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Audi investing $30.3 billion through 2018 for product expansion

How does Audi plan to reach two million units in annual sales and pay for the 11 new models it's adding to its lineup - an expansion that may include models named SQ2, Q9 and F-Tron? By increasing its investment to 22 billion euros ($30.3 billion US) between now and 2018. That figure represents an increase of about 500 million euros over the previously planned outlay, according to a report by Automotive News, and that could be due to Audi wishing to goad the momentum that pushed it to 1.5 million annual sales two years ahead of schedule.
It's also about staving off the challenges from BMW and Mercedes-Benz. Now that BMW has been able to turn some of its attention away from its "i" series of Megacity cars, it will reportedly spend more than planned in 2014 as it continues the rollout of ten all-new vehicles and 15 new-generation vehicles through the end of next year. Mercedes, having been dropped to third in the sales race, is preparing to add 13 new cars over the next six years.
Audi's money is going into technology, into product like the next-generation TT and the Q1 and production expansions and upgrades all over the world. The expenditure represents just under a fourth of Volkswagen's 84.2 billion-euro ($115.7 US) outlay devoted to taking the number-one global automaker title away from General Motors and Toyota by 2018.

2016 BMW 7 Series slims down, techs up

BMW is finally pulling the wraps off its sixth-generation 7 Series. The flagship boasts a ton of improvements for 2016, including a smattering of onboard tech and weight reduction of 190 pounds. The 7 Series uses a new internal structure called Carbon Core. Derived from the i sub-brand, Carbon Core uses a mix of carbon-fiber-reinforced plastic and ultra-high-tensile steel for the 7's major structural components. It's largely responsible for the 190-pound weight reduction, along with the aluminum doors and trunk lid. The weight savings has allowed BMW to maintain a fifty-fifty weight distribution. That new structure underpins the largest sedan BMW has ever produced. At 206.6 inches in total, the long-wheelbase-only 7 Series is over an inch longer than its predecessor. Its 124.6-inch wheelbase and 74.9-inch width, though, remain unchanged. Even with such a modest increase in size, BMW is claiming best-in-class rear legroom, at 44.4 inches – a tenth of an inch more than the current 7. Unlike the old car, though, this new 7 Series gets with the times in terms of chauffeur equipment. The front passenger seat can be slid forward and folded, allowing a lucky rear passenger to take advantage of the new pop-out footrest and optional 42.5-degree seat incline, available as part of the Rear Executive Lounge Seating Package. iDrive now adds a number of 3D sensors that respond to pre-programed hand motions. The 7 Series will debut here in the United States with two engines, both of which should be familiar to BMW consumers. There's a 320-horsepower, 3.0-liter, turbocharged six-cylinder in the nose of the 740i, and a 4.4-liter, twin-turbocharged V8 with 445 hp on tap in the 750i xDrive. 60 miles per hour arrives in a relaxed 5.4 seconds for the 740i and 4.3 seconds in the V8 model. Once again, ZF provides the eight-speed automatic transmission used with both engines. Joining the 740i and 750i is the new 740e xDrive. The plug-in-hybrid sedan is motivated by a 2.0-liter, turbocharged four-cylinder and an electric motor, and is capable of 23 miles per charge and speeds of up to 75 miles per hour in pure electric mode. Tthere's no shortage of tech on the latest 7 Series. While we're familiar with some items, like active grille shutters and BMW's Air Breather system, it's items like the gesture-control-equipped iDrive 5.0 that pique our interest. Alongside the new and standard touchscreen, iDrive now adds a number of 3D sensors that respond to pre-programed hand motions.

British automakers take costly precautions as Brexit 'no deal' fears grow

LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.