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VW and partner SAIC start building $2.5B Audi plant in China

BEIJING — Volkswagen AG's China joint venture with SAIC Motor Corp has started building a $2.5 billion new energy vehicle (NEV) plant in Shanghai, which will make VW's luxury Audi brand cars, a possible first for the venture. The new plant is a key step for Audi to diversify production of its cars in the world's largest car market from its long-standing local partner, China FAW Group Corp. This shift has been delayed amid resistance from local dealers. SAIC Volkswagen said the new plant would have an annual capacity to make 300,000 cars and begin production from 2020. Audi sold 481,387 vehicles in China from January to September this year. The announcement comes the same week Tesla secured a Shanghai location for a Gigafactory battery plant to serve the Chinese market. Audi unveiled the plan to bolster ties with SAIC in late 2016. Earlier this year, the Germany luxury carmaker bought a 1 percent stake in the SAIC Volkswagen venture, paving the way for the joint venture to produce and sell Audi cars. Volkswagen currently gets a larger proportion of the proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. SAIC Volkswagen said in a statement on Friday the plant would cost 17 billion yuan ($2.5 billion) and would make VW and Skoda models as well as Audi cars. It will help VW tap China's fast-growing market for NEVs, a category comprising electric battery cars and plug-in electric hybrid vehicles. ($1 = 6.9314 Chinese yuan renminbi) Reporting by Yilei Sun and Adam JourdanRelated Video: Image Credit: Reuters Green Plants/Manufacturing Audi Volkswagen Skoda Electric Hybrid

VW recalling 2.64M vehicles worldwide over engine, light issues

Volkswagen is staging a massive, worldwide recall that's already grown from 1.68 million to 2.64 million vehicles and covers three different issues across a number of vehicles. We already reported on 61,000 Tiguans getting recalled over lighting issues - that was just in the US. Globally, however, VW will be recalling 800,000 Tiguans, according to Automotive News, with the focus on CUVs built between 2008 and 2011. The issue with the Tiguan relates to a simple fuse swap, so this is rather unremarkable, aside from the sheer number of vehicles being fixed. The real, troubling issues relate to gearboxes and pickups.
239,000 Amarok pickups (pictured right) are being recalled over fuel leaks, while 1.6 million vehicles are being recalled to swap the synthetic oil in dual-clutch transmissions with mineral oil. Now, the transmission issue is one for the global Volkswagen Group to address, not just the VW brand - vehicles from Audi, Škoda and Seat use the same seven-speed DSG and are covered under the recall, as well.
Why the switch from synthetic to mineral oil? Apparently, using the synthetic oil in a DSG and then subjecting it to stop-and-go conditions or heavy loads in a hot and humid climate can lead to electronic malfunctions, according to a Volkswagen press release. The switch, from the sounds of it, is largely a preventative measure.

Recharge Wrap-up: Zero takes electric motorcycles to cop expos, Chevy Volt powers dealership's Internet

Zero Motorcycles will be at three law enforcement conferences this month, including COPSWEST Training and Expo, Los Angeles County Sheriff's Department Law Enforcement Vehicle Test and Emergency Vehicle Product Expo and International Association of Chiefs of Police Expo. Zero will display its recently debuted 2015 line of electric motorcycles at the events including the new FXP, a police-duty version of it FX "Stealthfighter." Zero also offers the MMX, SP and DSP for police and military use. Learn more about the events in the press release below. Volkswagen Group CEO Martin Winterkorn told European regulators that more stringent emissions standards too soon will be a major problem for automakers. He says that such moves could prove "fatal" for an auto industry that is still working to develop cleaner vehicles. "Every gram of CO2 that we save in our European fleet costs our group almost 100 million euros," says Winterkorn, "100 million that we have to invest in advance, without knowing when these investments pay off." He says that already creating emissions targets beyond those set for 2020 could harm European automakers competing globally. Read more at Automotive News Europe. When a Detroit Chevrolet dealership lost its Internet connection, it turned to one of its Chevy Volts for a temporary fix. After the regular connection at Buff Whelan Chevrolet went down, it plugged in a Volt showroom model equipped with 4G LTE, and used its connection to resume business. The car can handle up to seven connected devices, so the team used a Malibu to connect the rest of its computers. When a customer asked why the Volt was on, the team explained the whole situation, leading to one impressed customer. Read more at Automotive News. Zero Motorcycles To Attend Law Enforcement Conferences 2015 Police and Authority Motorcycles to Appear at IACP SANTA CRUZ, Calif., Oct. 2, 2014 /PRNewswire/ -- Zero Motorcycles, the global leader in the electric motorcycle industry, announced today that it is attending three leading law enforcement conferences in October: - COPSWEST Training and Expo. October 6-9, 2014. Long Beach, California. - Los Angeles County Sheriff's Department Law Enforcement Vehicle Test and Emergency Vehicle Product Expo. October 16, 2014. Fontana, California. - IACP Conference and Expo. October 25-28, 2014. Orlando, Florida. "These events provide a great opportunity to present our patrol motorcycles and accessories.