+++ The original AUDI TT was first produced back in April 1998, at a factory located in Gyor, Hungary. And after many years, the 500,000th unit has rolled off the production line: an important milestone for the company. The 500,000th unit is a TTS Coupe finished in Viper Green, and is currently on its way to its owner in the United Kingdom. Across 3 generations, Audi has produced over 1 million units of the TT. The TTS Coupe is a beefed-up version of the TT Coupe. Under its hood is a turbocharged 1,984 cc engine that gives out as much as 290 horsepower at 5,300-6,200 rpm and 380 Nm of torque from 1,800 to 5,200 rpm. In just 4.7 seconds, the roadster can accelerate from 0-100 kilometers per hour before continuing on to its top speed on 250 km/h. The engine comes standard with a six-speed dual-clutch automatic transmission that gives power to the all-wheel drive. The TTS is definitely one fast car. At Audi’s Hungarian plant, there are about 4,000 people in charge of manufacturing the TT Coupe, alongside high-powered RS versions of both body styles. This factory is also in charge of assembling the A3 models namely the A3 Sedan since June 2013, which was followed by the A3 Cabriolet in October of the same year. It was in this factory where both models were produced the first time. The automaker plans to add more models to the assembly line, such as the Q3, as it will be moved from the Martorell, Spain to the plant in Hungary. This will not happen until next year though as the luxury compact crossover arrives as a new generation model. Along with it will be its more stylish sibling, that is the first ever Q4. To make this possible, Audi needs to build a new assembly line that will require as much as 80,000 square metres of space. Last year, Audi Hungaria was able to roll out 122,975 cars, at the same time building 1,926,638 engines in total. To be more specific, they were able to manufacture a wide array of engines that range from 86 horsepower and 610 horsepower. These comprise 6 different types of gasoline engines and five kinds of diesel engines. If you had not known, there are about 6,000 employees that are assigned to work here just to build engines. In one day, the plant needs to produce as many as 8,800 engines that will be shipped to 32 plants on 3 continents. +++
+++ We already know BMW ’s M division won’t get its hands on the upcoming Z4. The top-spec model will wear the M40i emblem, and a recent report suggests it could offer 2 different power outputs. The first uses a 3.0-liter straight-six called B58M1 internally and tuned to produce 340 horsepower; the second uses another 3.0-liter straight-six named B5801 rated at 390 horsepower. There are several ways to explain the power difference between the two six-cylinder engines. The one with the higher output could be for power-hungry markets like the United States, while the one with the lower output could be for Europe, where tight emissions regulations compounded with expensive gasoline and high, power-based registration taxes could make the 390 horsepower model a tough sell. Although pure speculation, the 390 horsepower engine could be part of a Competition Package that will also bring a tighter suspension, bigger brakes, and a few components made out of carbon fiber. If that’s the case, that means the base Z4 M40i will get a 340 horsepower six. We’ll learn more about the 2018 BMW Z4 in the coming months. It’s expected to look a lot like the Concept Z4 when it makes its debut next year at the Geneva Auto Show. +++
+++ Sergio Marchionne, CEO of Fiat Chrysler Automobiles and boss of Italian supercar marque FERRARI , has confirmed the Prancing Horse will indeed produce a ‘utility vehicle’, though it will be produced in limited numbers. In a press conference at the New York Stock Exchange this week, Marchionne said the company is “dead serious” about what it calls an “FUV” model (short for ‘Ferrari Utility Vehicle’). The new sports crossover will be the sole four-door offering in the company’s line-up, though it will be produced in limited numbers to ensure it stays exclusive. “We need to learn how to master this whole new relationship between exclusivity and scarcity of product, then we’re going to balance this desire to grow with a widening of the product portfolio”, Marchionne said. That’s a different approach to companies like Bentley and Porsche, who are using SUVs like the Bentayga and Cayenne to significantly increase sales volume. Lamborghini is set to do the same with its upcoming Urus. According to Bloomberg, Ferrari will take around 30 months to decide on the final details to do with the FUV’s production, but its coming, at least, now appears confirmed. In addition to the big news from the Prancing Horse, Marchionne played down rumours that FCA subsidiary Jeep would be staying under the umbrella, following reports that China’s Great Wall Motor could be purchasing the iconic American brand. “It’s incorrect to assume that FCA’s future hinges on doing a deal”, he said. FCA’s boss did add, however, that the company would be more profitable if it combined with another automaker, though according to Bloomberg’s report Marchionne said there hasn’t been any offers from a partner that meets his criteria. It’s been an interesting ride over the past 12 months, with Marchionne completely backflipping on his stance regarding a Ferrari SUV. Originally the company’s boss said you’d “have to shoot him” before such a vehicle could happen, before more recently saying it would “probably happen”. Now that the FUV has been confirmed, it’s likely that it will feature a hybrid powertrain, going by recent reports that Ferrari will only sell hybrids from 2019 onwards. +++
+++ LAMBORGHINI ’s on-again, off-again four-door sedan is back in the cards. The storied Italian brand is getting read to launch the Urus, its first SUV of the 21st century. The off-roader is forcing Lamborghini to re-invent itself as a company; executives expect the brand’s sales will double, if not triple, so they need to prepare for the growth. The idea of adding a second four-door model will be seriously evaluated once the Urus reaches its cruising altitude.
“We must be humble. The Urus is only at the pre-production phase and, while the goal is to double sales volumes over a few years, and we have yet to earn that accolade. But of course we should always be looking to grow. If we can take the first step with the Urus, a huge step, then there are possibilities”, explained Federico Foschini, the brand’s commercial director, in an interview. Lamborghini’s sedan will take the form of a front-engined, rear-wheel drive model that could share its platform with the Porsche Panamera. It hasn’t been approved for production yet because not everyone at the Raging Bull is on-board with the idea. If launched, don’t expect to see it until 2021. +++
+++ With 3 more months to go before the year ends, 3 premium auto companies are jousting their way up to see which of them could claim the crown as the best-selling luxury carmaker in the United States for 2017: MERCEDES , BMW and Lexus. Mercedes managed to hold on to the US No. 1 spot after 9 months of sales. From January to September, it delivered 242,250 luxury vehicles, excluding its vans and Smart branded models. This figure represents a 2.8-percent year-on-year drop in sales compared to the first nine months of 2016, when Mercedes delivered 249,204 premium units in the US. Mercedes continued to lead the US luxury race even after posting dismal sales in September 2017. The carmaker suffered a sales decline in the month (by 1.7 percent) making it the only luxury brand that didn’t registered a surge in September 2017. Figure-wise, Mercedes delivered 29,008 units in September 2017 in the US, compared to 29,500 luxury vehicles sold in the same month in 2016. Meanwhile, BMW was able to cut the lead of Mercedes after 9 months to 22,075 units, after posting a 0.7-percent increase in deliveries in the month. BMW delivered 25,571 luxury units in September 2017, compared to 25,389 vehicles in the same month last year; representing a surge of just 182 units. For the year to date (January to September 2017), BMW delivered 220,175 luxury vehicles in the US. This is around 4.3 percent lower than the number of units BMW sold in the country in the first nine months of 2016, pegged at 230,133 units. BMW is being seriously threatened at the US second spot by the Toyota’s luxury brand, Lexus. The gap separating BMW and Lexus after 9 months of sales is only 516 units, which is narrow enough to be surpassed with 3 months remaining in the year. For the year to date, Lexus delivered 219,659 vehicles, which is, interestingly, seven percent lower than it sold in the first nine months of 2016. For the month of September 2017, on the other hand, the Japanese luxury carmaker delivered 26,196 vehicles, representing a 1.5-percent year-on-year hike in deliveries. Lexus sold 25,801 units in September 2016. If Lexus could continue this momentum, perhaps BMW would be unseated at the end of the year. The hike in deliveries in September in all luxury brands (except for Mercedes) came after US sales of luxury vehicles were weakened in August by Hurricane Harvey as well as by inventory shortages hurt August sales. In fact, overall luxury sales in the US in September grew 4.9 percent to 174,504 vehicles, with Genesis, Infiniti, Jaguar, Land Rover, Porsche and Volvo posting double-digit percentage growth. However, this is below the overall car sales in the US in September, which soared 6.3 percent. +++
+++ The RENAULT Group has announced an ambitious 5 year plan to increase its electric vehicle offerings, reduce its reliance on diesel engines, and dramatically grow sales and profits. At the core of the company’s new Drive The Future strategy are 21 new cars, including 3 “add-ons”, due before the end of 2022. Renault Group vehicles are primarily sold under the Renault, Dacia and Lada marques. As part of its lineup, the company will offer 8 pure electric vehicles, 12 electrified models, and a “complete electric LCV (light commercial vehicle) range”. In “key markets”, Renault will also offer “100 per cent connected vehicles”, as well as 15 vehicles with autonomous driving, reportedly between level 2 and level 4 depending on the model. Last month, the Renault Nissan Mitsubishi Alliance announced a new electric vehicle platform that will support self-driving technology. Renault will reduce its number of diesel engine offerings by half, and cut the number of diesel engine families from 1 to 1. By 2022, 80 percent of Renault’s models will be based on common platforms shared with the rest of the Renault Nissan Mitsubishi Alliance. Renault expects to invest 18 billion euros in research and development over the next 6 years, and extract savings worth around 4.2 billion euros. If all goes according to plan, Renault’s sales will grow from 3.5 million per annum at the end of 2016 to 5 million in 2022. While sales in Europe will remain flat at 1.8 million units annually, sales in all other regions are expect to grow significantly. Eastern Europe and Russia will grow from 649,000 cars to 1.1 million; Africa, the Middle East and India will expand from 491,000 to over 850,000; and South and Central America will increase from 354,000 to 600,000. Most importantly for us, sales in the Asia-Pacific and China are forecast to grow from just 167,000 to 700,000, a four-fold increase. Key growth markets are expected to be Brazil, China, India and Iran. The company’s revenues are envisioned to grow from 51 billion euros at the end of 2016 to 70 billion euros by 2022, with an operating margin of between 5 and 7 percent. The company hopes to maintain positive cash flow by increasing prices, so its vehicles are seen as a step above those offered by Ford, Skoda, and Hyundai. At the plan’s launch, Carlos Ghosn, CEO of Renault, said, “Groupe Renault is now a healthy, profitable, global company looking confidently ahead. Drive the Future is about delivering strong, sustainable growth benefiting from investments in key regions and products, leveraging Alliance resources and technologies, and increasing our cost competitiveness”. +++
+++ While there was no surprise that ROLLS-ROYCE chose to launch the new Phantom with a V12 petrol engine, the company has also been dropping broad hints it will follow with an EV version. Those hints started as long ago as 2011 with the 102EX concept, but now CEO Torsten Müller-Ötvös has confirmed that the new Phantom is likely to receive the option of a pure electric powertrain during its lifespan. As we’ve previously reported, Rolls-Royce is not planning to offer hybrids, with the plan being to introduce an electric powertrain alongside internal combustion engines. “We will go full electric, we don’t do any interim steps”, Müller-Ötvös told at the launch of the Phantom VIII in Switzerland. “Emission free is emission free”. While admitting that electrification isn’t being demanded by Rolls-Royce’s well-heeled clientele (“I haven’t seen a single cheque arriving on my desk saying ‘build me one’ ”, Müller-Ötvös admits) it is likely to be forced by legislative changes, especially in Asia where Rolls anticipates some major cities will soon announce plans to ban internal combustion engines. “Then, of course, it will become a must”, he said, “and I fully agree the Phantom is perfect, that is what we have already done a few years ago with the 102EX”. But the company remains more sceptical on autonomy, with Müller-Ötvös saying there are no plans to bring any of BMW’s enhanced cruise control systems to Rolls-Royce products. “It all depends on the progress of the development side”, he said, “when it is right and advanced enough that it is a really effortless experience for customers, not needing to keep your finger on the steering wheel”. Müller-Ötvös also said there won’t be a “Black Badge” performance version of the Phantom, as there has been with the Ghost, Wraith and now Dawn: “that wouldn’t be right for the car, it’s not what customers expect”. +++
+++ Earlier this year, TESLA sent “Save the Date” emails to customers with regards to the reveal of the Tesla Semi truck. The event had been set to take place on October 26, after being postponed from the original release date of September 28. Back in April, Elon Musk even tweeted, saying that the team has done an amazing job building the Tesla Semi truck. He described it as the “next level” vehicle. But just recently, Tesla announced that the Semi’s reveal date will again be moved to November 16. You are probably wondering what’s with the delay this time. Well, Musk tweeted that it has something to do with production bottlenecks for the Model 3, plus the company had to increase battery cell production for the energy storage system that is currently being sent to Puerto Rico and other areas that had been affected by tragedies. Despite all that, we found that Tesla will actually cover travel and accommodation expenses caused by the delay of the Semi truck’s reveal, so customers should not be disappointed. What do we know about the Tesla Semi so far? There have been a lot of rumours about the model’s specifications. For instance, there was a report saying that the Tesla Semi will have 320 to 480 kilometers of range, and that it will have an ultra-fast charging battery. However, none of these have been confirmed yet. Earlier, Musk also described it as a “heavy duty, long range, semi-truck”. It will be able to carry a lot of weight while driving long distances, alleviating heavy duty trucking loads. It is in fact a contrary to what most people think that trucks do not have enough power or range. Therefore, Musk wants to prove them wrong with this model, where he can show people that an all-electric truck can actually out-torque any diesel semi, and that it will win in a tug-of-war versus any diesel semi. Furthermore, the Tesla Semi may be good for economics. Recently, Morgan Stanley said that the Semi could be “the biggest catalyst in trucking in decades”, and that it may actually be 70 percent cheaper to operate than a diesel-powered truck. But as I have mentioned earlier, these are all just rumours and that no confirmed details have been released just yet. Still, expectations are pretty high. Hopefully, Tesla does not postpone the reveal to another date, because a lot of people are anticipating the release of the Semi truck and another change might disappoint them. So by next month, we will find out more details when they finally release the all-electric truck. +++