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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.

More next-gen Audi TT details revealed

We still only have rumors about the third-generation Audi TT said to be scheduled for launch in late 2014, but based on a report in Car and Driver, we know a tiny bit more about it. The base engine will be the 2.0-liter turbo four-cylinder with direct injection, but horsepower is said to be 220 horsepower - that would make for a nine-hp jump over the current output. The TTS would get an even larger power boost, going from 265 currently to 300 hp. The TT RS would stick with it's 2.5-liter five cylinder, with output increased from 360 to 380 hp. If Audi includes a nice dose of the go-light engineering involved in the TT Ultra Quattro, these horsepower numbers might be even more impressive.
As with the TT concept and first-generation production car, though, it sounds like the brand is concentrating on aesthetics. It's been widely reported that Audi wants to reclaim the juju conjured by the original TT, and while we still don't know what that means outside, CD reports that the interior gets simplified, "futuristic-feeling" styling thanks to instruments served up on a TFT screen. Remember, the first Audi TT had a cockpit that Car magazine dubbed simply, "The Cabin."
About a year after the coupe comes, the Audi TT Roadster will show up and should be joined by the next A5. The news for the next version of the subtly beautiful coupe is the arrival of a plug-in hybrid with torque vectoring via an electric motor for the rear axle. Beyond that is wilder speculation of an A9, which might be called Q9, and which was the four-door-coupe flavor of the month two years ago when it was possibly going to share a platform with the Lamborghini Estoque. According to the CD story, the thinking now is around "a combination of fastback and crossover proportions," a two-fer we've yet to see any carmaker pull off without making us go, "Oh. I see."

2014 Audi S1 is a little hatch hiding huge power [w/video]

The Audi S1 takes the Four Rings' high performance brand to its smallest model yet. Offered in three- and five-door forms (pictured above), the S1 is a subcompact hot hatch that seems specially suited for Europe's dense cities and tight roads.
The S1 follows the rest of the Audi S vehicle lineup with a very understated design. It maintains the looks of the standard car, but the larger air dam, 17-inch wheels and side sills tells viewers that something mean is lurking under the surface as well. It packs the Volkswagen Group's ubiquitous 2.0 TFSI four-cylinder, tuned here to produce 228 horsepower and 279 pound-feet with a six-speed manual transmission and all-wheel drive, and it is enough to get it to 62 miles per hour in less than six seconds for either body style and to a top speed of 155 mph. Handling is aided by a more sophisticated four-link independent suspension to replace the standard A1's torsion beam setup.
They come in just two colors for now - Vegas Yellow or Sepang Blue - and are hitting European roads later this spring. UK prices start at £24,900 ($41,518) for the three-door and £25,630 ($42,735) for the five-door.