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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 chooses A3 as its Super Bowl darling

With Super Bowl XLVIII less than two months away, we're sure to hear plenty of news about automakers and their various plans for in-game commercials. Audi has announced that it will return for its seventh year of Super Bowl advertising, but few details were provided about the spot other than the fact that it will focus on the all-new 2015 A3.
The 60-second ad will air during the third quarter of the game, and while Audi did not say how much it is spending on the spot, Ad Age says that a 30-second commercial will average around $4 million for next year's Big Game. Last year, Audi's choose-your-own-adventure "Prom" commercial was the second favorite video in our unofficial poll of readers, but the competition should heat up even more this year with General Motors returning to Super Bowl advertising after taking a year off and Jaguar preparing its first-ever Super Bowl ad to introduce the F-Type Coupe.

Audi A3 E-Tron is a look at battery-operated things to come

Audi officially unveiled the A3 Sportback E-Tron at the 2013 Geneva Motor Show. While not a production model, the plug-in hybrid gives us a good glimpse at what the German automaker has in store for future products. The five-door gets around thanks to parallel hybrid drivetrain comprised of a turbocharged 1.4-liter four-cylinder engine and a small electric motor integrated into the vehicle's six-speed dual-clutch transmission. While the four-cylinder churns up 150 horsepower and 184 pound-feet of torque, the motor contributes 100 horsepower and 242 lb-ft of twist. All told, the design allows the E-Tron to serve up its full power from just 1,750 rpm.
An 8.8-kWh lithium-ion battery sits under the floor beneath the rear seat, complete with a liquid cooling system designed to keep the pack in its optimum temperature range. The A3 Sportback E-Tron can be charged in as little as 2.5 hours with a 3.6-kW charger, yielding an EV range of up to 31 miles. The machine can also travel using the electric motor, ICE or a combination of the two for a total range of 584 miles. Check out the full press release below.