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Rimac is reportedly close to buying Bugatti from the Volkswagen Group

Croatia-based Rimac is finalizing a deal to purchase Bugatti from the Volkswagen Group, according to an unverified report. If the rumor is accurate, the sale would propel Rimac to the top of the automotive industry, guarantee that Bugatti's future is electric, and mark the beginning of Volkswagen's efforts to divest its empire. Executives in Wolfsburg gave the deal the green light in September 2020, according to anonymous sources who spoke to British magazine Car, but the company's supervisory board hasn't approved it yet. Selling the French company isn't as simple as sending company founder Mate Rimac an email with an account number. Insiders explained Volkswagen would likely trade Bugatti and all of its assets for a significant stake in Rimac that would be transferred directly to Porsche, which already owns 15.5% of the brand. Officials hope to increase that figure to about 49%, meaning Bugatti is theoretically worth about 33.5% of Rimac, which was founded in 2009. Bugatti told Autoblog it can't comment on speculation. Mate Rimac gave us a similar answer. Rumors of a Bugatti sale have hovered around the automotive industry for several years, and they've never materialized. In theory, spinning off the brand would be relatively easy because it's not as deeply integrated into the Volkswagen Group as its sister companies. It doesn't share its W16 engine with another carmaker, for example. And yet, Car speculates Lamborghini, SEAT, ItalDesign, Bentley, and Ducati will also be sold in the coming years, leaving Volkswagen with its namesake division, Skoda, Audi, Porsche, Scania, and MAN. Volkswagen is having an estate sale to fund the development of electric, autonomous, and digital technologies. Its downsizing will send ripples through the auto industry. Porsche could move upmarket if it doesn't have to worry about stepping on Lamborghini's toes, for example. Spinoffs are always risky, so some companies may not survive if they're not bolstered by economies of scale. As of writing, there's no word on who will pick up the brands being divested under this scenario. And, keep in mind none of this is official. Volkswagen hasn't commented on the report. We'll update this developing story as more information becomes available.

That time when VW thought its diesels were holier than hybrids

When it comes to its diesel engines, Volkswagen was publicly trying to work the regulation system as far back as 2011. That's when the Obama Administration announced stricter US greenhouse-gas emissions standards for 2025. At the time, VW was saying its diesel engines were as clean or even cleaner than hybrids and some plug-in vehicles, The New York Times says, citing former Environmental Protection Agency (EPA) officer Margo Oge. VW did indeed boycott Obama's announcement of the 2025 Corporate Average Fuel Economy (CAFE) standards four years ago. The reason given at the time was that VW's attempt for its diesel engines to get special consideration and extra credits for fulfilling the emissions mandate was ultimately rejected by the EPA. Oge said VW's US executives were conciliatory but the automaker's German officials were "arrogant" in their belief that diesel technology was far superior, from an emissions standpoint, than hybrids or plug-ins. As we know now, that was not the case. Last month, we learned that VW fitted as many as 11 million vehicles around the world with software that programmed its diesel engines to show artificially low emissions levels during testing. In the ongoing fallout, VW has set aside $7.3 billion to address the scandal and the CEO resigned. New VW CEO Matthias Muller says recalls on the diesels in question may go into effect as soon as January in Europe. Meanwhile, among other indignities, Green Car Journal rescinded Green Car of the Year Awards it had bestowed on the 2009 Jetta TDI and 2010 Audi A3 TDI, while Volkswagen's Stock was delisted from the Dow Jones Sustainability Index. News Source: New York TimesImage Credit: Matt Cardy / Getty Images Government/Legal Green Read This Volkswagen Emissions Diesel Vehicles CAFE standards vw diesel scandal Barack Obama

Volkswagen Beetle Special Edition Concepts consider some colorful possibilities

Volkswagen is using the 2015 New York Auto Show as an opportunity to check consumer reactions to possible special editions of the Beetle. The company's concepts are each aimed at different market niches, and they play up the idea of the car as a fashion accessory as much as a mode of transportation. VW does the most work to the Beetle R-Line concept for performance-minded buyers. Covered in Oryx White Pearl, the model is 0.6-inches wider than stock and wears a more aggressive front bumper with larger intakes. There's even a vent at the tip of the hood sort of like a Porsche 911 GT3. The pearlescent paint really pops thanks to some gloss black trim that covers a rear diffuser and the edges of the spoiler. For the other three concepts, VW tests out some new colors and trim for the Beetle. For example, the company thinks there's demand in the US and China for pink to be added to the palette, and the Pink Color Edition tries that out with a metallic shade. The Convertible Wave is painted in Habanero Orange Metallic but also has retro touches like chrome mirror caps, houndstooth fabric for the seats and a wood dashboard. Finally, the Convertible Denim takes inspiration from a pair of jeans. For a closer look at the colorful members of this quartet check out the gallery from the floor of the New York show. Featured Gallery Volkswagen Beetle Special Edition Concepts: New York 2015 View 15 Photos Related Gallery Volkswagen Beetle Concepts View 12 Photos Image Credit: Live photos copyright 2015 Drew Phillips / AOL Design/Style New York Auto Show Volkswagen Convertible Hatchback Concept Cars Videos 2015 ny auto show