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Felicity Ace sinks with thousands of VWs, Porsches, Lamborghinis

The stricken ship Felicity Ace sank overnight after a week of salvage efforts ultimately proved unsuccessful. The ship, which was carrying up to 4,000 VW Group cars, went to the bottom unexpectedly while a salvage team was attempting to tow it to shore, Bloomberg reports.  "Initial reports from the local salvage team state that the vessel had sunk at around 9AM local time having suffered a list to starboard," Mitsui O.S.K. Lines transportation company (MOL), which owns the Felicity Ace, said in a statement released early Tuesday.    "The last vessel position was around 220nm off the Azores," MOL said. "The salvage crafts will remain around the area to monitor the situation. Further information will be provided as it becomes available." The ship sank after being battered by waves and listing 45 degrees to starboard, the ship’s operator said. “The weather was pretty rough out there,” Pat Adamson, a spokesperson for MOL Ship Management (Singapore), a unit of Mitsui OSK Lines Ltd., said by phone. “And then she sank, which was a surprise.” VW, Porsche, Audi, Bentley and Lamborghini-branded models were aboard the ship, which was headed to Rhode Island from GermanyÂ’s Emden port when the fire broke out on Feb. 16.  Rough seas and ongoing fires fueled by the lithium-ion batteries of EVs onboard delayed the ship's salvage and recovery operations for the better part of a week. While the likelihood of salvaging the smoke and potentially fire- and water-damaged vehicles from Felicity Ace's hold was slim to none, some had held out hope that their special-ordered vehicles might survive the mishap.  The Panama-flagged Felicity Ace was safely evacuated of its 22 crew members by the Portuguese navy after a fire started in its hold more than a week ago. The ship can carry up to 4,000 cars. European carmakers declined to discuss how many vehicles and what models were on board, but it appears to have been transporting approximately 2,500 cars, including roughly 1,100 Porsches and an undetermined number of Volkswagens.  The cars aboard were on order. Porsche customers in the United States were being contacted by their dealers, the company said. “We are already working to replace every car affected by this incident and the first new cars will be built soon,” Angus Fitton, vice president of PR at Porsche Cars North America, Inc., told The Associated Press in an email. The ship sank in water nearly 10,000 feet deep, the Portuguese Navy said.

Audi pins hopes on 2016 R18 Le Mans prototype

Down but not out, Audi is carrying forward its endurance racing program with the new R18 you see here. Unveiled on Saturday at the Audi Sport Finale end-of-season event in Munich, the new LMP1 is billed as the company's its most powerful and efficient race car yet. And it has been thoroughly redesigned to bring the Four Ring brand back to the winner's circle. Though technical details remain a closely guarded secret, Audi says that the latest evolution of the R18 (now apparently labeled sans the E-Tron Quattro) benefits from revised aero, lightweight construction, and "a modified hybrid system with lithium-ion batteries for energy storage, plus an efficiency-optimized TDI engine." That spells the end of the mechanical fly-wheel setup of the previous version, but sticks to the diesel fuel that Audi has championed instead of the gasoline favored by rivals Porsche and Toyota. With all its revisions, Ingolstadt undoubtedly hopes this latest version will perform better than the last. This past season was the worst Audi has endured since 2009. Its sister company Porsche beat it to both the drivers' and manufacturers' titles in the FIA World Endurance Championship and to the winner's circle at the 24 Hours of Le Mans. That marked the second straight year of defeat in the championship, following Toyota's domination last season, and marked only the third time Audi was defeated at Le Mans since 2000, following Bentley's win in '03 and Peugeot's in '09. In order to avoid costly inter-agency arms race, Audi and Porsche have agreed to each field two entries instead of three in both the championship and the headline race in Western France. Audi has yet to confirm its driver lineup, but Porsche has revealed its lineup consisting of defending champions Timo Bernhard, Brendon Hartley, and Mark Webber in one car, and Romain Dumas, Neel Jani, and Marc Lieb in the other. That leaves out the Le Mans-winning trio of Nico Hulkenberg, Nick Tandy, and Earl Bamber, with the former already counted out due to an F1 conflict. More powerful and efficient than ever before: Audi R18 celebrates world premiere in Munich - New hybrid race car for the 2016 Le Mans 24 Hours - Unchanged driver line-up in the DTM - High demand for new Audi R8 LMS GT3 sports car The brand with the four rings will be entering the 2016 motorsport season with the most powerful and efficient race car Audi has ever built.

China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.