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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 bringing Q3 Stateside after all?

One of the major changes that made to the Audi SQ5 to get it ready for the US market was a ride height that was lifted by 1.2 inches compared to its European counterparts. The small increase allowed the SQ5 to retain its "light truck" classification of the Q5 for emissions regulations. In a similar move, Car and Driver is reporting that the Audi Q3 crossover will also be joining the Audi lineup in the US once it receives a facelift and taller ride height.
Expect this facelift to fit in with other recent product updates including the Q5, which mainly focused on a cleaner, more upscale front end and the company's signature LED running lights. The report says that Audi could bring the Q3 Stateside "within a year or two," and it also says that a souped-up RS Q3 will follow close behind. This performance version of the compact crossover gets its power from a 2.5-liter turbocharged inline-five-cylinder engine shared with the Audi TT RS.

Audi races ahead with new R8 LMS [w/video]

The biggest news from Audi at the Geneva Motor Show may very well be the reveal of the all-new, second-generation R8 supercar. But the road-going version isn't the only one it's rolling out at the Swiss expo, where it's joined by the new competition-spec R8 LMS. Set to hit race tracks around the world next season, the new Audi R8 LMS picks up where the current one leaves off, having taken 26 GT3 Championship victories and seven 24-hour race wins between 2009 and 2014. That's a heck of a mantle to assume, but the new model looks like it'll be up to the task. Based on the new road-going R8, the new LMS is built to 2016 GT3 regulations and in many ways even exceeds them. In fact, Audi says it meets the more stringent crash requirements for the LMP1 class, and includes its state-of-the-art Audi Protection Seat PS 1 from the R18 E-Tron Quattro. It also incorporates the emergency hatch Audi built in to its DTM racers. Of course, there's more to the new R8 LMS than safety. Despite the addition of those features, the whole package is a good 55 pounds lighter than the outgoing model, thanks to the lightweight spaceframe chassis and the increased use of carbon-fiber components – all the while offering more torsional rigidity. Power still comes from Audi's celebrated 5.2-liter V10 engine producing 585 horsepower, but is now mated to a new six-speed sequential gearbox and benefits from an entirely new electrical system, improved airflow and optimized aerodynamics. All that and more ought to help the new R8 LMS and its customer racing teams achieve the success they're after once it makes its competitive debut at the Nurburgring 24-hour race in mid-May 2016. Related Video: AUDI R8 LMS ESTABLISHES NEW RACE CAR GENERATION: LIGHTER AND SAFER THAN EVER BEFORE Ingolstadt, March 3, 2015 – Audi is again running in front. As one of the first automobile manufacturers to do so at the beginning of the 2015 season, the brand with the four rings is presenting a race car that already meets the requirements of the new GT3 regulations to be introduced in 2016. The new Audi R8 LMS is lighter and safer than ever before. It features even more race car technology, clearly improved aerodynamics and, as a result, provides customers with an efficient concept. Back in spring of 2014, Audi began testing the new R8 LMS that is following in big footsteps.