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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

Audi Q7 to be first diesel plug-in from VW group

Lending credence to prior reports, the next Audi Q7 will be available with a diesel-powered, plug-in-hybrid powertrain, Automotive News claims, after speaking to a source in the Volkswagen Group. Both the gas and diesel-powered Q7 will debut in 2015, with the diesel PHV to arrive after that. Unlike Europe's other plug-in diesel, the Volvo V60, Audi's Q7 will be sold on both sides of the Atlantic, the source told AN. You can see a few spy photos of the Q7 PHV above. Audi research and development boss Ulrich Hackenberg previously confirmed that diesel plug-ins would be arriving earlier this year, although it wasn't clear which models the ultra-efficient powertrains would be offered on, or which of those would be offered here in the US. Time to play the waiting game...

New Audi TT likely headed for Geneva reveal

Between the Consumer Electronics Show and the Detroit Auto Show, Audi is creating plenty of buzz lately for its upcoming third-generation TT. Fortunately, we won't have to wait too much longer to see the next Audi TT, though, as Autocar reports that the coupe will make its big debut at the Geneva Motor Show.
In speaking with Audi's technical chief Ulrich Hackenberg, the article states that the 2015 TT will first be revealed in March before going on sale later in the year. Previewed by the Allroad Shooting Brake Concept (shown above), it isn't that hard envisioning what the new TT could look like: ditch the shooting brake roofline, tall ride height and obvious conceptual design cues. Of course, if this styling is more your thing than the two-seater TT, Hackenberg left open the possibility of a TT Allroad or even a TT-based crossover.