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Audi spending an additional $2.5 billion on expansion through 2019

Every year, it seems the Volkswagen Group announces a new and larger spend to push growth and profit, with Audi a regular recipient of the moolah. That's reasonable, seeing as hauls in 40 percent of Group operating profits. In December last year Audi said it would spend an additional 100 million euros ($122M US) per year through 2018 to develop new models and expand production, targeting 60 models by 2020 and luxury sales leadership. This month Audi said it will boost that by another two billion euros ($2.5B US) over the next five years, for a total outlay of 24 billion euros from 2014 to 2019. Something like 70 percent of those billions will be spent on new models, technology like "connectivity and lightweight construction," and factory expansion at its plants in Ingolstadt and Neckarsulm. Most of the ten models that will plump the lineup to 60 cars will mainly be aimed at the C and D segments, as well as crossovers, the brand's burgeoning portfolio of PHEV models, and all-electric cars that will begin staking ground in the segment. The big spend comes at the same time as Audi is working hard to reduce costs by $2.5 billion to maintain profitability, part of a larger push by VW to cut costs by $6.1 billion by 2017. More than a billion euros will go to new factories in Mexico and Brazil. Work begins on the Mexico plant next year, and when it comes on-line in 2016, Audi's Q5 successor will roll out of its warehouse doors; Audi has already announced it will hire 850 more workers next year in Mexico. When that's done, Mexico's production of German luxury cars will only trail that of Germany, China and the US. The company's Brazil plant will produce the A3 and S3 starting next year, and the brand figures luxury car buying there will triple by 2017. News Source: Reuters Earnings/Financials Plants/Manufacturing Audi Volkswagen Luxury Mexico Brazil ulrich hackenberg

2015 Audi Q3

There are two ways to approach a brand-new segment in the auto industry. First, an automaker can take a gamble and introduce a completely new vehicle, catering to the specific demands of the marketplace(s) in question. In the compact, premium CUV segment, we've seen Buick do this with the Encore, and Mercedes-Benz with the GLA-Class. The other option is to introduce a vehicle already sold in another market. Considering the amount of time it takes to bring a new vehicle from paper to production, there is plenty to gain in the short-term with this approach. It's not without its downsides, though, as we found after a week behind the wheel of the 2015 Audi Q3, a vehicle that was initially launched in 2011. Cute though it may be – it was referred to at least once by a passerby during our testing as "totes adorbs" – Ingolstadt's decision to introduce a vehicle that's already been on sale for four years, and is effectively approaching the last half of its lifecycle, leaves the Q3 at a significant disadvantage relative to the newer competition. Despite crossing its first auto show stage four years ago, the Q3 remains a handsome little bugger. Audi's designs, while conservative, tend to age very well, and the compact Q3 is no exception. It's like a scaled-down Q5 in most respects, although certain design pieces, like its more aggressively raked rear window and shorter front and rear overhangs, belie the significantly smaller Q3's figure. Due to its age, the Q3 was, fortunately, designed before the current A3 hit the market. That means it avoids the unattractive, minimalist dash of the A3, opting for a more traditional Audi design, with a strip of brushed aluminum on the passenger's side, a user-friendly center stack and a suitably large nav screen front and center. While the overall layout is attractive, the material quality is not what we'd expect of a newer Audi. There's nothing that feels exceedingly cheap – the plastics just feel old and too familiar. It's difficult to describe, but as soon as you climb in the Q3, things like the switchgear for the HVAC controls immediately remind you that this is a vehicle that's been on sale since 2011. While our definition of interior quality has evolved over the years, our idea of a driver-friendly cabin has not. The Q3 scores highly in this regard, featuring the elevated seating position that makes CUVs so popular with the general public.

BMW considering building 3 Series in North America

There might be even more BMWs coming from North America soon. The company recently announced plans to build a flagship crossover called the X7 at its Spartanburg, SC, factory. Now, rumors are emerging that the Bavarians might be thinking about building a second North American factory that could build its quick-selling 3 Series.
According to Bloomberg, the German luxury giant is considering several possible locations for a North American factory, including two in Mexico, that may build the 3. "We will decide this in the next months. On the North American continent, there's still potential," said BMW production boss, Harald Krueger, in an interview meant for company staff obtained by Bloomberg.
If BMW decides to open a plant in Mexico, it would be following its rival Audi, which already announced construction of a factory there. Mercedes-Benz has been rumored to be working on a deal with Nissan to build its cars South of the Border as well. Rumors of Bimmer considering Mexican production have also cropped up in the past, so it wouldn't come as a total surprise to hear it made official.