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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:

XCAR shows how Audi engineers let loose with A1 Quattro

In its ultimate mortal guise, the Audi A1 Black Edition - the littlelest little guy Audi makes - costs 22,340 pounds ($33,705 US) in the UK and comes with a turbocharged 1.4-liter four-cylinder that outputs, at most, 182 horsepower and 184 pound-feet of torque. The Audi A1 Quattro - still employing the body of the littlelest little guy Audi makes - costs more than 41,020 pounds ($61,888 US) gets a turbocharged 2.0-liter four-cylinder from the Audi TTS with 252 hp and 258 lb-ft. And quattro. And 17-inch, center-locking, white wheels.
The crew at XCAR gets the A1 Quattro on video, to both question how the A1 Quattro happened and then to praise it even if they never found the answer. The hosannas come too late for anyone in the UK who was waffling about buying one, however, since all 19 meant for the 'sceptered isle are sold out. You can see what we missed out on in the video below.

New Audi Q5 refines original model's winning formula

The first Audi Q5 made a name for itself as a baby Q7, hitting a Goldilocks zone in the crossover segment and challenging BMW, Mercedes-Benz, and Lexus for supremacy in what would become one of the luxury market's most important segments. The Q5 is already Audi's best-selling vehicle globally, underscoring its importance to the German brand. Like its predecessor, the second-generation Q5 takes the Q7's looks and tech, then distills it into a smaller package. But unlike the Q7, the Q5 doesn't look quite so dowdy in its redesigned body. We'll attribute that to the smaller front and rear overhangs, which keep the Q5 looking like a crossover instead of a high-riding wagon. The face is mostly a carbon copy of the Q7's, with a prominent grille featuring a silver surround and flanked by a set of clean, stylish headlights. In back, the smaller Audi gets more expressive taillights that harken back to the first-generation model in their lighting signature. We aren't really sure what Audi was going for with its two-tier rear bumper, but it doesn't work and is inarguably the worst piece of an otherwise fashionable design. Aside from restyling the Q5's body, Audi managed to both expand it in every direction and trim nearly 200 pounds of body fat through a mix of "maximum tensile strength" steel and aluminum. Audi is also promising an impressive aerodynamics gain for the new body – the company's engineers slashed the coefficient of drag from 0.33 to 0.30. That should mean a quieter and more efficient drive. Like the Q7, the new Q5 benefits from Audi's push into advanced driver information systems. It gets the 12.3-inch TFT display, also known as Virtual Cockpit, on top of the 8.3-inch MMI display atop the center stack. MMI takes a page from Apple with its Personal Route Assist. Much as CarPlay will automatically display how long it takes you to get home, Audi's new system can study an owner's behavior and suggest the best route to a given spot, even when the navigation isn't active. While we're geeked about the new tech, the powertrain front is less newsy. The European press release lists one gas engine – a 252-horsepower 2.0-liter, turbocharged four-cylinder – and four TDI powertrains. Those latter engines are dead to the US, as Audi faces the backlash from parent company Volkswagen's diesel emissions scandal.