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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

J.D. Power customer survey of dealers counts Cadillac, Buick as big winners

Cadillac and Buick have taken the trophies in J.D. Power's latest Customer Service Index Study examining satisfaction with dealer service. Surveying more than 90,000 owners and lessees of 2009-2013 model-year cars, the study found that those with pre-paid maintenance packages were ten percent more likely to buy their next car from the same brand.
Dealer satisfaction scores have improved overall, Cadillac nabbed the luxury segment ahead of Audi and Lexus, taking the crown that Lexus held last year. Buick keeps the mass-market dealer satisfaction win in the family, finishing ahead of Volkswagen and last year's winner GMC. The study also found that service department use of tablets increased customer satisfaction, as did "best practices" like "providing helpful advice." Who knew?
You can find details on those and more findings in the press release below.

Audi reveals all-new R8 ahead of Geneva debut

This year's Geneva Motor Show is shaping up to be an absolutely orgy of supercars, but though there will be many that will surely outperform it, few have been as hotly anticipated as the arrival of the all-new, second-generation Audi R8. And here it is. Based around an all-new Audi Space Frame chassis, the new R8 is constructed of a higher proportion of aluminum and carbon fiber than its predecessor. The result is a frame that weighs 15 percent less at just 441 pounds – yet is 40 percent more torsionally rigid - tipping the scales at 3,205 lbs in top spec. Into the middle of that frame Audi has installed a revised version of its 5.2-liter V10, eschewing turbochargers but incorporating new technologies. While other powertrain options are expected to follow, Ingolstadt has gone straight for the top of the range at launch: the 'base' V10 model kicks out 540 horsepower and 398 pound-feet of torque to reach 62 miles per hour in 3.5 seconds and a top speed of 201 mph. The upgraded V10 Plus, however, turns those figures up to 610 hp and 413 lb-ft to reach 62 in just 3.2 seconds, 124 in under ten and a 205-mph top speed. All the while, Audi has also equipped the new ten-cylinder engine with both direct and indirect injection, stop/start and cylinder deactivation systems to cut fuel consumption by 10 percent. It also boasts dry-sump lubrication and a variable exhaust system. Power is transmitted to the road through a seven-speed dual-clutch transmission, a mechanical diff and a revised Quattro all-wheel drive system that can send 100 percent of available torque to either the front or rear axle. Aluminum wishbones suspend it all on 19-inch wheels (or optional 20s), with available variable steering and carbon ceramic brakes (optional on the V10 and standard on the V10 Plus). Underbody aerodynamics generate more downforce and a more slippery form, aided by a deployable rear spoiler (or a fixed carbon wing on the Plus model). All those tantalizing greasy bits are cloaked in fresh aluminum sheet-metal, riding on a track that's 1.6 inches wider: the whole shebang stretches 14.5 feet long, 6.4 feet wide and 4.1 feet high, riding on an 8.7-foot wheelbase. Among the myriad new technologies developed for the new R8 are the full LED headlights with optional laser high beams (where they're legal, at least, which currently doesn't include these United States).