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VW and partner SAIC start building $2.5B Audi plant in China

BEIJING — Volkswagen AG's China joint venture with SAIC Motor Corp has started building a $2.5 billion new energy vehicle (NEV) plant in Shanghai, which will make VW's luxury Audi brand cars, a possible first for the venture. The new plant is a key step for Audi to diversify production of its cars in the world's largest car market from its long-standing local partner, China FAW Group Corp. This shift has been delayed amid resistance from local dealers. SAIC Volkswagen said the new plant would have an annual capacity to make 300,000 cars and begin production from 2020. Audi sold 481,387 vehicles in China from January to September this year. The announcement comes the same week Tesla secured a Shanghai location for a Gigafactory battery plant to serve the Chinese market. Audi unveiled the plan to bolster ties with SAIC in late 2016. Earlier this year, the Germany luxury carmaker bought a 1 percent stake in the SAIC Volkswagen venture, paving the way for the joint venture to produce and sell Audi cars. Volkswagen currently gets a larger proportion of the proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. SAIC Volkswagen said in a statement on Friday the plant would cost 17 billion yuan ($2.5 billion) and would make VW and Skoda models as well as Audi cars. It will help VW tap China's fast-growing market for NEVs, a category comprising electric battery cars and plug-in electric hybrid vehicles. ($1 = 6.9314 Chinese yuan renminbi) Reporting by Yilei Sun and Adam JourdanRelated Video: Image Credit: Reuters Green Plants/Manufacturing Audi Volkswagen Skoda Electric Hybrid

2016 Audi TT Second Drive [w/video]

The original Audi TT is a modern style icon. But having a one-time design hit isn't a recipe for longevity. In order to succeed, you have to bolster style with substance. Thankfully, that's exactly what Audi did with its third-generation TT. Now more than ever, the TT is a proper sports car, and it debuts with a host of new technology. The car still looks good, but it's no longer a one-off masterpiece. Instead, it takes many of the original TT's elements and incorporates new bits of modern detailing. The shape is all TT – the roofline, the wheel arches – even smaller details like the fuel filler cap and exhaust outlets moved closer to the center of the vehicle pay homage to the original car's design. But the new car's face is more angular, more robotic. Park the new R8 next to this TT and the family resemblance is clear. "It's fair to say that the new car hasn't been comprehensively reconceived; it's been comprehensively re-detailed," says associate editor Jonathon Ramsey, who first drove a Euro-spec TT back in September. It's a good move, a way to "keep the icon alive," according to Audi AG exterior designer Dany Garand. But the better news is that the rest of the car is more than just a comprehensively re-detailed machine. Launch a TT coupe from a stop and you'll hit 60 miles per hour in 5.3 seconds. The TT rides on the same modular MQB architecture as the Volkswagen Golf. The whole package is the same length as before, but the wheelbase is stretched by 1.5 inches. At 3,186 pounds, the TT is only 11 pounds heavier than its predecessor, but thanks to new body components, it's 25-percent stiffer than the second generation. We sampled the base TT on the roads of northwest Oregon – that means there's a 2.0-liter turbocharged inline-four good for 220 horsepower and 258 pound-feet of torque. It's the same output as a GTI with the Performance Package in a two-door coupe that's 155 pounds heavier. But stay with us – the magic of Quattro all-wheel drive seriously comes into play here. Launch a TT coupe from a stop and you'll hit 60 miles per hour in 5.3 seconds. Even the TT Roadster is a firecracker, able to do that same 0-60 run in 5.6 seconds. That 220-hp, front-wheel-drive GTI, by comparison, hits 60 in about six seconds flat. We didn't get to drive the TTS, but based on numbers alone, it ought to be a real honey. The S uses the more powerful version of the 2.0T engine from the Golf R, with 292 hp and 280 lb-ft of torque. Zero-60: 4.6 seconds.

Audi rules out R8 PHEV, will build E-Tron to order

The question of whether Audi will morph the next-gen R8 (pictured above, in testing) into a plug-in-hybrid challenger for the BMW i8 may have been answered. CarAdvice, in Australia, is claiming that any plans for a PHV 2016 R8 have been shelved, and that Audi will go ahead with gas-powered or all-electric models, only.
Even then, the electric R8 E-tron (if it ends up being called that) would be built-to-order, and in much smaller quantities than the gas-powered model.
"In the next generation we will have an electric car on behalf of customers' needs, which is only available [upon special order]," Audi product manager Marie Suzanne Ernst told CA. "So it's not a make of series production, but if a customer wants to have it, he can order it."