VAG engines to power possible IRL chassis

As VW said almost 2 years ago they are still looking into entering engines to the IRL along with Audi, Porsche, FIAT, AlfaRomeo, Nissan, which Honda has dominated since Chevrolets departure almost 8 years ago.

Small Snippet: Motorsport.com

1.75 Billion-Euro Porsche Loan Denied by Germany

Germany’s government is unlikely to support Porsche's renewed request for 1.75 billion euros ($2.4 billion) in loans and canceled a review of the application, two people familiar with the situation said.

The Federal Economy Ministry called off a meeting of an eight-person advisory committee scheduled for tomorrow in Berlin to discuss Porsche’s request to state-owned development bank KfW Group, according to the people, who asked not to be identified because the session is private. German officials no longer see the need for a review after KfW rejected the loan request last week, the people said.

The decision increases pressure on Porsche to reach an agreement with Qatar on selling a stake in the Stuttgart-based carmaker or some VW stock options it owns to the Persian Gulf state to reduce 9 billion euros in debt. Porsche, which tripled its debt after boosting its stake in VW earlier this year, doesn’t have the money to exercise the options for an additional 20 percent of VW shares.

“We continue to believe that the loan request provides a basis for a decision” by the German government, Frank Scholtys a spokesman for Porsche, said today by telephone. “We’re still in talks with KfW.”

Porsche said on June 22 that it would make a second approach for government loans.

Source:Bloomberg

Audi speeds past rivals in mainland elite fleet deal

While BMW is likely to walk away empty-handed from China's lucrative government car procurement market this year, its German peer Audi has been dominating the market for a long time.

The Procurement Center of the Central People's Government (PCCG) said last Thursday that it has no plan to buy BMW cars this year.

In contrast, government procurement contributes about 20 percent to Audi's total sales in China, according to Zhang Xiaojun, deputy managing director of Audi China's Sales Division.

In 2008, Audi sold 119,598 sedans in China, a 17 percent increase year-on-year. China is now Audi's second biggest market in the world, only behind Germany.

The money Audi has made from Chinese government procurements and its avoidance of major public controversies should be the envy of other German luxury car competitors.

The image of an "official car" has helped Audi beat BMW and Mercedes-Benz, two other German brands which are also eligible for government procurement in China, the only market where Audi leads in luxury sedan sales.

"Government procurement has a direct influence over vehicle consumption of ordinary people. If a customer sees a model that is the same as the governor's, he will probably take it into first consideration. That's a big reason why foreign automakers pay so much attention to government market," said Hu Xiaowu, professor, School of Social and Behavioral Sciences, Nanjing University.

Compared to Malaysia, India, Japan and other countries that strictly require officials to use homemade cars, it is common for Chinese officials to favor foreign luxury cars.

"The higher the level of government, the higher the request for luxury. If the price of two cars is the same, officials always prefer the foreign brand," said Chen Min from Geely, a domestic automaker in China. Chen is responsible for government procurement of the company.

In 2005, Audi launched a new, prolonged sedan model A6L in China and it is now the most popular model among Chinese officials.

BMW got enrolled by PCCG only now.

"BMW cars have been involved in several traffic accidents in recent years and its reputation is not good among ordinary Chinese people. Besides, the central government calls for priority to domestic brands in the 4-trillion-yuan stimulus package. The news thus raises public dissatisfaction," said Hu.

Absence of domestic competitors is also a reason for the success of foreign automakers like Audi in Chinese government procurement market.

According to the standard set in 1999, sedans for officials at the minister and province governor level should be within 450,000 yuan with engine size less than 3.0 liter; vice-minister and vice-governor level within 350,000 yuan less than 3.0 liter; officials at other levels within 250,000 yuan less than 2.0 liter.

The price of Audi A6 and A6L sedans is around 300,000 to 700,000 yuan with engine size around 2.0 and 3.0 liter, which mostly covers the price and engine limit, while the highest price of domestic cars like Geely and Chery is about 100,000 yuan with engine size around 1.6 liter, much lower than the lowest limit.

"Our products are not high-end enough, which restricts the level of our target market. Our products can only sell to low level government officials at present," Chen said.

According to Chen, although vehicles of Geely were enrolled by PCCG in 2008, not a single car has been sold to the central government till now.

Source:China Daily

Audi TDI to reduce carbon emissions with The Nature Conservancy

Audi has committed to supporting The Nature Conservancy to help reduce carbon emissions as part of its public awareness campaign for Audi TDI clean diesel engines, which reduce carbon emissions by 20% over gasoline. Audi will donate $1 to The Nature Conservancy’s voluntary carbon offset program for every Facebook user who joins the cause at www.causes.com/natureconservancy, up to $25,000.

The donation will directly benefit The Nature Conservancy voluntary carbon offset program, which features the Tensas River Basin as its first project. The Tensas River Basin Project counterbalances carbon emissions by reforesting private lands to capture and store carbon, as well as to restore critical habitats to native species. Located in the Lower Mississippi Valley, the project will help to buy land, plant trees and to monitor the carbon benefits of these actions. Currently focused in the United States, The Nature Conservancy voluntary carbon offset program may soon expand to more places globally.

"Reducing carbon emissions through protecting and restoring forests plays a critical role in fighting climate change," said Zoe Kant of The Nature Conservancy. "Audi’s contribution will provide necessary support to our voluntary carbon offset program’s reforestation and forest protection projects, but it will also help us to bring the benefits of the project to a new audience of supporters."

The Nature Conservancy’s goal of reducing carbon emissions aligns with broader Audi objectives. The recently introduced Audi TDI clean diesel engine reduces carbon emissions by 20% over gasoline and is 30% more fuel-efficient. The Audi donation to The Nature Conservancy augments a broad public awareness campaign in the U.S. to highlight the ways in which TDI clean diesel can help America reduce carbon emissions and achieve energy independence.

"Our engineers are always innovating to reduce our vehicles’ carbon emissions, and we’ve taken a giant leap forward with the introduction of the Audi Q7 TDI clean diesel this year," said Johan de Nysschen, President, Audi of America. "But our commitment doesn’t stop with our products; we want to promote reduced emissions through support of organizations like The Nature Conservancy, and also to spread the word about the benefits of reduced emissions."


To join the Cause and trigger a $1 donation to The Nature Conservancy, courtesy of Audi, visit www.causes.com/natureconservancy.

Source:Audi Press Release

Audi Promotes Diesel "Right Now" Over Hybrids to Save Oil

Audi began a U.S. ad campaign this week focused on the viability of diesel autos versus gasoline-electric hybrids and those that run on batteries. A diesel Q7 sport-utility vehicle went on sale six weeks ago, and a diesel A3 wagon is due late this year.

“We’re not saying these technologies are nonsense,” Johan de Nysschen, president of Audi of America Inc., said yesterday in a telephone interview. “For us the appeal of the clean diesel technology is that it is here right now.”

Volkswagen and Audi have emphasized diesel engines, which power 50 percent of European cars, rather than the focus on electricity favored by U.S. and Japanese automakers. President Barack Obama’s administration seems to back electric autos over diesels, said de Nysschen, who is based in Herndon, Virginia.

One ad among Audi’s television and Internet spots shows barrels rolling through streets and onto a supertanker, saying that if a third of Americans drove diesel autos, daily imported- oil use would fall by 1.5 million barrels. Diesel engines are as much as 30 percent more efficient than gasoline models.

Diesel vehicles now account for about 3 percent of sales in the U.S., according to research firm J.D. Power & Associates of Westlake Village, California. Hybrids have a similar market share, J.D. Power estimates. Audi expects diesels to be 15 percent of all U.S. deliveries in 15 years.

Smell, Power

Rising fuel prices in the late 1970s and 1980s spurred automakers including General Motors Corp. and Wolfsburg, Germany-based Volkswagen to sell diesels. Buyers didn’t like the cars’ smell, lack of power and difficult cold-weather starts.

Newer diesel engines feature better performance and fewer odors. Stuttgart, Germany-based Daimler AG renewed the push for diesel vehicles in the U.S. two years ago with three diesel SUVs from Mercedes-Benz.

In 2008, Volkswagen resumed sales of its Jetta TDI after a one-year hiatus, while Munich-based Bayerische Motoren Werke AG offered BMW 335 sedans and X5 diesel SUVs.

De Nysschen said competition among the companies thwarted efforts to jointly market the advantages of diesels over gasoline-powered autos.

“If the automakers had any sense, we would collaborate and do this together,” de Nysschen said.

U.S. buyers of the diesels offered by all of the German automakers qualify for tax credits of as much as $1,800 for fuel-efficient vehicles.

Audi has outperformed most automakers in the U.S. in 2009, with sales down only 18 percent to 36,820 units through May compared with a 37 percent industrywide decline. The company’s market share rose by a third, to 0.8 percent, according to research firm Autodata Corp. of Woodcliff Lake, New Jersey.

Source:Bloomberg

End of an Era....Peugeot defeats Audi with 1-2 Finish...

Audi it seems was plagued by Wrecks, Suspension troubles, and Engine faults. Audi has proved to be a Pioneer since 1998 with the announcement of a LMP entry and it has taken 2 Teams to beat them, their own Audi Factory backed Bentley Team & Peugeot. Congratulations to the Total Peugeot Teams for a well deserved Victory.

Truth in 24 Trailer

This is available for D/L from iTunes

Audi Inks deal with Sanyo for lithium-ion battery packs

On the heels of the VW announcement that feasible electric cars are years away, Audi's CEO Rupert Stadler confirms that they too believe EVs are years away from becoming affordable, mainstream vehicles.

Last week, Audi held an annual meeting in Germany. They discussed future product plans and spoke about alternative energy vehicle coming from the company in the next few years. What Audi did confirm is that their first hybrid the Q5 SUV is coming to market, but Stadler only stated to expect it in the "near future".

Audi has been on and off in regards to there hybrid program. The Q5 hybrid was originally slated for production in late 2010, but now that may have changed as Audi will no longer confirm the date.

The company is not counting EVs out. They recently signed a collaboration deal with battery maker Sanyo and are reportedly working towards a possible EV. But with the company stating that EV profitability could be a decade away, we don't expect Audi or VW to bring one to market in the "near future", our best guess is sometime in the "far future".

Source: Audi Press Release

“War has erupted again between Volkswagen and Porsche”

Volkswagen AG, Europe’s largest automaker, called off talks with Porsche SE about a combination less than two weeks after the sports-car manufacturer’s controlling families agreed to pursue a merger.

“There is currently no atmosphere for constructive talks,” Christine Ritz, a spokeswoman at Volkswagen, said yesterday in a telephone interview. In a statement, Porsche said that while a meeting scheduled for today had been canceled, negotiations will resume. It didn’t give details.

The Porsche and Piech families, which together control half of Porsche, agreed May 6 to create an “integrated” carmaker that would put Porsche alongside VW brands including Skoda and Audi. Within a week, VW Supervisory Board Chairman Ferdinand Piech said that Stuttgart, Germany-based Porsche must first trim its 9 billion euros ($12 billion) in net debt before a merger, and that Chief Executive Officer Wendelin Wiedeking and Chief Financial Officer Holger Haerter were partly responsible.

“War has erupted again between Volkswagen and Porsche,” said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen. Dudenhoeffer was head of marketing strategy and research at Porsche from 1987 to 1990. “Piech is behind that.”

Porsche owns about 51 percent of Wolfsburg, Germany-based Volkswagen, whose automotive division had 10.7 billion euros in net cash as of March 31. The maker of the 911 sports car had been accumulating Volkswagen shares since 2005 to protect ties to its largest supplier.

First Strike

Porsche Supervisory Board Chairman Wolfgang Porsche was struggling to raise financing to boost the stake to 75 percent and had been at loggerheads with Piech about how to unite the carmakers. The May 6 agreement between the families effectively put on hold Porsche’s plan to further bolster its stake in Volkswagen by acquiring VW shares.

The Porsche family is upset over Piech’s remarks and is concerned that they may hurt the value of the carmaker, Der Spiegel said on its Web site. When asked whether Volkswagen would pay 11 billion euros for Porsche AG, the operating unit of Porsche SE, Piech said that amount is “definitely a few billion too high,” according to the magazine.

Porsche workers will hold their first-ever strike today to protest the merger plan, Focus magazine reported. On May 7, a day after the initial pact, Porsche fell the most in at least 13 years on the Frankfurt exchange.

The stock has fallen 21 percent this year, cutting Porsche’s market value to 7.2 billion euros. Volkswagen has declined 12 percent, valuing the carmaker at 69.6 billion euros.

Blocking Minority

“It’s completely open when talks can continue,” VW’s Ritz said. “We are under no time pressure at all.”

Porsche spokesman Albrecht Bamler said the situation may become clearer tomorrow. He declined to elaborate.

The 72-year-old Piech is a grandson of Ferdinand Porsche, who founded the sports-car manufacturer and was Volkswagen’s first leader when the carmaker was set up under Adolf Hitler’s Nazi regime in the 1930s. In addition to leading the supervisory board at Volkswagen, where he was CEO for nine years until becoming chairman in 2002, Piech is a member of Porsche’s board.

Any agreement between Porsche and VW will require approval by Volkswagen’s home state of Lower Saxony, which has a right to veto decisions through its 20 percent stake in VW. The automakers, worker representatives and Lower Saxony officials will decide on the new group’s structure over a four-week period, Porsche SE said May 8.

“Piech wants to form Volkswagen according to his own ideas and he also wants to give Porsche and CEO Wendelin Wiedeking the boot,” Dudenhoeffer said.

Source - Bloomberg

"Porsche is running into financial trouble...."

Porsche Automobil Holding SE (PAH3.XE) said Thursday it has no plans to sell its sportscar operations to Volkswagen AG (VOW.XE), dismissing a media report published earlier Thursday.

"We resolutely dismiss the speculation, which is currently being leaked on purpose," a spokesman for Porsche said.

The Financial Times reported earlier Thursday that Volkswagen could take over Porsche's sports car unit, citing people close to the situation. The move would turn the tables on Porsche, which boosted its Volkswagen stake to a majority holding in January.

At Thursday's shareholder meeting, Volkswagen Chief Executive Martin Winterkorn is facing questions on Porsche's future role at VW after analysts voiced concerns that Porsche is running into financial trouble, squeezed by mounting net debt of EUR9 billion after raising its VW stake to 51%.

The closely-held firm has repeatedly denied that it faces financial difficulties.

Source - WallStreetJournal