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'Worldwide, every third Audi will be an SUV by 2020'

Automotive News Europe reports the new Audi manufacturing facility in San Jose Chiapa, Mexico will increase the automaker's production capacity for the Q5 SUV by 150,000 units per year. While the plant will supply every market with the exception of China, most of the production is slated to head to the US.
While speaking with ANE, Audi CEO Rupert Stradler said, "Worldwide, every third Audi will be an SUV by 2020." So far this year, 40 percent of Audi vehicles sold in the US have been light trucks, with the company's sales in that segment jumping by 53 percent. By comparison, Audi passenger car sales have increased by just one percent.
The first Q5 vehicles from the San Hose Chiapa plant will show up on dealer lots in 2016. Audi of America recently received a larger 9,000-unit allocation of Q5 models after seeing sales increase 36 percent through April compared to the same period in 2012.

2017 Audi S4 switches to turbo power, loses manual

If you dig the understated look of the 2017 Audi A4 but crave more power, then check out the latest S4. The new sport sedan sticks with a V6 but ditches the supercharger in favor of turbocharging to now produce estimated US figures of 354 horsepower and 369 pound-feet of torque. If there's one downside to the upgrade, it's that Audi only plans to offer the mill with an eight-speed Tiptronic automatic gearbox. The 2017 S4 is now quicker than before. The run to 62 miles per hour takes just 4.7 seconds, versus 4.9 seconds for the current sedan to reach 60 mph. The top speed remains at an electronically limited 155 mph, but fuel economy is claimed to be improved with a rating of 31.8 miles per gallon on the European testing cycle. All S4s come with Audi's venerable Quattro all-wheel drive, and it generally operates with a 40:60 front-rear power split. As conditions change, a maximum of 70 percent of the grunt can go to the front or 85 percent to the rear. Handling is also aided by a tweaked suspension that sits 0.9-inches lower than the A4. Beyond the different badges, the latest S4 doesn't visually advertise its prowess. LED lighting is standard, and quad exhausts rest in a new rear bumper with a subtle diffuser. The side mirror housings also get some aluminum-look trim. The interior layout echoes the A4 but with sport seats and a mix of Nappa leather and Alcantara upholstery. Audi's digital instrument cluster is optional and includes an exclusive sport screen among the three views. The new S4 goes on sale in 2016 as a 2017 model. In addition to the lack of a manual, there's no intention of offering the S4 Avant in the US. Sporty and high-tech: the new Audi S4 and S4 Avant September 15, 2015 | FRANKFURT/INGOLSTADT, Germany Audi launches the new S4 and S4 Avant at the IAA in Frankfurt am Main. The top models from the A4 series are ahead of the competition – with intelligent lightweight design, powerful engines, an extensive package of the latest technologies, and 260 kW (354 hp), 0 to 100 km/h (0 to 62 mph) in 4.7 seconds. (The all-new A4 and S4 are expected to go on sale in the U.S. market in 2016. The Avant is not planned for the U.S. market.) "At Audi, we have more than 20 years of expertise in developing our sporty S models," says Professor Dr. Ulrich Hackenberg, Member of the Audi Board of Management for Technical Development.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.