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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

VW stripped of Green Car Of The Year awards for Jetta, A3 diesels

In the wake of the ongoing VW diesel scandal, Green Car Journal has announced it will rescind the two Green Car Of The Year awards that the Volkswagen Group won with diesel vehicles that have been since been proven to not meet the stated emissions levels. The two vehicles are the 2009 VW Jetta TDI, which won in 2008, and the 2010 Audi A3 TDI, which won in 2010. Green Car Journal (GCJ) did not say if it would retroactively name any replacement winners. This is the first time in the history of the Green Car Of The Year Awards that the honor has been taken away from the winner. In a statement announcing the change, GCJ publisher Ron Cogan wrote that, "this award rescission should not cast a negative light on advanced diesel technology in general. Many diesel models from a variety of auto manufacturers meet EPA and CARB emissions standards, bringing with them higher fuel efficiency, decreased petroleum use, and lower carbon emissions – all important environmental goals." VW AND AUDI RETURNING GREEN CAR OF THE YEAR® AWARDS, VEHICLES DEEMED INELIGIBLE SAN LUIS OBISPO, Calif., Sept. 30, 2015 – Green Car Journal is rescinding the Green Car of the Year® awards previously honoring the 2009 VW Jetta TDI and 2010 Audi A3 TDI, the first time this has occurred in the award program's decade-long history. Audi of America President Scott Keogh has informed Green Car Journal that Audi will return its 2010 Green Car of the Year® award in the wake of Volkswagen Group's admission that it deliberately deceived government authorities about emissions from the Audi A3 TDI. Volkswagen of America has also informed Green Car Journal it will return its 2009 Green Car of the Year® award for the VW Jetta TDI. "Rescinding the Green Car of the Year® awards for the VW Jetta TDI and Audi A3 TDI is unfortunate but appropriate," said Ron Cogan, editor and publisher of the Green Car Journal and CarsOfChange.com. "These models were selected as Green Car of the Year® above others for compelling reasons, including high fuel efficiency, reduced carbon emissions, a fun-to-drive nature, and the ability to meet 50 state emissions requirements with advanced diesel technology." However, VW Group has now admitted that its software programming intentionally caused in-lab emissions testing to read significantly lower nitrogen oxide emissions than these vehicles actually produced on the road.

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.