1974 Volkswagen Thing on 2040-cars

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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

Take a listen to the Volkswagen ID 3 and Koenigsegg Jesko

What could better demonstrate our diametric vehicular future than sound clips of the Volkswagen ID 3 and the Koenigsegg Jesko? Battery-electric vehicles don't make enough noise on their own, so VW partnered with composer Leslie Mandoki for the legally-mandated Acoustic Vehicle Alerting System (AVAS) that warns pedestrians and cyclists of the EV's presence. Mandoki — a German-Hungarian who once played drums in a Euro disco band called Dschinghis Khan — was asked to come up with a sound for the ID 3 that VW said "defines its identity," "radiates safety and the promise of effortless mobility," and that "must also impress with its unique character." The definition of the ID 3's single-motor, 201-horsepower character is this: Occupants and people around the hatch can hear the sound as the car accelerates to 18.6 mph, and when reversing. At higher speeds, the sound of wind resistance and tire noise takes over. As our library of AVAS tones grows, it's clear that EVs will provide a soundscape as varied as that of internal combustion engines. Here, for instance, is the industrial thrum used as the Karma Revero GT's pedestrian warning: And here is the sci-fi soaring from the BMW Vision M Next, as composed by Hans Zimmer: At the other end of the aural chamber, we have the Koenigsegg Jesko. In this case, the composer is a 5.0-liter twin-turbo V8 running on a bio-ethanol E85 blend that's almost suitable for IndyCar, powering the engine up to 1,600 horsepower. Output on pump gas will be 'only' 1,281 hp. The Swedish automaker released a clip of the exhaust note of a car in progress inside the Angelhom factory. Here's what we can look forward to: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. All these sounds have a place at the table, even if we'd prefer Karma booked some time with a producer and an Autotune session. To paraphrase Sesame Street, though, one of these sounds is definitely not like the other.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico