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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 TT most likely to breed crossover derivative

Audi has been rolling out successive concepts based on the new TT. Aside from the production coupe and convertible, we've seen the Shooting Brake concept in Detroit, the Offroad concept in Beijing and, most recently, the Sportback concept in Paris. The clear message is that Audi plans on actually producing more derivatives of its stylish two-door, but the question is which one will come first?
Speaking with Britain's Car magazine in Paris this past week, Audi technical chief Ulrich Hackenberg indicated that, while the decision has still yet to be made, the crossover is the most likely candidate.
Producing the TT Offroad concept - or something like it - would give Ingolstadt another addition to its growing crossover lineup that already includes the Q3, Q5 and Q7. Whether this would come in addition to or instead of the rumored Q1 and Q4 models remains to be seen, but crossovers have become increasingly popular and profitable for German automakers like Audi.

Audi Quattro concept production hopes still alive, could be more radical

Remember the gestation period of the Lexus LFA, the one that, in automotive time, took so long that its origins could have been carbon dated? We feel like it's deja vu all over again, as Yogi Berra would have said, this time featuring the Audi Quattro and Audi Sport Quattro. It was 2010 when our cameras first glimpsed the Audi Quattro Concept (pictured right) at the Paris Motor Show, and we tasted its turbocharged 2.5-liter, five-cylinder powerplant not long after. Last year we met the hybrid, 700-horsepower Audi Sport Quattro concept at the Frankfurt Motor Show, but we got no closer to finding out if there'd ever be a version we could buy. A report in Autocar keeps the flame of hope burning, quoting Audi design chief Marc Lichte at the LA Auto Show saying, "We are working on Quattro, it is still alive." Lichte went on to say, however, that the next imagining is "more extreme" than those we've seen, and, "There will be surprises." Those words alone are a surprise. The last we heard about the Quattro revival was Audi boss Ulrich Hackenberg saying he wanted a more accessible homage to the original, and we don't know how "more extreme" jives with that. Seeing that Audi is serious about the idea, at least, we shouldn't have to wait long to find out. Just don't get your hopes up about its affordability yet.