the same at 406-pound-feet, but fuel economy increases ever so slightly to 18 miles per gallon in the city, 27 mpg highway, and 21 mpg combined. The S6 makes a meal of curves, but it does give away a hint of the effort. It seems that a fair number of buyers wanted S vehicles without the whole suite of go-fast bits; they liked having the "S" on their chests, they didn't need all of the superpowers. Thus, Audi took the Quattro sport differential and dynamic steering off the standard menu, and bundled it with the sport exhaust to create the now-optional Sport Package.