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Audi rumored to buy Alfa Romeo, officials deny it

For more than two years, Volkswagen has been making public statements about its willingness to buy Alfa Romeo and quadruple the Italian brand's sales, and for just as long, Fiat CEO Sergio Marchionne has replied with some version of "Mr. Piëch, drop it." According to a report in Ward's Auto, all that jousting might be over: it claims that sources close to both Marchionne and Audi CEO Rupert Stadler admit that the two are in talks for Audi to buy not just Alfa Romeo, but a production plant in Italy. In fact, a final deal could possibly include partsmaker Magnetti Marelli.
Against that backdrop, a report by German news weekly Stern quotes a Fiat spokesmen as saying it doesn't comment on rumors and an Audi rep has said flatly that "There is no substance in the news." If a sale is being arranged, the timing would seem to point to how eager Fiat is to raise cash to complete its major initiatives. Even though Alfa Romeo continues to delay its return to the US, it just showed off the production version of the 4C at the Geneva Motor Show (shown above) and said that preferred Fiat dealerships here would get them. Then there's Alfa's recently concluded deal with Mazda to develop a roadster based on the next generation MX-5 Miata - a deal that would seem to help both the Italian and Japanese brands.
The monetary issues are troublesome, though. Fiat is taking a beating in the European market and its weak-kneed balance sheet is delaying gotta-have-it products like the Jeep Cherokee. Fiat has been talking to banks about getting money to buy the rest of Chrysler and those financial institutions have also raised issues about debt and cash reserves, and the nasty game of chess Fiat is playing with the United Auto Workers (and now the court system about the portion of Chrysler it doesn't own) could end up blowing another hole in Marchionne's plans. It is possible that this could finally have convinced Fiat to at least see how serious Audi's parent company, Volkswagen, is about buying Alfa Romeo. Or it could be just another rumor.

Audi stealthily tests RS4 Avant

With S3s, R8s and RS7s aplenty, Audi offers no shortage of performance models in North America. But one of our favorites is always kept just out of arm's reach. That of course is the RS4 Avant, and here we see Audi Quattro GmbH testing the latest version. Though it may look like a plain old S4 – and even wear S4 badges – the wider fenders and bigger wheels suggest that this is in fact a prototype for the upcoming RS4 Avant. For those unfamiliar, that nameplate connotes the best of all worlds within the A4 range: maximum power, maximum traction, and maximum luggage space. All the ingredients, in short, to make us wonder why anyone would rather drive a crossover. After the first-gen RS4 employed a twin-turbo V6, the subsequent two generations went with a 4.2-liter V8. This model, however, could adopt an electric turbocharger setup to give it all the power it needs (and then some) with a new form of hybrid setup that will soon be spreading across the industry. The bigger question on our mind, of course, is whether the new performance wagon will make the transatlantic voyage to North American showrooms. We're holding out hope that Ingolstadt may make a real run down American roads at the likes of the Mercedes-AMG C63 and BMW M3. Whether it brings the wagon body-style along with it is another matter entirely, but we can always dream. Related Video:

Audi replaces Mercedes as official vehicle supplier to the IOC

The automotive sponsor of the International Olympic Committee for the past 22 years has been Daimler-Benz. No more, as Audi has just signed a four-year deal to be the official auto supplier to the folks who keep the torch alight and on the move. Audi will supply vehicles for the IOC's headquarters in Lausanne, Switzerland and the organization's international events.
In case you're remembering all the stories about BMW and the London Olympics last summer and wondering where Mercedes-Benz was in all of that, the answer lies in the numerous mouths at the Olympic trough. The IOC is the organization and oversight body of the Olympics - much like the way the FIA oversees world motorsport. BMW, though, sponsored the London Organizing Committee for the Olympic Games, so during the games IOC reps rode in Benzes, LOCOG and its guest dignitaries rode in BMWs.
The Volkswagen Group has other ties with the Olympics as well: The Group will be the official vehicle partner for the winter Olympics in Sochi, Russia in 2014, and Audi currently partners the national Olympic federations of Germany, Finland, Russia and Switzerland. The press release below announcing the partnership has all the official details.