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2015 Audi A3 E-Tron [w/video]

Over the years, we've had a chance to test a lot of Audi E-Tron vehicles, from very early all-electric prototypes (back then we only got to sit in the passenger seat) to the A6 L E-Tron PHEV and the A1 E-Tron plug-in hybrid. All of them were concepts and promises, merely whispers of what was possible, even as the Nissan Leaf, Chevrolet Volt and two Tesla models were making waves in the marketplace.
As we learned last year in our Deep Dive of the E-Tron project, all of the concepts, prototypes and rumors have finally come to fruition in this A3 Sportback E-Tron. Previously, we were given a chance to drive a prototype, but it was only very briefly. Last week, we finally got to run a production-representative example through the hilly roads between Vienna, Austria and Munich, Germany. After spending a solid day with Audi's first marketable E-Tron vehicle, we can say that it's a most amazing bit of engineering, in particular for the way that Audi has done so much to hide the fact that this is an electrified vehicle. Not entirely, of course, but the idea was to make the A3 Sportback E-Tron a no-compromise PHEV. And that means it drives and feels, in many ways, like the standard A3 Sportback despite over 700 extra pounds. Oh, and there's a charge port hidden behind the four rings in the grille.

'Worldwide, every third Audi will be an SUV by 2020'

Automotive News Europe reports the new Audi manufacturing facility in San Jose Chiapa, Mexico will increase the automaker's production capacity for the Q5 SUV by 150,000 units per year. While the plant will supply every market with the exception of China, most of the production is slated to head to the US.
While speaking with ANE, Audi CEO Rupert Stradler said, "Worldwide, every third Audi will be an SUV by 2020." So far this year, 40 percent of Audi vehicles sold in the US have been light trucks, with the company's sales in that segment jumping by 53 percent. By comparison, Audi passenger car sales have increased by just one percent.
The first Q5 vehicles from the San Hose Chiapa plant will show up on dealer lots in 2016. Audi of America recently received a larger 9,000-unit allocation of Q5 models after seeing sales increase 36 percent through April compared to the same period in 2012.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.