Auto blog

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

Rimac inks deal to purchase 55% of Bugatti from VW Group

ZAGREB, Croatia — Croatian electric supercar builder Rimac is taking over the iconic French manufacturer Bugatti in a deal that is reported to be worth millions of euros. Rimac said GermanyÂ’s Volkswagen Group, including the Porsche division — which owns a majority stake in Bugatti — plans to create a new joint venture. The new company will be called Bugatti-Rimac. Rimac Automobili announced Monday that it will be combining forces with Bugatti to “create a new automotive and technological powerhouse.” Rimac has progressed in 10 years from a one-man garage startup to a successful company that produces electric supercars. Mate Rimac, who founded the company in 2009, says the venture is an “exciting moment” and calls the combination of the companies “a perfect match for each other.” Porsche will own 45% of Bugatti-Rimac while Rimac Automobili will hold the remaining 55% stake, according to Croatian media reports. Financial details of the deal were not published. Bugattis will continue to be assembled in eastern France, where the company was established in 1909. The vehicles will use engines developed and made in Croatia. “In an industry evolving at ever-increasing speed, flexibility, innovation and sustainability remain at the very core of RimacÂ’s operations," the company said. “Uniting RimacÂ’s technical expertise and lean operations with BugattiÂ’s 110-year heritage of design and engineering prowess represents a fusion of leading automotive minds." Earnings/Financials Green Bugatti Automakers Porsche Volkswagen Green Automakers Electric Supercars

eBay Find of the Day: Unrestored Herbie Love Bug movie car

Well before Cars ever hit the screens, The Love Bug series of Disney films – starring Herbie the VW Beetle with a mind of its own – was an early introduction to cars and racing for many budding auto fans. Not the modern remake starring Lindsay Lohan mind you, but the originals from the '60s and '70s. Now, a seller in Texas claims to be offering a chance to own one of the Bugs from the films on eBay Motors. According to the auction, this Beetle didn't appear in the original film but was built for the sequel Herbie Rides Again in 1972 and also appeared in the third installment Herbie Goes to Monte Carlo. This VW was prepared as the blind-drive car for the movies that attached a low-mounted chair in the back and extended controls to let Herbie look like he was driving himself. Although, some of the photos here show the Bug with regular seats fitted, too. This Herbie was reportedly found in a Florida warehouse a few years ago. It was then made operable, while trying to keep it as original as possible. The exterior underwent a slight restoration with input from former Disney special effects staff, according to the seller. The changes added new graphics and rebuilt the blind drive setup. Judging by these pictures, the rest of the interior was left mostly untouched, though. Of course, anyone interested in buying a movie car is going to want proof of its authenticity. The seller claims to have the original California title showing the buyer as Disney in 1972. The Bug also reportedly has a unique rear decklid that mixes early and later parts to help identify it in the film. As of this writing, bidding for Herbie sits at $55,100 with 82 bids and a reserve not yet met. The sale closes on Saturday, December 13.