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Volkswagen may 'carve out' Lamborghini to list on the stock exchange

FRANKFURT — Volkswagen is drawing up plans to set up Lamborghini as a more independent unit, and is discussing long-term supply deals that could make it easier to list it on the stock exchange, two sources familiar with the matter told Reuters. "Volkswagen is in the process of carving out Lamborghini, and to organize future supply and technology transfer deals," one of the sources familiar with the matter told Reuters. The Italian sportscar brand, which is currently a division of Audi, could be partially listed, with Volkswagen retaining a controlling stake, the first person familiar with the talks said. There is no formal decision to divest Lamborghini, a second source said, adding that the timetable of any deal remained unclear. "This is a first step which gives VW the option to list the unit further down the line," the second source told Reuters. A third source familiar with the discussions said the future of Bugatti, Lamborghini and Ducati was discussed during a supervisory board meeting last Friday. The possibilities for how to electrify the Lamborghini and Bugatti brands through partnerships and investors was discussed, the third source said. Bankers and potential cornerstone investors in an IPO have been approached by the carmaker, the sources said. Volkswagen declined to comment. Volkswagen Group's Chief Executive Herbert Diess on Wednesday said the carmaker will announce "important steps" about the company's future before the close of the year. Volkswagen is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play within the multi-brand carmaker as part of broader quest for more economies of scale, senior executives told Reuters. A global clampdown on combustion-engined vehicles has forced carmakers to accelerate development of low-emission technology for mainstream models, leaving Volkswagen managers struggling to find resources to electrify low volume sportscar models. Related Video:

Auto Express gets close-up look at the 2016 Audi R8

Audi invited Auto Express to the Ascari circuit in Spain to get a ride in the new R8 that will be introduced at the Geneva Motor Show. Jack Rix starts by giving us a walkaround of the camouflage-covered coupe, the obvious difference between it and the leaked image from a couple of weeks ago being the slatted front intakes. However, those intakes are present on the image Audi teased showing off one new, slimmer, laser headlight. The biggest shock: there will be no V8 model at launch - there will be one engine in two levels of tune. The first is the 5.2-liter R8 V10 with 540 horsepower, a bump of 15 hp over the present car. The second is the 5.2-liter R8 V10 Plus with 610 hp, a leap of 60 hp over the current model. That hotter trim, identified by its fixed rear wing, drops the 0-60 mile per hour time by a half-second to 3.2 seconds, and increases top speed seven miles per hour to 205 mph. Rix ran his fingers along the intakes behind the door and said he could feel sideblades, so all is not lost - what would an R8 be without sideblades? More obviously, on the V10 Plus Rix looked over there are new trapezoidal exhaust tips framing a serious diffuser in back. Underneath, the aluminum chassis adapted from the Lamborghini Huracan is 15 percent lighter than before and 40 percent stiffer. Shifting will be done via a seven-speed S-tronic dual-clutch transmission only. There are seven driving modes, a switchable exhaust note, and more direct variable steering. The German test driver Rix rode with said the new R8 is easier to drive faster, which - no matter what you think of the looks - will make it pretty special. News Source: Auto Express via YouTubeTip: Clark Geneva Motor Show Audi Coupe Luxury Performance Videos

Audi S3 pitted against BMW M135i in track battle

Audi and BMW have long been enemies on both the road and the track, with their respective M and S/RS lines duking it out to the delight of auto enthusiasts everywhere. In this video from Evo, two of the rivalry's newest combatants take to the track - the Audi S3 and the BMW M135i.
The new Audi S3, which is finally coming to America, throws down with a 2.0-liter, turbocharged four-cylinder. 290 horsepower and 280 pound-feet of torque are deployed to a Quattro all-wheel-drive system via a six-speed, S-Tronic dual-clutch transmission, allowing the five-door Audi to scamper to 60 in under five seconds.
The BMW, which Americans will know as a long-roof version of the new M235i Coupe, comes to the track with 320 ponies and 331 lb-ft of torque. That's a good bit more than the Audi, but the M135i has only two wheels to send its power to, an eight-speed single-clutch automatic (a six-speed manual is available) and a slightly higher curb weight.