VW Group to Invest €51.6 Billion in its Automotive Division Over the Next Five Years

€51.6 billion, or about US$71 billion at today's exchange rates, is a lot of money - equal to around 15% of Sweden's GDP, for example. Nevertheless, that's the amount of money that will be poured into the Volkswagen Group's automotive division for production capacity and vehicle development in the next five years. The goal, according to VW CEO Martin Winterkorn, is "to make Volkswagen the world's most future-proof automotive group".

The new budget will see €41.3 billion invested in property, factories and equipment with more than half of this amount (57%) finding its way into Germany. The remaining €10.3 billion consists of additions to capitalized development costs.

VW said that it will spend most of the budget (€27.7 billion) on modernizing and extending the product range of all its brands with the main focus being on new vehicles, successor models and derivatives in almost all vehicle classes based on modular technology.

"This will allow the Volkswagen Group to systematically continue its model rollout with a view to tapping new markets and segments," the company said in a statement.

In terms of powertrain production, the Group plans to launch a new generation of engines "with enhanced performance, fuel consumption and emission levels," and continue the development of hybrid and electric motors.

Furthermore, €13.6 billion will be used for cross-product investments. Volkswagen will thoroughly modernize or open new press shops, paintshops and assembly facilities including its new North American plant, which is scheduled to begin operating in 2011.

"The Volkswagen Group will help shape the technological turning point in key areas of the automotive industry and, to do this, will continue investing in environmentally friendly technologies, efficient drives and new models. We are systematically pursuing the goals of our Strategy 2018 to further increase our profitability and to make Volkswagen the world's most future-proof automotive group. The investment program we have now resolved will play a significant role in this", said Prof. Dr. Martin Winterkorn.

In addition, VW said that its Chinese joint ventures will see a total investment of €10.6 billion in the period 2011 to 2015. However, this investment will be fully funded from the cash flow generated by the Chinese joint ventures themselves and is not included in the €51.6 billion budget.

By Csaba Daradics

Super Green: The New Wave Of Environmentally Conscious Exotic Supercars

It's not that easy being green, least of all if you're a builder of exotic, high performance supercars or uberluxury sedans. Recently however, there has been a move towards improving fuel economy and reducing emissions by many of the world's biggest and most well known luxury and performance brands.

Take Ferrari's stop-start equipped California HELE or Mercedes-Benz's SLS AMG E-Cell concept, for instance. And there's more on the horizon, including the plug-in hybrid 918 Spyder from Porsche and BMW's Vision EfficientDynamics, the latter of which allegedly will offer M3 performance with a CO2 emissions rating of just 99 grams per kilometer.

And it's not just these four who are in it for the environmental crowd cred: other makers including Lotus, Audi, Lamborghini, Jaguar and Bentley are also looking to green up their model ranges.

This comes as no surprise to Christoph Stuermer, an analyst at IHS Automotive in Frankfurt:

"These upper-end, high-performance cars have always been examples of the best car technology out here, and being green is now part of being technologically advanced They have to come up with something so as not to be seen as technical dinosaurs."

Enrico Galliera, the commercial and marketing senior VP at Ferrari, agrees that it's definitely something that the company's customers are all for:

"When you consider buying a Ferrari, you're considering it for the performance. At the same time, when we approached customers and said, 'Here's a way you can still have that and be greener,' the reaction was extremely positive."

So there you have it. Now you can have your cake and eat it too, though you'll have to pay for the cake part first. And with prices around €180,000 (US$252,376) for the California HELE and an expected €500,000 (US$682,260) for the 918 Spyder that is one expensive, green frosted cake.

PS: Metaphors aren't my strong point...

By Tristan Hankins

Via: WSJ

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VW Group Testing Ice- and Fog-Free Windshields

For those of us living in colder climates, ice can be a real hassle during winter time; scraping rock like formations from your windshield isn't the best thing that can happen to you in freezing temperatures... But the VW Group in association with the Fraunhofer Institute for Surface Technology (IST) in Braunschweig, may soon provide drivers a solution to this pesky problem.

Researchers have introduced what they claim to be the first anti-fogging and anti-icing car windscreen. Unlike heated windows, the new glass panes make use of a physical principle that does not allow an ice layer to form in the first place, even at temperatures as low as -18 C or -0.4 F.

The Volkswagen Group says the secret of the innovation lies in a wafer-thin transparent coating of indium tin oxide that is applied to the window and in theory, stops heat from going upwards and prevents or delays cooling of the glass surface to below the dew point.

"We call this a 'Low-E' (low thermal emissivity) coating. Applied to the outer glazing, it prevents heat from radiating skyward. We are proud of this innovation and will promote it throughout the Group. That is because an ice-free window is an added convenience to our customers," explains Thomas Drescher of Volkswagen Development.

"The 'Low-E coating' cannot prevent ice formation or condensation entirely, but it can significantly reduce the likelihood of it happening," Drescher added.

The VW Group says is still has to work around some problems before it offers this technology on production models. One such issue in the current development phase is that new coating interferes with radio transmission impairing radio and mobile phone reception.

"It will take some time before the ice-free car windscreen is market-ready, but we are working intensively toward this goal. The bottom line is that for the Volkswagen Group, the ice-free window represents a successful innovation that is unique worldwide," said Drescher.

New Audi Q5 Hybrid spotted on company's website, gets 2.0-liter TSI and Electric Motor

Although there's been no official announcement other than confirmation of a Q5 Hybrid SUV sometime this year (next week's L.A. Auto Show is a good bet), Audi's website seems to think that the brand's mid-size hybrid crossover is ready for some time in the spotlight.

According to the site, the Q5 Hybrid will be a full hybrid with a 2.0 TSI four-cylinder working alongside a 33-kW (44 HP) electric motor, regenerative braking, and start/stop tech.

Behind the scenes, the car will have an adaptive control system to optimize the gas/electric power ratio. On electric power alone, Audi is expecting the car to be able to cruise at speeds up to 100 km/h / 62 mph. Curious about range and efficiency? There's now a power meter in the instrument cluster for just that reason.

As with just about every car out there these days, there's an S mode; in this case, it provides the raciest performance from the hybrid drivetrain by allowing full access to the 240 horsepower and 480 Nm / 354 lb-ft of torque (there's a boost function, too).

Expect a nice, wordy press release very soon, but I couldn't possibly imagine what else you'd need to know; it's a Q5 Hybrid, which just about says it all.

By Phil Alex

Via: Audi.de

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Audi A1 Project Car by HS Motorsport

Bavarian tuner HS Motorsport has teamed up with Autohaus Kempen and various other aftermarket specialists to create the Audi A1 project car, which features exterior modifications, upgraded suspension and some interior appointments as well.

CFC Styling Station was in charge of the custom paintjob, an "effect-rich silver finish" combined with a black stripe that runs from the front grille to the end of the roof. The rear bumper has been modified in order to incorporate a Golf R32-style two-pipe exhaust system, specially conceived by Fox Sport Exhaust Systems for this project.

To improve handling, engineers at H&R developed a new lowered coilover suspension system (-55 mm at the front and -60 mm at the back).

No tuned car is complete without a nice set of alloy wheels. HS Motorsport offers two different designs, the ASA GT1 in a black matte finish with silver accents, and the "edgier" ASA GT2 in anthracite, both measuring 18-inches. Vredestein and Hankook provide the 215/35 R18 tires. Buyers can also opt for a more powerful braking system from Brembo.

The project car's 122 hp (91 kW) 1.4-liter TSI engine was left untouched, but the German tuner can accommodate power-hungry customers by installing a power kit that increases output to 147 hp (110 kW) and 250 Nm (184 lb-ft) of torque.

Inside, there are two-tone Recaro Sportster CS seats and an optional Alpine sound system.

By Csaba Daradics

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Project Kahn Tunes into the Audi Q7 for the First Time

Over the years, Project Kahn has presented an array of mods for the likes of the Range Rover Sport and Rolls Royce Phantom Drophead Coupe, but now the time has come for the UK-based tuner to unveil its first take on the Audi Q7.

Taking inspiration from another in-house project and in particular the Range Rover Sport RS600, the self-proclaimed "king of aesthetic conversions" created a complete body kit for the German SUV, alongside a few interior appointments.

The so-called Kahn Wide Arched Body Kit features extra-wide wheel arch extensions, front vented wings, redesigned bumpers and a discrete, roof-mounted wing, all painted in Pearl Soft White. A set of 22-inch Kahn RS-X alloywheels complete the exterior updates.

Inside, Project Kahn has wrapped the Q7's interior in black quilted leather with red stitching. Other interior goodies include aluminum sport pedals, a Panoramic Glass Roof and a custom speedometer and rev counter.

The entire package costs £12,000 (or £56,875 with the car included), with all of the aforementioned accessories also available as standalone pieces.

By Csaba Daradics

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