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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

Lincoln Aviator returns, VW ponders pickups, and Subaru Forester endures

NEW YORK – Volkswagen is taking a hard look at a pickup truck, the Lincoln Aviator is back, and you love old Subarus (we'll explain). The New York Auto Show returned last week with flair and a wide range of promising reveals. Let's break down some of the big news, plus a few things you might have missed. News: Ford is fortifying Lincoln with the Aviator SUV Views: Doing a mid-size SUV is obvious. Calling it the Aviator wasn't. I like it. Using Navigator design cues, this thing looks the part and should give Lincoln some energy and sales volume. Not playing in the midsize SUV segment has been a mistake for Ford's luxury brand, and the Aviator should fill a much-needed hole. Props to Lincoln for dusting off the Aviator name, most recently used on a rebadged Ford Explorer built in 2003-2005. It sounds classy and historic, like something from 1930s, even though it only dates to the tail end of the " Friends" era. Speaking of names, when the MKC gets a new one, Lincoln should dust off Zephyr, a moniker it actually used in the '30s and then briefly in the early 2000s. Why use the Aviator name? Jim Farley, Ford's president of global markets, said it's about reminding consumers that Ford has traditionally built strong SUVs. "I think in a way the legacy is falling in love with what we do best," he said. "We wanted to go back to our roots. We know how to do this well." Farley also said the Aviator could prove to be Lincoln's bestseller. The Aviator was well-received in New York, earning our Best in Show award and garnering cautiously optimistic reactions from some analysts. "Lincoln ran this experiment once before ... differences in the market conditions, stronger differentiation and appetite for utility vehicles may prove a different story for this Aviator," IHS analyst Stephanie Brinley said. View 19 Photos News: VW surprised the car world with the Atlas Tanoak pickup concept Views: Good move. VW should build this. The concept is based on a longer version of the Atlas platform and would take aim at the midsize truck segment. VW is using this prototype to "gauge the reactions" of automotive influencers, but make no mistake, the Tanoak is totally doable. Using Atlas bones and mechanicals punched up with rugged styling and some soft-road capability, the Tanoak would grow VW's portfolio in a smart way. The Atlas Cross Sport concept, also revealed in New York, signals that Atlas expansion is already underway.

Volkswagen E-Co-Motion Concept brings electric mobility to the commercial set

Volkswagen sees a future where the bulk of the world's freight is moved into city centers by train, then offloaded onto a fleet of smaller, light-duty commercial vehicles for final delivery. Those vehicles could wind up looking something like the company's E-Co-Motion Concept that debuted at the 2013 Geneva Motor Show. The EV features a modular underfloor drive unit comprised of a battery, motor and gearbox that can be paired with any number of cab and body configurations to suit a buyer's needs, from a refrigerated box to a standard flat bed.
The E-Co-Motion Concept features a rear-mounted electric motor with 113 horsepower and 199 pound-feet of torque. A standard 20 kWh battery pack provides a driving range of up to 62 miles, while 30 kWh and 40 kWh packs could deliver 93 and 124 miles of travel, respectively. Check out the press release below for more information.