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Audi RS3 sedan spied testing at the Nurburgring

Although American enthusiasts often miss out on foreign forbidden fruit, we've known for a while that the Audi RS3 will probably make it to the United States in 2017. While there's been no official word, Audi of America CEO Scott Keogh has made it clear he wants to bring the car over. Audi already sells the handsome RS3 Sportback in Europe, but since European hot hatches don't tend to fly here it will most likely come only as a sedan. Now we have spy shots to drool over. View 7 Photos These gallery above shows the 2016 RS3 Sportback that sits at the top of the range in Europe. The RS3's turbocharged five-cylinder engine sends power through Audi's quattro all-wheel drive system, propelling the car to 62 mph in just over four seconds. We can only make an educated guess as to what will power the RS3 sedan. Quattro all-wheel drive is a given, as is turbocharging. The European RS3 Sportback comes with a seven-speed dual-clutch that will probably make it to the US. In that car, the transmission is fed by a 2.5-liter turbocharged inline five-cylinder engine making 362 horsepower and 343 pound-feet of torque. Rumors suggest that Audi will make up for lost time by giving us the 400-hp inline-five that powers the new TT RS. These spy photos show a black RS3 sedan ripping around the Nurburgring, partially covered in camouflage. Through the camo we can see all of the basic hallmarks of Audi's RS line: cues like larger wheels, brakes, and a spoiler. The front has a hexagonal pattern in the grille that's typical of RS models, while the air intakes are larger and the chin spoiler looks to sit lower than the standard car's. From the side we can see different skirts and fixed brake calipers. Around back two large exhaust pipes replace those of the standard car, which may be the biggest indication that the vehicle is in fact the RS3. Models like the S3 and S4 have quad exhaust tips, while RS models feature two large exits like the ones on the 2016 RS3 Sportback. For 2017, Audi has made some changes to the A3 line, but we haven't heard or seen anything official from Audi regarding the 2017 RS3, be it Sportback or sedan. With the A3 and S3, the interior benefits from the company's fantastic virtual cockpit digital gauge cluster. The company also added some driver assistance features and refreshed the car visually with new front and rear facias.

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:

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.