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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

2015 Audi RS5 Coupe Sport is one of 75

Audi has released a new limited edition of its V8-powered RS5, with the 2015 Sport edition. Limited to just 75 units and designed by the German manufacturers Exclusive customization team, the stylish RS5 starts at $87,575. That's nearly $17,000 more than the standard RS5, although you might struggle to see why. The Sport adds beautiful 20-inch 5-V-spke wheels, along with plenty of nice leatherwork in the cabin. That includes the black-and-Crimson-Red Nappa leather seats, which feature an embossed RS logo in the seatback, as well as Crimson Red leather door inserts. Contrast stitching in the leather-wrapped wheel and shifter boot match the shade on the seats and door inserts. Audi will paint the limited-edition RS5 in either Daytona Gray or Nardo Gray for no charge or, if you're willing to pay a bit more, you can chose from one of the shades from the manufacturer's Exclusive catalog. There's no mention of how much these custom hues will cost, though. Beyond that, the RS5 Sport is the same thumper that's been on sale for several years, with a 4.2-liter, 450-horsepower V8 under the hood and a seven-speed, S-Tronic transmission dispatching power to a Quattro all-wheel-drive system. Featured Gallery 2015 Audi RS5 Sport View 9 Photos News Source: Audi Audi Coupe Luxury Performance

Audi S3 Cabriolet spotted in the world for the first time

Spy photographers have finally managed to lay a lens on the upcoming Audi S3 Cabriolet. The new convertible stepped out into the light of day for a little winter testing, and from the looks of things, the model will borrow plenty of design cues from the larger A5. Not that we're complaining. Word has it the S3 will put around 300 horsepower to the pavement via a quattro all-wheel drive system. We've also heard the machine will boast a dual-clutch transmission once it bows.
We've long been fans of the S3 Sportback, and the S5 holds a special place in our hearts as well. A smaller, lighter version of the big cabriolet with all of the aggressive proportions of its larger brother should prove to be a welcome addition to the Audi stable. Stay tuned for more information as it becomes available, and be sure to check out the full gallery for a closer look.