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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.

2015 Volkswagen e-Golf

Until now, the only way you could get the words "electric" and "Golf" so close together was the put the word "cart" after them. Knowing that the e-Golf would be the next step in Volkswagen's tilt at electrification, the automaker designed the MkVII platform to fit a myriad of drivetrains, none of which would require purchasers to sacrifice the Golf-ness that makes the best-selling car in Europe, not to mention a huge hit here in the States. In the e-Golf that means power electronics underhood and an amoeba-shaped battery that fits in the floorpan, between the axles, where it won't ooze into the interior space. We look at the e-Golf as another kind of crossover: traditional cars that just happen to be electric, offering a taste of the new EV religion in soothing, recognizable garb. We had one for a week in its natural habitat, Los Angeles and the surrounding area. We really like the fact that, powertrain aside, it maintains everything we dig about the Golf. The caveat is that this is an EV first and a Golf second – you must first address the EV challenges and live within EV constraints, then you can enjoy the Golf bits. Even so, it's the electric car this writer would buy once we acquired the lifestyle to make proper use of it. The most noticeable exterior change to the e-Golf are 16-inch Astana wheels wrapped in 205-series tires that reduce rolling resistance by ten percent. Once you've cottoned on to that, the other alterations become apparent: the blue trim strip underlining the radiator grille, the redesigned bumper with the C-shaped decoration LED lights and the full-LED headlamps above them, the little blue "e" in the model name on the rear hatch. You won't notice the underbody paneling, that the frontal area of the e-Golf is ten percent smaller than that of a traditional Golf, that the radiator is closed off, or the reshaped rear spoiler and vanes on the C-pillars. Volkswagen says this results in a ten-percent drop in drag, getting the coefficient down to 0.281, but the standard Golf is also listed at 0.28. The TSI and TDI are 0.29. No matter those numbers, the point is the e-Golf looks just like... a Golf. The 12,000-rpm, 85-kW electric motor equates to 115 horsepower and 199 pound-feet of torque, which compares to 146 hp and 236 lb-ft from the 2.0-liter diesel Golf. It takes 4.2 seconds to get to 37 miles per hour, 10.4 seconds to hit 62 mph, and the little guy tops out at 87 mph.

VW's Skoda says Ukraine partner making wire harnesses again

PRAGUE — Skoda Auto, part of the Volkswagen Group, said on Tuesday its supply partner in Ukraine had decided to restart production of wire harnesses which should allow the Czech carmaker to resume production of its electric ENYAQ iV model. Russia's invasion of Ukraine has added to supply chain problems for global automakers — which were already struggling with semiconductor shortages that have cut production — with a break in deliveries of wire harnesses from the war-torn country. While Skoda, the Czech Republic's biggest exporter, said it expects the supply of semiconductors to improve in the second half of 2022, it said the war in Ukraine and supply bottlenecks will put a significant burden on its operating business. Skoda's 2021 deliveries fell 12.6% year-on-year and earlier this month it stopped production of the ENYAQ because of harness shortages, saying that two other models were at risk because of the lack of availability of the component. "Our partner ... in Ukraine decided to restart production of wire harnesses this week, with full service and full security for workers there," Karsten Schnake, Skoda's board member for purchasing, said during its online 2021 earnings presentation. Wire harnesses form a key part of a car's electrical system, which group and guide cables inside the vehicle. "We decided to double the production in case something is going wrong, and this production will be ramped up in an alternative factory," Schnake said, adding that work there would start in three or four weeks. "Hopefully we can restart production of ENYAQ one or two weeks later when we have wire harnesses," Schnake said. Skoda delivered 878,200 cars worldwide in 2021, the first time that this had fallen below the 1 million mark since 2013. Nevertheless, the VW group brand's sales revenue rose 3.9% to 17.7 billion euros ($19.5 billion) in 2021 and operating profit rose 43.2% to 1.1 billion euros ($1 billion) as it took cost measures. Skoda did not give a financial or production outlook, saying there were still considerable uncertainties as a result of the conflict in Ukraine and the impact on its Russian operations. Skoda, like VW, has suspended production and other business activities in Russia, which was its second-largest market last year, with 90,400 vehicles delivered. ($1 = 0.9089 euros) (Reporting by Jason Hovet, Editing by Louise Heavens, Kirsten Donovan and Alexander Smith) Related video: Green Plants/Manufacturing Volkswagen Skoda Electric ukraine war