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Don't hold your breath for an Audi RS8

There was a time not so long ago when Quattro GmbH produced essentially one model at a time. But that time is behind us. These days it's expanding into a full-fledged performance division to rival Mercedes-AMG and BMW's M department. Quattro GmbH is currently building the Audi RS4 Avant, RS5 coupe and cabrio, RS6 Avant, RS7, RS Q3 and the TT RS coupe and roadster - not to mention the R8. And while it's showing no signs of slowing down, but the latest intel from across the pond suggests we shouldn't count on an RS version of Audi's flagship sedan.
This according to Car and Driver, which spoke to Stephan Reil, the chief engineer at Quattro GmbH. Reil says Audi works on a teutonically rigid performance formula: an RS model has to have 20 to 25 percent more power than the existing S version. Considering that the existing S8 makes 512 horsepower and the RS7 a solid 553, we're not sure Audi really needs anything more powerful. But by Reil's calculations, the RS8 would need to pack between 630 and 655 hp, which would put it well ahead of rivals like the 550-hp Jaguar XJR, the 540-hp BMW Alpina B7, the 523-hp Maserati Quattroporte and even the new 577-hp Mercedes-Benz S63 AMG - and in league only with the even more powerful S65 AMG, which in its outgoing form produced 630 hp.
The question then comes down to whether there are enough customers lining up for the S65 that Audi would want to poach away from Mercedes. Or perhaps more pertinently, whether it might end up just taking customers from the new Bentley Flying Spur, which is already offering 616 horsepower in an even more prestigious, if less performance-focused package. Either way you look at it, Audi is apparently steering clear.

Audi A3 E-Tron launching at $51,500 in Germany

Audi has put a price tag on the A3 Sportback E-Tron plug-in hybrid, for which presales begin this month in Germany. To get your hands on one of these little guys, Audi is asking for ˆ37,900, or about $51,537 according to current exchange rates. Of course, the base MSRP doesn't include any incentives, but in Germany, those savings would come from certain annual tax exemptions that apply to PHEVs. Buyers in other countries might have more luck in getting into an A3 E-Tron for less. Audi lists its most important markets for the A3 E-Tron as Germany, Sweden, Norway, Holland, the UK and, despite no firm date for the car's arrival here, the United States. These countries, according to Audi, are where buyers are willing to spend their green (or the more colorful banknotes of Europe) on green cars. These places also enjoy nice things, or in Audi's words, "They appreciate the classic strengths of the Audi brand: high-end technology, uncompromising workmanship, sportiness and elegant design." In Germany, Audi will sell the A3 Sportback E-Tron at select dealerships. The service departments of those 100 or so dealers will get special training to work with the high-voltage technology used by the plug-in hybrid. These locations will also feature free-to-use charging stations for customers. The Audi A3 Sportback E-Tron's lithium-ion battery stores 8.8 kWh of juice, and is supplemented by a four-cylinder, 1.4-liter TFSI engine which works parallel to the electric motor. Total output is 204 horsepower and 258 pound-feet of torque, directed to the front wheels via a six-speed S Tronic transmission. The car can reach 60 miles per hour in 7.6 seconds and has a top speed of 138 mph. It can travel of to 31 miles on battery power alone. Deliveries for the 2015 Audi A3 Sportback E-Tron will begin in Germany and Central Europe this winter.

Volkswagen posts quarterly profit despite drop in sales

Volkswagen returned to profit in the third quarter as surging Chinese demand for luxury cars helped offset a 1.1% drop in vehicle deliveries due to the pandemic, sending its shares as much as 3% higher on Thursday. The German automaker's return to the black comes amid spiking coronavirus cases in Europe that led governments in France and Germany to order their countries back into strict national lockdowns on Wednesday. "The coronavirus remains a central problem," Volkswagen Chief Financial Officer Frank Witter said in a conference call with reporters. "This situation now is anything but relaxed." But Witter said the group expected the economic recovery to continue and did "not anticipate any nationwide lockdowns in larger markets." Witter said the takeover of U.S. truck maker Navistar International by Volkswagen's trucking unit Traton was an important acquisition, but the "current economic climate will not make this easy." Volkswagen reiterated it expects to post a profit for the full year, saying its business "recovered noticeably" in the third quarter as sales in China of premium vehicles, including Audi and Porsche sports cars, rose 3%. The quarterly performance was also aided by a series of cost-cutting measures launched earlier this year. Volkswagen said its net liquidity rose to 24.8 billion euros from 18.7 billion at the end of the second quarter. Excluding one-time items, third-quarter operating profit was 3.2 billion euros ($3.8 billion), down from 4.8 billion euros a year earlier, but up from a second quarter loss of 1.7 billion. In a note to clients, Jefferies analyst Philippe Houchois described the results as a "solid performance with strong cash, but relatively muted in the context of the (auto) sector recovery." Last week, German rival Daimler reported a record 24% jump in Chinese demand for its Mercedes-Benz cars, boosting its margins in the third quarter. Italian-American Fiat Chrysler Automobiles and Peugeot manufacturer PSA Group both also posted solid results this week. Witter said Volkswagen could not say for sure whether it would meet EU CO2 emissions targets this year, adding "it will be a tough race." At 1030 GMT, Volkswagen shares were up 2.9% at 129.20 euros. Related Video: Earnings/Financials Audi Bentley Bugatti Lamborghini Porsche Volkswagen