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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

Porsche would have entered F1 if Audi had blocked its Le Mans program

Go back a few years and you may have heard rumors of Porsche heading into Formula One. That never came to pass - or at least, it hasn't yet - but that doesn't mean that it wasn't close to happening. That's how committed to returning to top-level motorsport competition Porsche has become recently.
Autosport reports that just as Porsche was merging fully into the Volkswagen Group, Zuffenhausen was weighing its options for a factory racing program. Le Mans was its favorite, which makes sense, as it remains far and away the most successful constructor in the history of the famous endurance race. But the strategists at Porsche were worried that its new corporate overlords at Volkswagen wouldn't support two LMP1 programs and would favor Audi, which has positively dominated the modern era of endurance racing, coming second only to Porsche in the number of Le Mans victories it has scored to date.
Porsche's Plan B was reportedly to head into Formula One, although it isn't clear if the German automaker was intent on starting its own team, buying an existing one or merely providing engines to other teams. Porsche fielded its own cars in F1 in the late 1950s and early 60s, and returned as an engine supplier with TAG to power McLaren in the 1980s, powering Niki Lauda and Alain Prost to the World Championship in 1984 and 1985.

Audi reveals even more efficient 2015 R18 E-Tron Quattro

We've seen two of this year's LMP1 manufacturer challengers – Porsche's updated 919 Hybrid and Nissan's GT-R LM Nismo. Audi has finished cooking up the successor to its Le Mans champion and unveiled the fifth-generation R18 E-Tron Quattro, even better than before. The bodywork monocoque is carried over, but the body around it has been reshaped to improve airflow from front to rear with a new hood, front fenders and wheel arches, and radiator configuration. The engine cover behind the cockpit is shrunk more closely around the engine, and there are new headlights. The hybrid system can expend double the energy per lap this year, putting Audi in the four-megajoule class under the energy-use regulations. That extra energy will come from 17-percent more capacity built into the flywheel storage system and an electric motor good for 272 horsepower. The revisions haven't increased the weight of the car, pegged to the minimum allowed at 870 kilograms. They have, however, forced changes to the TDI engine, which has to use 2.5-percent less fuel per lap to offset the increased hybrid output. The 558-hp V6 has been optimized such that it "managed to more than compensate for the loss" of fuel allowed, and Audi expects "significantly" lower lap times this year and less fuel used. We're still waiting to see what Toyota has done to its World Endurance Championship-winning racer, but we're already looking forward to this year's Le Mans. It's going to be cracking. You'll find a press release below the videos with more info on the Audi. Related Video: New Audi R18 e-tron quattro even more efficient - Aerodynamics, hybrid drive and many other details improved - Efficient TDI engine consumes even less fuel than before - Technologies from Le Mans winning cars now in production at Audi Ingolstadt, March 21, 2015 – Audi is starting the 2015 season with a thoroughly revised R18 e-tron quattro. In the FIA World Endurance Championship (WEC) and in the Le Mans 24 Hours as the season's pinnacle event, Audi is going to compete with a hybrid sports car in the 4-megajoule class. A twofold quantity of hybrid energy, fundamentally revised aerodynamics, the next step in lightweight design and a lot of detailed work characterize the fifth generation of the Audi R18. "The possibilities of the revolutionary regulations that have been in effect for LMP sports cars since 2014 are far from having been fully used.