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Skoda launching two new CNG-powered vehicles in Europe in June

Skoda's second- and third-ever production compressed natural gas (CNG) vehicles aren't exactly speed burners, but they are efficient. The Czech automaker, which is owned by Volkswagen, will introduce its Octavia G-TEC and Octavia Combi G-TEC models to most of Europe next month. Skoda's first CNG model was the Citigo, which debuted in 2012. The Octavia models will have a turbocharged 1.4-liter engine that will deliver about 109 horsepower. Quickness isn't these cars' virtue, as their 0-60 mile per hour acceleration time will be almost 11 seconds. But they can go as far as 826 miles on their tanks of gas and CNG, enough to go from Prague to Rome in one shot, in case anyone was curious. Or nuts. The move by Skoda makes sense, as the CNG market in Europe has long been far further along than it is on this side of the pond, where CNG has primarily been used to move delivery trucks, but it's now available in pickups form Chrysler, Ford and General Motors as well as passenger cars from Chevy and Honda. The Skoda Citigo has moved almost 2,000 units since its debut, with 1,300 vehicles sold last year alone. That car can go as far as 385 miles on CNG and gasoline combined, which is impressive but not quite as bladder busting as the Octavia models. Check out Skoda's press release below. SKODA continues its CNG offensive with the new SKODA Octavia G-TEC Launch of the new SKODA Octavia G-TEC and new Octavia Combi G-TEC in June First SKODA Octavia with natural gas drive as standard; 97 g CO2/km High-performance technology: bivalent turbo engine 1.4 TSI/81 kW The ultimate in fuel economy: up to 1,330 km with natural gas and petrol SKODA Citigo G-TEC has enjoyed market success since 2012; only 79 g CO2/km Natural gas is the environmentally-friendly, cost-effective alternative Mlada Boleslav, 19 May 2014 – Expanding its environmentally-friendly model range, SKODA is renewing its emphasis on compressed natural gas vehicles. The new SKODA Octavia G-TEC and the new SKODA Octavia Combi G-TEC will be given their market premiere in June. This will increase the brand's CNG range to three models. Since the end of 2012, the little natural gas-drive Citigo has been successfully touring the European markets. "With the new Octavia G-TEC and the Octavia Combi G-TEC, our model range is becoming even more environmentally-friendly," says Dr Frank Welsch, SKODA Board Member for Technical Development.

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

European car sales up 8% in February

Three weeks ago an analyst increased projections for European car sales this year, expecting them to climb three percent compared to last year instead of 2.7 percent. That number is a postive sign after years of hard times but it turns out February was especially good, overall European sales climbing eight percent on a wave of southern European recovery and discounts - and this comes after five months of gains including January's 7.2-percent jump over the year before.
The only country of Europe's five largest markets to post a decline was France, just as it did in January, Germany, the UK and Italy posting solid double-digit numbers, Spain rocking the charts with an 18-percent increase because of a government program to encourage trade-ins.
The only brand to miss the wave was Volkswagen, dropping 0.8 percent as it watched the double-digit growth at sister brands Audi, Seat and Skoda lift the Volkswagen Group sales up by seven-percent. Peugeot overcame flat sales at Citroën to improve the group by 3.5 percent, BMW and the Mercedes-Benz/Smart combo rose by four percent, the Fiat group jumped 5.8 percent, Ford was up 11 percent, the Renault Group 11.5 percent, General Motors 12 percent and the Toyota clan by 14 percent.