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Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati

2017 Audi Q7 First Drive

Automotive evolution rarely makes a great leap, instead creeping along from new model to new model at a predictable pace. Audi's new Q7, though, is like handing a Bic lighter to a Cro-Mangon man smashing rocks. In Europe the new version drops 700 pounds, almost enough to reclassify its species. Audi's fire-machine will arrive in America in early 2016, as a 2017 lighter model. We spent some time in the Swiss Alps flicking the 2017 Audi Q7. As far as revolutions go, the 2017 Q7 certainly looks new. It resembles a tall station wagon more than ever, at least in European trim. A little tweaking of the design wand has left the rear end boxy and angular. Our test models use an adaptive air suspension, and the the "all-road" setting lifts the Q7 about an inch, to the normal ride height for US models. Thus raised, the big Q looks more like an SUV. This Q7 represents the first of the Volkswagen Group's MLB-platform cars. Lighter and said to be more dynamic, MLB will underpin everything from the next-gen A4 to performance and luxury SUVs like the Porsche Cayenne, and Bentley Bentayga. With the structural improvements comes a diet heavy in aluminum, the prime reason for the previously-mentioned weight savings. When outfitted for our content and crash-safety specification, US-bound models will still be about 500 pounds lighter than before. But dramatic weight-savings isn't the Q7's only trick. The adaptive air suspension significantly changes the character of the Q7, especially in the sportiest Dynamic model. There's an optional all-wheel steering feature that improves turning radius, and helps with high-speed stability. This is not to be confused with Audi's Quattro all-wheel drive, which along with a panoramic sunroof and seven seats, comes standard on all stateside models. Under the hood, things aren't so different. Both available engines are reworked but largely the same. The supercharged 3.0-liter gas engine still makes 333 horsepower and 325 pound-feet of torque, but it's not as thirsty as it used to be. Expect a two or three mile-per-gallon bump once official EPA ratings arrive. That engine, as well as Audi's reworked 3.0-liter V6 TDI – good for 260 hp and 443 lb-ft once outfitted for the US – are mated to the ubiquitous ZF eight-speed transmission. The Q7's driving character greatly depends on where it is pulling power from. While the diesel model is capable, turbo lag cuts back on the satisfaction we normally derive from oil burners.

2016 Audi A3 Sportback E-Tron First Drive

While its parent company is still in the throes of an emissions scandal that has thrust the "green" credentials of automakers worldwide under the microscope, Audi is launching its first plug-in hybrid in the US. Audi is ready to double down on its electrified future, putting up its own reputation as collateral. This A3 Sportback E-Tron – a vehicle we've sampled in prototype form – is a tech-savvy plug-in car that could be the perfect vehicle to mark the brand's new commitment to an electric lifestyle. Straightaway, Audi USA President Scott Keogh addressed the TDI situation. He says he and the rest of the company are "shocked, followed by appalled, followed by anger, and now in the phase of drop-dead determination to make this thing right." Out of the 500,000 affected 2.0-liter TDI engines around the world, 14,000 are in Audis: about 3,000 A3 TDI sedans and about 11,000 A3 TDI Sportbacks. "It's quite simple. CARB and the EPA have told us these cars can stay on the road, they will stay on the road until we have a fix, and when we have a fix, we will absolutely fix these cars." The most important thing going forward, Keogh says, is regaining the trust of both the dealers and customers. Audi has been enjoying a bit of momentum in recent years, building a reputation for itself along the way. Audi came on the scene in the US in 1969, but it took until 2010 for the company to sell 100,000 units in a single year. Now, "In 2015, we're starting to look down the barrel of nearly doubling our sales in five years," says Keogh. The A3 achieves a 40-percent segment share, and for 75 percent of those buyers, it is their first purchase of a luxury brand. But as its own pace increases, the momentum of the industry as a whole has pulled Audi toward this foray into electromobility. Enter the A3 Sportback E-Tron. There's a little extra weight from the battery pack, but the suspension does a good job of keeping it unnoticeable while driving. The A3 E-Tron has several strengths working in its favor. First of all, as Keogh puts it, the hatchback is a "real, proper Audi – a real, proper, fully rounded driving machine." Qualifications such as "this is an electric car" don't matter. "People just want to buy a car," he says. It has the technology, build quality, and drivability of an Audi.