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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.

Audi design getting big overhaul?

Car and Driver has an update on the design shuffle in Ingolstadt that will ultimately bring more differentiation to Audi products. Last November, Audi design chief Wolfgang Egger spoke of the need to do "something new without breaking from tradition" in Audi design, but talk at the time centered on how the Crosslane Coupe Concept would influence the new looks of the brand's Q cars. The most recent moves appear focused on passenger cars, with designers from Volkswagen Group kin like Bentley and Seat moving to Audi, and outsiders from Alfa Romeo moving in.
While Egger decreed the end of "scalable design" to CD, last November's report said there would be more technology and "greater visual cohesion" between interior and exterior design. We still have no idea what all this means nor when we'll see visible changes in production, but at least we know there's something being done behind the scenes.

2014 Audi A6, A7 and Q5 TDI diesel models get pricing and fuel economy figures [w/videos]

Last year, Audi announced that it was expanding its lineup of TDI models for 2014 with the Q5, A6 and A7 joining the diesel-burning Q7 and A8 L models already in existence. The Q7 TDI has been out for a few years now and we recently drove the A8 L TDI, but now Audi has released the pricing, performance and fuel economy details for the 2014 Q5 TDI, A6 TDI and the ever-stylish A7 TDI. Down the road, Audi has also promised a TDI version of the next-generation A3 that will debut for 2014.
Until the new A3 TDI shows up, the Q5 will be the most affordable diesel model in Audi's lineup, with a starting price of $46,500 to go with fuel economy estimates of 24 mpg city and 31 mpg highway. The closely related A6 and A7 will get identical fuel economy numbers of 24 city and 38 highway in diesel form, with the A6 TDI starting at $57,500 and the A7 TDI starting at $66,900. In the three new TDI applications, Audi's 3.0-liter V6 produces 240 horsepower and 428 pound-feet of torque, and all models are paired with an eight-speed automatic transmission. Scroll down for videos (stock running footage) and more information on the Q5 TDI, A6 TDI and A7 TDI, all of which go on sale in late summer.