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Audi diverting a third of R&D budget to electrification

Companies make promises all the time. We'll do X by Y. The new A will be our biggest seller in B. You know the drill. But it's when an automaker puts its money where its mouth is that we really stand up and take notice. That's precisely what Audi is doing as it attempts to convert 25 percent of its sales to electrified vehicles by 2025. Citing two sources with knowledge of Audi's plans, Reuters reports that around a third of the company's research-and-development budget will go to " electric cars, digital services, and autonomous driving." Of course, shifting that much money over to newer technologies means sacrifices elsewhere – Reuters' sources claim Audi will move money away from combustion engines and reduce country-specific powertrain variants, but the sources wouldn't get more specific. According to Reuters, Audi is 22nd in total sales of hybrids and EVs. That's eight spots behind Mercedes and ten spots behind BMW (not to mention hybrid-happy Lexus). Audi's only electric representatives in the US market are the A3 e-Tron and Q5 Hybrid and things aren't much better in Europe – the company needs to dump buckets of money into expanding its meager lineup to bring up the percentage of EVs it sells. Expect greater detail on Audi's electrification plans very soon – CEO Rupert Stadler will discuss the company's path forward on Wednesday at a closed-door meeting in Munich with over 2,000 managers. It's unlikely all those managers will be able to keep quiet. We'll be listening. Related Video: Featured Gallery Audi E-Tron Quattro Concept View 36 Photos News Source: ReutersImage Credit: Audi Green Audi Volkswagen Green Driving Electric Hybrid PHEV e-tron audi e-tron electrification

Audi RS6 Avant and Mercedes-AMG E63 S drag race for Top Gear

Sometimes the kids are late for school, and you need a wagon to get them there in a hurry. In its latest drag race, Top Gear finds out which is the quicker high-performance family hauler: the Audi RS6 Avant or the Mercedes-AMG E63 S. The specs suggest this race should be quite close at the finish line. The RS6 has a 4.0-liter twin-turbo V8 with 552 horsepower, but the E63 S is a little more powerful with 577 hp from a 5.5-liter twin-turbo V8. However, the Audi has a traction advantage from the all-wheel drive system, whereas the Mercedes only spins its rear wheels. Pick your favorite, and then watch the video to see if the similar numbers translate to a photo finish in the real world. Related Video:

Mercedes considering Audi Allroad rival

The Audi Allroad is something of an anomaly in the automotive world. Its competitors are limited to the recently released Volvo V60 Cross Country and perhaps the far cheaper Subaru Outback. The lifted premium wagon hasn't exactly done great for Audi, only selling a few hundred examples each month. Its best sales year was 2013, and even then, only 5,300 left US showrooms. Despite these limited prospects, word from Australia is that Mercedes-Benz is looking at launching its own competitor to the Allroad. "We are looking at every single niche, so we are studying this [Allroad] at the moment, but it is not confirmed," Matthias Luhrs, VP of sales and a member of the product management at MB, told Motoring.com.au. "We are looking obviously at C-Class and E-Class, but no confirmation at the moment." Fortunately, Luhrs recognizes that the Allroad isn't exactly a smash in the US. "In the US, no matter how long, short, high ... they don't like station wagons," Luhrs said, while adding that the Allroad concept is "developing quite successfully" in Italy and southern Europe. And for those hoping for a lifted C- or E-Class sedan, Luhrs also put the kibosh on that, saying, "We are not studying that." So what does this tell us? Well, it's still far from a sure thing that Mercedes will launch a lifted C-Class or E-Class Estate. And even if the company does go ahead with it, like the rest of the brand's long roofs (E-Class aside), don't expect to see it on US roads.