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Audi A4 TDI plans scrapped for the US

It comes as no great surprise, but Audi of America president Scott Keogh told Automotive News that the automaker has ditched plans to offer the 2.0-liter TDI-powered A4 here in the US. Despite what you may be thinking, Keogh claims the decision isn't based on the ongoing talks between parent company Volkswagen and US regulators regarding the diesel emissions scandal. (Currently, Audi and Volkswagen are awaiting EPA certification for their diesel engines in the US.) The reason, he says, is that the demand for diesel sedans is low here, particularly when compared to the company's lineup of crossovers. "The marketplace speaks, we listen to the marketplace, and the marketplace told us, 'Go with SUVs,'" says Keogh, presumably in his usual straightforward, assuring manner. That's not to say, though, that one doesn't have an effect on the other. We've already seen that the scandal has had an impact on sales. Now, in a country where many were already under the assumption that diesel engines were dirty and noisy, it's no revelation that automakers are less than enthusiastic about expanding their grease-burning offerings. While the news is a bit of a bummer for those of us who have long hoped for more widespread diesel options here in the States (and for whom the whole Dieselgate debacle is downright depressing), there's still plenty to look forward to in terms of greener, cleaner Audis. At the A3 E-Tron event late last year, Keogh was bullish on EVs, promising that it was just the first step in a "substantial commitment." Audi's plan is, in Keogh's words, to "start with the plugs, come in with the full BEVs and then keep rolling from there." He repeated these assurances at the LA Auto show, saying that he expects 20 to 25 percent of Audi's sales to be plug-in vehicles by 2025. Plus, despite the whole diesel thing (which, to be fair, affects far fewer Audi cars than Volkswagens), Audi has been killing it lately. February sales marked a streak of 62 consecutive months of record sales in the US. For an automaker that is repeatedly saying that it believes the future is in electrification, this bodes well for us. Related Video:

The hottest modern sports cars rendered as rally racers

The modern-day World Rally Championship a monumental amount of fun to watch – I should know, as I recently was lucky enough to head to the UK to watch WRC Wales Rally GB – but even the most monstrous of the current WRC cars are based on fairly pedestrian European hatchbacks. Back in the heyday of rally, the Group B era in the 1980s, much hotter cars were the basis of even more incredible competition machines, for the most part. Take the exotic Ford RS200, or the Lancia Delta S4 with its twin-charged engine. And the hatchback-based Group B cars were bonkers, too. So what would some of our favorite modern cars look like if Group B had never ended? A British site named CarWow hired an artist to reimagine everything from the Rolls-Royce Wraith to the Porsche 911 as a retro-inspired rally car, and they were kind enough to let us share the results in the gallery above. The gallery features an Alfa Romeo Giulia in Martini livery, an Audi TT in classic Ur-Quattro colors, a Fiat 500 Abarth sporting massive flares and a hood blister full of auxiliary lights, a new Ford Mustang in RS200 livery, a Lancia Delta in Alitalia colors, a Porsche 911 in Rothmans livery, a Renault-Alpine in classic blue, a Rolls-Royce Wraith tribute to the Jules cologne Corniche Coupe, and a relatively modern-looking VW Touran. So far, the favorite around the office is the incredible Mercedes-Benz S-Class that is an homage to the wonderful 300 SEL 6.8 AMG "Red Pig" that essentially put AMG on the map. Check out the gallery above and see which one you like the best. Related Video:

Why Audi is staking its future on electric SUVs

This much we know: SUVs and crossovers sell like hotcakes. The body style has become such a juggernaut that for the first time in recorded history, sport utes beat out sedans this year to score the biggest slice of the luxury pie. Love 'em or hate 'em, SUVs are here to stay, and carmakers are investing more than ever in the segment. Sport utility vehicles also played a bigger role than you might think in making Audi relevant in the US, and based on what we learned during a sit-down with Audi of America president Scott Keogh at the Paris Motor Show, their role is only going to continue to grow at the automaker. Last year, the brand sold 202,202 cars in the States, capping off 60 consecutive months of record sales. But it's not enough to focus on traditional SUVs like the Q5, which was launched on the heels of the global economic meltdown in a tiny small segment of around 160,000 vehicles and has since ballooned to over 400,000 units. The Q5 has scored 80 percent of its buyers from conquest, and a new plant in Puebla, Mexico, promises to churn even more units to the US and the world. Still, tackling the future head-on can be like wrestling an eel – an elusive, almost impossible-to-execute challenge – and Audi is betting a huge part of that success will be the production version of the E-Tron Quattro Concept that debuted last year in Frankfurt. Internally referred to as the C Bev, this battery-powered SUV claims a 311-mile range, and might as well be nicknamed the Tesla Model X Killer. "If you look at where this car migrated from," Keogh says, "it started as a European-ish city car, and then it migrated into a sedan-ish sportback-y type thing, and then we pushed very aggressively to make it an SUV." Keogh says the vehicle will hit showrooms "after 2018." The SUV layout naturally lends itself to batteries, but it also boils down to a simple bureaucratic advantage: "We get [government CO2 and fuel economy] credits for volume," says Keogh. "It's not just enough for a car to be there, it's got to be a car that a lot of people want to buy." Sized between a Q5 and a Q7, the E-Tron Quattro resides in a target-rich environment, a 600,000 - 700,000 unit segment. Add Audi's goals of electrifying 25 percent of its lineup by 2025, and a high volume, medium/large SUV simply makes sense.