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GM, Audi, Jaguar halt Russian sales amidst ruble's collapse

The value of Russia's ruble currency has sunk like a stone tossed in the Volga for much of the year, losing over 40 percent of its worth since June. The change is having bizarre effects on the auto industry there and leaving some automakers scrambling to adjust. According to Bloomberg, Russians are buying up luxury goods including automobiles at the moment to have a physical investment in case the ruble sinks further. However, with the money worth so little, the companies aren't making much from these transactions. Things are so dire that several automakers are temporarily ending deliveries until the situation stabilizes. According to Bloomberg, General Motors stopped sales on December 16 with no set date to start again. Audi did the same thing but with the intention to resume once it has adjusted model pricing. Jaguar Land Rover terminated business until December 19 to see how things changed. Toyota is increasing its pricing, as well, but keeping business open at the same time. Some automakers have subtly been reacting to the slumping Russian auto market all year. The moves have included Volkswagen cutting production by 30,000 units from its factory in Kaluga. Ford also got rid of 950 workers from two plants due to low demand. Some analysts have even speculated that the contracting industry and possibility of lower import duties into the country could cause companies to end their manufacturing in Russia completely.

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 reveals all-new R8 ahead of Geneva debut

This year's Geneva Motor Show is shaping up to be an absolutely orgy of supercars, but though there will be many that will surely outperform it, few have been as hotly anticipated as the arrival of the all-new, second-generation Audi R8. And here it is. Based around an all-new Audi Space Frame chassis, the new R8 is constructed of a higher proportion of aluminum and carbon fiber than its predecessor. The result is a frame that weighs 15 percent less at just 441 pounds – yet is 40 percent more torsionally rigid - tipping the scales at 3,205 lbs in top spec. Into the middle of that frame Audi has installed a revised version of its 5.2-liter V10, eschewing turbochargers but incorporating new technologies. While other powertrain options are expected to follow, Ingolstadt has gone straight for the top of the range at launch: the 'base' V10 model kicks out 540 horsepower and 398 pound-feet of torque to reach 62 miles per hour in 3.5 seconds and a top speed of 201 mph. The upgraded V10 Plus, however, turns those figures up to 610 hp and 413 lb-ft to reach 62 in just 3.2 seconds, 124 in under ten and a 205-mph top speed. All the while, Audi has also equipped the new ten-cylinder engine with both direct and indirect injection, stop/start and cylinder deactivation systems to cut fuel consumption by 10 percent. It also boasts dry-sump lubrication and a variable exhaust system. Power is transmitted to the road through a seven-speed dual-clutch transmission, a mechanical diff and a revised Quattro all-wheel drive system that can send 100 percent of available torque to either the front or rear axle. Aluminum wishbones suspend it all on 19-inch wheels (or optional 20s), with available variable steering and carbon ceramic brakes (optional on the V10 and standard on the V10 Plus). Underbody aerodynamics generate more downforce and a more slippery form, aided by a deployable rear spoiler (or a fixed carbon wing on the Plus model). All those tantalizing greasy bits are cloaked in fresh aluminum sheet-metal, riding on a track that's 1.6 inches wider: the whole shebang stretches 14.5 feet long, 6.4 feet wide and 4.1 feet high, riding on an 8.7-foot wheelbase. Among the myriad new technologies developed for the new R8 are the full LED headlights with optional laser high beams (where they're legal, at least, which currently doesn't include these United States).