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Audi to spend $17 billion to fight BMW

It's no secret that VW Group, parent company to not only Volkswagen but also Audi, Bugatti, Bentley, Lamborghini, Porsche and Ducati brands sold in the US, is determined to become the world's largest automaker. Even more impressive is that VW is prepared to spend billions to make it happen.
With that comes word that VW Group will be spending $17 billion on its Audi brand over the next three years to push itself above rival BMW. The money will be invested in both vehicle development (including lightweight auto design and alternative powertrains) and facilities (including expansion in Hungary, China and new operations in Mexico). The luxury brand is focused on global manufacturing infrastructure.
Already Europe's best-selling luxury brand, Audi's objective is to overtake BMW by the end of the decade by selling more than two million cars per year (BMW is shooting for 1.54 million sales in 2013). If those objectives are met, VW Group should be on track to be the industry's volume leader by 2018.

New Audi Quattro concept coming to Frankfurt?

We first saw the Audi Quattro Concept at the 2010 Paris Motor Show, and since then we've been tugged this way and that by a series of rumors as to whether the car will be built or not, and whether such a car will live at the accessible or the exalted end of the cost spectrum. A report in Germany's Auto Zeitung from June restarted the fires of gossip with a report that a production version of the concept will appear at the Frankfurt Motor Show, and put it firmly in the exalted sphere.
Now, just a month from the show, Auto Bild has a similar report, sketching out an upmarket car but on a different platform. Back when we drove it, the Quattro concept was built on a spaceframe based on the RS5 platform and got its go from a 2.5-liter five-cylinder engine with 380 horsepower and 354 pound-feet of torque (the show car got 408 hp from a turbocharged five-cylinder). The June report from Auto Zeitung said this new reveal would be powered by a modified version of the twin-turbo 4.0-liter V8 from the RS7 that would put out something like 650 hp. Auto Bild, on the other hand, reports that the engine will be tuned to something like 600 hp and the new concept will ride on an "enhanced" version of the A6 platform.
Both reports agree that the car we'll see will preview Audi's new design language with "tauter, more angular lines." Lightweight and exotic materials will be used in efforts to reach a supposed target weight of 1,200 kilograms (2,640 pounds), down from a target of 2,900 pounds in earlier report. Auto Bild says that Audi still hasn't decided whether to make a production version, but if they are correct about the direction of the concept, any retail offering based on it isn't going to be cheap.

'Worldwide, every third Audi will be an SUV by 2020'

Automotive News Europe reports the new Audi manufacturing facility in San Jose Chiapa, Mexico will increase the automaker's production capacity for the Q5 SUV by 150,000 units per year. While the plant will supply every market with the exception of China, most of the production is slated to head to the US.
While speaking with ANE, Audi CEO Rupert Stradler said, "Worldwide, every third Audi will be an SUV by 2020." So far this year, 40 percent of Audi vehicles sold in the US have been light trucks, with the company's sales in that segment jumping by 53 percent. By comparison, Audi passenger car sales have increased by just one percent.
The first Q5 vehicles from the San Hose Chiapa plant will show up on dealer lots in 2016. Audi of America recently received a larger 9,000-unit allocation of Q5 models after seeing sales increase 36 percent through April compared to the same period in 2012.