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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

Audi reveals new A3 Cabriolet with Quattro, S3 versions to follow

With the Frankfurt International Auto Show coming home to roost this week, German automakers aren't about to miss out on the opportunity to roll out their latest. Audi may be making the biggest splash with the new Sport Quattro concept, but will also use the occasion to introduce its latest compact convertible.
We just brought you the first leaked images of the new Audi A3 Cabriolet the other day, but now Ingolstadt has revealed the full thing. Slotting in below the A5 Cabriolet and replacing the previous A3 Cabriolet as the entry-level convertible in the Audi lineup, the new cabrio joins the A3 family as the fourth bodystyle in the range.
Based more closely on the sedan than the hatchback, the new A3 Cabriolet is a bit bigger than its predecessor in every dimension but height. Rather than go the folding hardtop route, Audi has stuck with its tried-and-tested hydraulic fabric roof mechanism that can open or close in just 18 seconds. But for the first time, Audi is offering the A3 Cabriolet with Quattro all-wheel drive, and - get this - will offer an S3 convertible version as well, complete with 300 horsepower and a 5.4-second 0-62 time.

Audi A8 could spawn Mercedes-Maybach S600 rival

Five years ago, there was no middle ground for big luxury sedans. You either bought a $100,000 Mercedes-Benz S-Class, Audi A8, or BMW 7 Series, or you spent $225K on a twelve-cylinder Bentley Continental Flying Spur. But today, the market is changing. Bentley sells a V8-powered Flying Spur for around $200,000 and Mercedes is successfully selling a longer, twelve-cylinder, ultra-lux S-Class for $190,000. The middle ground is growing, and Audi wants in on the action. Audi is looking closely at the Mercedes-Maybach S600, according to Dr. Stefan Knirsch, the company's new technical leader. The company recently introduced a one-off A8 limo, shown above, although we'd imagine an S600 rival would be a more manageable size. "We are thinking about it," Knirsch told AutoExpress at the launch of the new SQ7. "The success of the extra-long version of the S-Class has got us wondering about whether there could be a business case for that in the future." Knirsch's comments raise a number of questions about a potential ultra-lux A8. Would it be longer than the A8L? The extra backseat space is a key part of the Maybach S600's appeal. What about the badge? Audi doesn't have a nameplate to rival Maybach to distinguish such an exclusive A8 from its more affordable siblings. Will the Audi offer more or fewer shades of black/silver than the S600? But the biggest question is what a bigger, more luxurious A8 could mean for the rest of the A8 range. As AE explains, Mercedes has done a remarkable job of fleshing out the S-Class range, with the normal sedan, Maybach, Coupe, Cabriolet, and their accompanying AMG variants. The Maybach S600 started that process – could an extra-large competitor kickstart Audi's full-size luxury expansion? The A8 has long been subject to gossip that it'd spawn an A9 Coupe (2014's Prologue Concept only fed that particular rumor mill), after all. Beyond hinting at a more luxurious A8, Knirsch expounded on another piece of exciting news: the next A8 will get Level 3 automation. That would mean full driverless ability "with the expectation that the human driver will respond appropriately to a request to intervene," according to the SAE's official definition. While Audi confirmed last year that the A8 could drive itself at speeds up to 37 miles per hour, Knirsch's more specific comments make it sound like the system could be even more advanced than originally thought. Related Video: