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Audi and Mercedes both outsell BMW in January

There won't be any celebrations in Munich this month, as BMW was outsold by arch-nemeses Audi and Mercedes-Benz. The Bavarian company finished behind Audi in January, which took the top spot for the first time since June of last year, Bloomberg reports. Ingolstadt rode high on a 10-percent bump in sales, while Mercedes saw a larger 14 percent increase. BMW, meanwhile, only saw a modest 6.3-percent sales increase last month, thanks in large part to its struggles in China. The company's sales there increased at about half the rate of its chief competitors, with a 7.9-percent jump to Mercedes and Audi's roughly 15-percent increases. Perhaps more worrying for BMW, though, is that this could become something of a trend for the company. According to Bloomberg, issues with Chinese dealers who cancelled orders over sales targets and bonuses combined with what the publication calls aging models, could spell bad news for the German marque. "This looks like a pretty significant decline in growth compared to Mercedes and Audi," Bankhaus Metzler analyst Juergen Pieper told Bloomberg. "I think this will continue during the next few months." News Source: BloombergImage Credit: Matthias Schrader / AP Earnings/Financials Audi BMW Mercedes-Benz

Volkswagen decides to keep Lamborghini and Ducati, transfers Bentley to Audi

Investors in the market for a high-end Italian manufacturer that peddles performance will need to keep looking. Volkswagen announced it will hang on to Lamborghini and Ducati in the foreseeable future. Executives in Wolfsburg, Germany, are making far-reaching changes to the Volkswagen Group to reboot it with a big focus on technology. Credible rumors claimed that the people in charge of the carmaker wanted to carve out Lamborghini — which owns Ducati — and ultimately list it, or at least a chunk of it, on the stock market in order to fast-track the group's electrification strategy. Going electric is expensive, so selling Lamborghini would have helped fund the expansion, and high-octane supercars don't easily go hand-in-hand with zero-emissions cars. "Volkswagen needs to change from a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering to a digital company that reliably operates millions of mobility devices worldwide," summed up Herbert Diess, the group's boss, during a September 2020 meeting. His team ultimately decided not to fully divest both brands. It's too early to tell whether part of Lamborghini will be listed on the stock market, as some insiders have suggested, or if those plans are off the table, too. Changes are coming to Bentley as well. While it's not being spun off either, it will fall under the Audi umbrella starting on March 1, 2021. Volkswagen explained linking the two companies will "allow for synergies to be achieved as part of the electrification strategy of the two premium brands," a statement which suggests they will share a growing number of components during the 2020s. Unverified rumors claim that Bentley will notably get its own version of an ultra-luxurious electric SUV code-named Landjet that Audi is currently developing. We've reached out to Bentley for more details, and we'll update this story if we learn more. Bugatti's future wasn't mentioned in the release; unconfirmed reports suggest it will be traded for a stake in Croatian start-up Rimac. Volkswagen's supervisory board also reaffirmed its support for Diess, who was appointed CEO in 2018 and who has played a significant role in the company's transformation. Finally, the board approved the development of what a statement refers to a future leading electric vehicle sold by the Volkswagen brand that will be developed and manufactured in Wolfsburg.

Audi supercar not yet approved, R4 not quite dead, still room for an MPV

According to a report by Autocar, all we thought we knew of the in-development Audi supercar we might not actually know. A piece in Car and Driver, not even a month old, said the diesel-hybrid halo car was in the design stages, would get the engine from the R18 E-Tron Quattro and its carbon fiber tub. Now we get word that that while the coupe is indeed being designed, it hasn't yet been signed off and there's no business case for it yet. Said business case, whenever it is built, is also dubious of the diesel aspect of the car at the moment - diesels aren't known for creating Pavlovian purchase responses in buyers in the two key markets of the US and China.
The report suggests that instead of a diesel, the 2014 Le Mans regulations changes "could swing the favour back towards petrol models," which would give the so-called Scorpion a better tie to racing technology. Of course, that also assumes that Audi would contest next year's Le Mans with a gas-powered car. If so, that would be an about-face on the original reasons for the halo sportscar in the first place.
In other news, seems Audi also believes it can slot another sportscar below the R8, it just needs to get the financials sorted. The R4 - a Porsche Boxster-sized roadster - that has been chattered about for years is still in on the table but appears a long way off. Company R&D chief Wolfgang Durheimer said it would need to be mid-engined and bring plenty of tech to separate itself from the TT, but mass-market price point is the catch as is the focus on other segments in the portfolio.