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Audi S1 nearly ready to rocket euros out of your pocket

Audi was out testing its upcoming S1 on the streets of Germany when our trusty spy photographers snapped the new, all-wheel-drive hot hatch that's set to succeed the limited-edition A1 Quattro.
Unlike the A1 Quattro, the S1 should sport a much less aggressive look overall. As shown in the spy shots, its wheel wells lack the meaty flairs of its predecessor while its rear wing is much more subdued. The wheels are more in line with what we expect from Audi's S models and its higher ride height is more conducive to common things like steep driveways and speed bumps that the 333-unit A1 Quattro might not encounter.
According to our spies, the S1 should hit the European market with anywhere from 220 to 250 horsepower, making it considerably more potent than competitors like the Ford Fiesta ST or Polo GTI from its parent company, Volkswagen (although it'll likely arrive at a considerably higher price than either of those pocket rockets). On the high end, that's roughly equal to the 252 ponies generated by the 2.0-liter, turbocharged four in the A1 Quattro

U.S. tariff threat hits European automakers' stocks

FRANKFURT, Germany — A U.S. warning that it may introduce tariffs on foreign auto imports hit shares in German carmakers BMW, Daimler and Volkswagen on Thursday, which together have a more than 90 percent share of North America's premium car market. Washington said on Wednesday it had launched an investigation into whether car and truck imports are a national security issue due to signs they had damaged the U.S. auto industry. That could lead to new U.S. tariffs — up to 25 percent — similar to those imposed on imported steel and aluminum in March. BMW and Daimler shares fell as much as 3.1 percent in early Thursday trading, while Volkswagen's dropped as much as 2.5 percent. "(U.S. President) Donald Trump is obviously not thinking about how to prevent a trade war. Import duties on cars would be a nightmare for the German auto industry and would lead to a massive sales impact," said Thomas Altmann at Frankfurt-based asset manager QC Partners. BMW on Thursday condemned the move to consider tariffs. "The BMW Group is committed to free trade worldwide. Barrier-free access to markets is therefore a key factor not only for our business model, but also for growth welfare and employment throughout the global economy," it said. Daimler, which makes Mercedes-Benz cars, and Volkswagen, which makes upmarket Audis and Porsches, were not immediately available for comment. German carmakers produced 804,000 cars at local factories in the United States and exported 657,000 German-made cars into North America last year, according to German auto industry association VDA. China took pains on Thursday to welcome German firms and investments, with Premier Li Keqiang talking up relations after a meeting with German Chancellor Angela Merkel. BMW and Mercedes have expanded production capacity in the United States, but BMW, Audi, Volkswagen and Daimler have also invested billions to build new factories in Mexico in the hope of selling locally produced cars into the United States. German carmakers hiked vehicle production in Mexico by 46 percent to 620,000 cars last year, while production levels inside the United States fell by 6 percent to 804,000 cars because of a shift to Mexico, according to the VDA. BMW has its biggest factory worldwide in Spartanburg, South Carolina, and is the largest vehicle exporter among all the carmakers in the United States measured by value of goods exported. More than 70 percent of BMW's U.S.-made cars are exported.

Audi unveils A3 Sportback G-Tron with bi-fuel power, 808-mile range

By this time next year, the Audi A3 Sportback will be offered with a variety fuel-efficient powertrains ranging from diesel to the all-electric E-Tron, but perhaps the most interesting is the all-new G-Tron model, which uses Audi's innovative carbon-natural compressed natural gas called e-gas. Previously called A3 TCNG, we first heard about this technology last year, but now Audi has confirmed that this low-emission, sustainable-fuel will debut by the end of this year on the A3 Sportback G-Tron.
To create this e-gas, a plant in Werlte, Germany uses electricity to split water into hydrogen and oxygen. As hydrogen fuel cell vehicles become more popular, Audi says that this process could also be used to produce hydrogen fuel, but to create CNG, it mixes the hydrogen with carbon dioxide to create "synthetic methane." Since it is identical to the CNG available today, Audi's e-gas can be shipped and stored using the existing CNG infrastructure. Making the whole process even greener, Audi obtains the CO2 for this process from a nearby biogas plant, which would otherwise be released into the atmosphere.
Differentiated from the regular versions of the A3, the G-Tron features a pair of tanks under the rear cargo floor holding 15.43 pounds of CNG, which can power the car for almost 250 miles. What's more, the A3's conventional gasoline tank is still in place, giving the car an addition 560 miles of range. In total, that means the A3 G-Tron has a driving range of more than 800 miles. To run on both CNG and gas, Audi made changes to the car's 1.4-liter four-cylinder engine (including the turbo, cylinder head and fuel injection system) and catalytic converter.