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Bentley testing new SUV in Audi Q7's clothes

Sure, this looks largely like an Audi Q7. What if we told you, though, that it was actually a Bentley? This may be one of the very first sets of images we've seen of the aristocratic brand's SUV. Based on the borrowed Audi bodywork, however, testing appears to be in the early stages.
While it may look like an Audi Q7, there are a number of giveaways. One of the more subtle are the British number plates, in place of the traditional German plates that would be found were this a mule for the next Q7. Other changes are more noticeable. According to our spies, this mule is much wider, while its fenders have also been enlarged to accommodate larger wheels and tires.
Out back, four exhaust pipes jut out from the lower fascia, while larger brakes are hidden behind black wheels. The big indicator that this is something special, though, can be seen in the front fascia. The heavily modified front clip is home to two massive intakes below the headlights. According to our spies, these conceal a pair of intercoolers. Whether they are for Bentley (and Audi's) twin-turbocharged, 4.0-liter V8 or the 6.0-liter W12 is unclear.

VW Group to split brands under four holding companies

The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies. Here's the breakdown. Things will be split logically, considering the inter-sharing of parts, platforms, and engines. The Volkswagen brand, Seat, and Skoda make up a passenger vehicle division led by former BMW man Herbert Diess. Audi, which is tightly intertwined with Lamborghini and motorcycle manufacturer Ducati, will be managed by current Audi exec Rupert Stadler. Porsche and Bentley, which are already quite close, will be joined by Bugatti and run by Matthias Mueller. Finally, a commercial vehicles division will include Volkswagen Commercial, Scania, and Man. Former Daimler exec Andreas Renschler will take care of the big vehicles. The massive move, according to Automotive News Europe, is part of an internal VAG effort to move away from the structure established by ousted Chairman Ferdinand Piech, who favored a compact, but highly centralized, management structure to oversee the independent actions of the company's brands. Criticism of Piech's arrangement stemmed from the company's slow responses to changes in the market, ANE reports. The new structure should make for a more efficient, streamlined company that's better able to make crucial decisions. What are your thoughts? Should VAG decentralize, or did Piech have the right idea? Have your say in Comments.

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.