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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

2015 Audi Q3 headed for Detroit before hitting US showrooms this fall

The market for small premium crossover vehicles continues to grow in popularity here in the US, and Audi is finally ready to get in on the action. Going up against competitors like the BMW X1, Land Rover Range Rover Evoque and soon-to-arrive Mercedes GLA-Class, Audi will unveil a US-spec version of the 2015 Q3 at the Detroit Auto Show next week. And in what we can only assume is an amusing coincidence, the Q3 will go on sale during Q3 of this year.
As we reported back in October, it appears that our Q3 will boast a slightly taller ride height than its European counterpart, but Audi isn't releasing too much information about the crossover just yet. What we know for sure is that it will be powered by Audi's well-liked 2.0-liter turbocharged TFSI inline-four producing 200 horsepower and 207 pound-feet of torque. A six-speed automatic transmission and front-wheel drive will come standard, while Audi's Quattro all-wheel-drive system will be optional.
Visually, the 2015 Q3 shown here has a different front fascia design than its European counterpart, but it's not immediately clear if this is exclusive to the US model or if it will be a new element for Q3 in all markets. We don't expect pricing to be announced until closer to its on-sale date, but the Q3 will definitely be stuffed with content, even in base form. Audi has already confirmed such niceties as a panoramic moonroof, Xenon headlights and heated leather seats. Delivering a good amount of practicality for its size, the Q3 will provide a maximum cargo capacity of up to 48.2 cubic feet and 16.2 cu-ft with the rear seats in place.

Audi S1 rally car races its RC counterpart

Veteran racer Mattias Ekstrom campaigns the meanest looking Audi S1 on the block in the FIA World Rallycross Championship. With a 2.0-liter turbocharged four-cylinder pumping out a claimed 600 horsepower and all-wheel drive, this little hatch can reportedly hit 60 miles per hour in a wickedly quick 1.9 seconds. While those specs are mighty impressive, they don't really matter too much for Ekstrom's latest race in the S1 against a pint-sized doppelganger in the form of an RC replica of the rallycross machine around a warehouse. Despite, the massive gulf in size and power, the two Audis appear fairly evenly matched. The RC version can't quite match the real one in outright speed but can go under obstacles that Ekstrom's S1 is forced to drive around. Check out the clip above to see which S1 makes it to the finish first. Related Gallery EKS Audi S1 Supercar News Source: Audi Deutschland via YouTubeImage Credit: Related images copyright EKS Motorsports Toys/Games Audi Hatchback Racing Vehicles Videos rc car audi s1