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Audi investing $30.3 billion through 2018 for product expansion

How does Audi plan to reach two million units in annual sales and pay for the 11 new models it's adding to its lineup - an expansion that may include models named SQ2, Q9 and F-Tron? By increasing its investment to 22 billion euros ($30.3 billion US) between now and 2018. That figure represents an increase of about 500 million euros over the previously planned outlay, according to a report by Automotive News, and that could be due to Audi wishing to goad the momentum that pushed it to 1.5 million annual sales two years ahead of schedule.
It's also about staving off the challenges from BMW and Mercedes-Benz. Now that BMW has been able to turn some of its attention away from its "i" series of Megacity cars, it will reportedly spend more than planned in 2014 as it continues the rollout of ten all-new vehicles and 15 new-generation vehicles through the end of next year. Mercedes, having been dropped to third in the sales race, is preparing to add 13 new cars over the next six years.
Audi's money is going into technology, into product like the next-generation TT and the Q1 and production expansions and upgrades all over the world. The expenditure represents just under a fourth of Volkswagen's 84.2 billion-euro ($115.7 US) outlay devoted to taking the number-one global automaker title away from General Motors and Toyota by 2018.

VW boss confirms Subaru-aping Golf Alltrack for US

Subaru needs to watch out, because the Japanese brand with a utilitarian image has a big bull's eye on its back. Not only is Acura considering going 100-percent all-wheel drive in a bid to mimic the successful automaker, Volkswagen has just confirmed that the Golf Alltrack is coming to the US as another competitor for Subaru's popular Outback crossover. Volkswagen Group of America CEO Michael Horn has confirmed the addition of the higher-riding, all-wheel drive version of the Golf SportWagen to Automotive News, indicating that the model will arrive in the US in 2016. "That's what our dealers, our customers, are asking us for," he said to the industry publication. The Golf Alltrack, which debuted at the Paris Motor Show in early October, has an extra 0.75 inches of ride height and protective black cladding all the way around. Its biggest mechanical differentiator from other Golfs is its Haldex all-wheel drive system, a setup that can completely unhook from the rear axle when not needed to save fuel. In Europe, the Alltrack is available with a turbocharged 1.8-liter with 178 horsepower and two diesels offering between 109hp and 182 hp. However, Horn made no mention of likely powertrains for the US. Horn tells Automotive News that all-wheel drive tooling is currently being installed at the Puebla, Mexico, factory where the standard Golf Sportwagen is built. VW might have tipped its hand about this possibility several months ago when press shots of the wagon were released for the US with TDI and 4Motion badges. Horn says he expects even the front-wheel drive version to be a sales hit here, suggesting it may eventually account for 50 percent of the Golf range's volume.

Volkswagen officially grants access to UAW in Tennessee

An audit at the Volkswagen factory in Chattanooga, TN has revealed that at least 45 percent of the facility's workers support unionization, leading the German company to grant access rights to the United Auto Workers. This is a tremendous step in the UAW's long-running and at times contentious pursuit of the workforce at Chattanooga. With this latest move, "local leadership is ready to move forward with additional conversations with the company," the union said in a statement obtained by The Detroit News. "As a starting point, UAW Local 42 will take advantage of the company's offer to establish bi-weekly meetings with Volkswagen Human Resources and the Volkswagen Chattanooga Executive Committee." The News reports that UAW Secretary-Treasurer Gary Casteel, shown above speaking at the Chattanooga plant last summer, claimed these meetings "will remind Human Resources and the Chattanooga Executive Committee of the mutually agreed-upon commitments that were made by Volkswagen and the UAW last spring in Germany. Among those commitments: Volkswagen will recognize the UAW as the representative of our members. We believe Volkswagen made this commitment in good faith and we believe the company will honor this commitment." It's important to note that despite Casteel's remarks, this is not a collective-bargaining agreement, Harley Shaiken, a labor professor at University of California, Berkeley, told The News. "But it is a step in the direction of recognition, which ultimately could lead to collective bargaining. This is not the end point," Shaiken said. "We don't know what's next. We're in unchartered territory."