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Audi A0 in development based on VW Up!

Bigger, it seems, is no longer better. Volkswagen has made waves with its Up! city car, a plucky three-door that's been a bit of a hit since it burst onto the automotive scene, spawning a number of variants during its short life. And while our European friends have gotten a Cross Up!, a commercial version, an EV model, Seat- and Skoda-badged variants, and a rumored diesel-electric Twin-Up!, the small city car has been lacking in terms of its premium content.
That fact makes this rumor rather tantalizing - Audi might be working on its own version of the front-engined, front-drive city car, to be called the A0. The report comes from AutoExpress, which claims Audi CEO Rupert Stadler wants a premium Up! that features a distinctive interior and exterior treatment.
Changes could include a trapezoidal grille, in addition to premium exterior features like LED lighting and alloy wheels. The cabin would feature leather and likely a version of Audi's MMI infotainment system, while power would come from a 109-horsepower, 1.0-liter engine found in the Up! GT Concept.

Volkswagen Group names Paefgen head of classics program

You may remember the name Franz-Josef Paefgen. Until recently, the German engineer and executive was head of both Bentley and Bugatti. Before that he was chief executive of Audi, after working for several years at Ford. He technically "retired" earlier this year, but like the cars he helped create, an executive like Paefgen could never really retire. So it should come as little surprise that the Volkswagen Group has named Dr. Paefgen head of its Classic program.
In his new capacity, Paefgen will oversee the historic automobile activities of the entire VW Group, including those of Volkswagen, Seat, Skoda, Audi, Lamborghini, and of course Bentley and Bugatti. It strikes us as a suitable semi-retirement for the man responsible in no small part for the Bugatti Veyron and Bentley Mulsanne, to name just two, and who was decorated in 2006 by the ACO as the "Spirit of Le Mans" for his contribution to endurance racing. Read the official announcement after the break.

US diesel model count to double for 2014?

While diesel cars are popular on most other continents, these less-complex alternative to hybrid-electric vehicles have yet to gain major traction in the US. As an increasing number of light cars and trucks start to offer these fuel-efficient engines, though, sales are expected to climb as well. While BMW, Mercedes-Benz and the Volkswagen Group (Volkswagen, Audi and Porsche) continue to lead the way, more non-German automakers like Mazda, Nissan, Chrysler and General Motors are starting to get serious about diesel in America.
TheDetroitBureau.com reports that the 2014 model year will see the number of diesel vehicles offered in the US double to about 40 nameplates, but the news gets even better for fans of these torquey and efficient powerplants. LMC Automotive has released data about future expectations of diesel cars in the US, and it predicts that sales should be very close to one million units in 2015 (up from an expected 600,000 units this year). By 2018, LMC's calculations suggest that sales will more than double from this year's expected totals accounting for almost 8 percent of new light-vehicle sales.