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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.

2015 Audi A3

The five-door Audi A3 hatchback, on sale in the States since the 2006 model year, never earned the respect it deserved. Despite possessing the automaker's well-regarded build quality and a range of strong powerplants (including an excellent diesel option), the entry-level model always played second fiddle to the rest of the Audi lineup, suffering from less innovative technologies and fewer premium options on its list. Many buyers considered it inferior to the rest of the models in the company's showroom. But those misconceptions could be about to change, as Audi is in the midst of introducing its third-generation A3 family to the States with expectations that the range will finally align with the rest of its portfolio.
First to arrive is this new sedan, notable as it is the first time the A3 has been offered as a compact four door. The new bodystyle is positioned as a premium C-segment offering, with its most obvious competitor being the new Mercedes-Benz CLA-Class (BMW has not officially announced a 2 Series Gran Coupe, which would be the third entrant in the segment). The automaker says its "A3/S3 models will be among the most technically advanced Audi products around" and there will be "no sacrificing Audi craftsmanship and premium appointments." To put the automaker's claims to the test, we spent a week with this new sedan in Southern California.

Audi S1 nearly ready to rocket euros out of your pocket

Audi was out testing its upcoming S1 on the streets of Germany when our trusty spy photographers snapped the new, all-wheel-drive hot hatch that's set to succeed the limited-edition A1 Quattro.
Unlike the A1 Quattro, the S1 should sport a much less aggressive look overall. As shown in the spy shots, its wheel wells lack the meaty flairs of its predecessor while its rear wing is much more subdued. The wheels are more in line with what we expect from Audi's S models and its higher ride height is more conducive to common things like steep driveways and speed bumps that the 333-unit A1 Quattro might not encounter.
According to our spies, the S1 should hit the European market with anywhere from 220 to 250 horsepower, making it considerably more potent than competitors like the Ford Fiesta ST or Polo GTI from its parent company, Volkswagen (although it'll likely arrive at a considerably higher price than either of those pocket rockets). On the high end, that's roughly equal to the 252 ponies generated by the 2.0-liter, turbocharged four in the A1 Quattro