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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 to blitz 1.5M sales goal two years ahead of schedule

Audi doesn't seem to be having any trouble of hitting its relatively audacious sales goal of two million units by 2020 - it's already on pace to eclipse 1.5 million sales two years ahead of schedule. According to Reuters, the Volkswagen-owned brand rode a wave of sales in China and the US to pace the early goal, with 780,500 deliveries at the halfway point of 2013. Particularly hot models include the Q5 crossover seen above and A4 sedan. Unless things go poorly in the second half of the year, 1.5 million sales shouldn't be an issue.
That leaves it trailing BMW by just 24,000 units for the global luxury sales crown. If sales trends keep up, Audi will succeed in hitting its goal of two million units and besting its cross-country rival in Munich. Audi CEO Rupert Stadler smells blood, telling German newspaper Handelsblatt, ''We have overtaken Mercedes-Benz and we are now closer to BMW than ever before."

Refreshed A1 packs Audi's first three-cylinder gas engine [w/video]

Back in 2010, Audi debuted the diminutive A1, and it's sold over half a million of them since. Now, more than four years later, the German automaker has given its smallest and most accessible model a facelift and some updated equipment.
The latest version of the A1 benefits from a range of updates, including a sharpened take on the company's familiar styling with a reshaped single-frame grille, new bumpers front and rear as well as new wheel and color choices. But the biggest news is the introduction of Audi's first three-cylinder gasoline engine.
The turbocharged, direct-injected 1.0-liter three-pot churns out just 94 horsepower, but that's still six more than the previous base 1.2-liter four offered, all the while returning better fuel economy and emissions figures. Of course, that turbo three is not the only engine on offer, joining the 1.4-liter turbo four in 123- and 148-hp states of tune and the 113-hp 1.6-liter TDI. And of course there's still the 228-hp S1 performance model. Depending on specification, the engines are mated to a five- or six-speed manual, but can all be optioned with a seven-speed dual-clutch transmission as well.