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Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.

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

Auto Express gets close-up look at the 2016 Audi R8

Audi invited Auto Express to the Ascari circuit in Spain to get a ride in the new R8 that will be introduced at the Geneva Motor Show. Jack Rix starts by giving us a walkaround of the camouflage-covered coupe, the obvious difference between it and the leaked image from a couple of weeks ago being the slatted front intakes. However, those intakes are present on the image Audi teased showing off one new, slimmer, laser headlight. The biggest shock: there will be no V8 model at launch - there will be one engine in two levels of tune. The first is the 5.2-liter R8 V10 with 540 horsepower, a bump of 15 hp over the present car. The second is the 5.2-liter R8 V10 Plus with 610 hp, a leap of 60 hp over the current model. That hotter trim, identified by its fixed rear wing, drops the 0-60 mile per hour time by a half-second to 3.2 seconds, and increases top speed seven miles per hour to 205 mph. Rix ran his fingers along the intakes behind the door and said he could feel sideblades, so all is not lost - what would an R8 be without sideblades? More obviously, on the V10 Plus Rix looked over there are new trapezoidal exhaust tips framing a serious diffuser in back. Underneath, the aluminum chassis adapted from the Lamborghini Huracan is 15 percent lighter than before and 40 percent stiffer. Shifting will be done via a seven-speed S-tronic dual-clutch transmission only. There are seven driving modes, a switchable exhaust note, and more direct variable steering. The German test driver Rix rode with said the new R8 is easier to drive faster, which - no matter what you think of the looks - will make it pretty special. News Source: Auto Express via YouTubeTip: Clark Geneva Motor Show Audi Coupe Luxury Performance Videos