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Ducati is not for sale according to VW supervisory board

Volkswagen's planned sale of motorcycle brand Ducati and transmission maker Renk currently has no majority backing on the carmaker's supervisory board, with opponents to asset sales feeling invigorated by the group's strong results. Europe's largest automaker has tasked banks to evaluate options for Ducati and Renk including divesting the two divisions as it aims to streamline operations to help fund a post-dieselgate strategic overhaul. Volkswagen has been reviewing its portfolio of assets and brands since announcing in June 2016 a multi-billion-euro shift to electric cars and new mobility services as part of its so-called Strategy 2025. Five bidders have been shortlisted to buy Ducati, including Italy's Benetton family, with offers received valuing the brand at 1.3 billion-1.5 billion euros ($1.76 billion), a source said on Saturday. But VW's labour leaders, occupying half the seats on the 20-member supervisory board which decides on asset sales, resist a sale of Ducati and Renk without compelling financial reasons. "The employee representatives on Volkswagen's supervisory board will neither approve a sale of Ducati, nor one of Renk or MAN Diesel & Turbo," a spokesman for VW group's works council told Reuters late on Saturday. "Everyone who can read the VW half-year results should know: We don't need money and our subsidiaries are not up for grabs by bargain hunters." Six-month operating profit at VW group jumped 19 percent to 8.9 billion euros, the carmaker said on Thursday, as cost cuts and R&D improvements at the core namesake brand earned VW a respite from the billions of euros in costs for fines, vehicle refits and compensation related to its dieselgate scandal. One source at VW said that given strong union opposition, VW is now reviewing the plan to sell Ducati as it doesn't want to risk working with labour on implementing a hard-fought turnaround plan for the VW brand, seen as crucial by investors. Though Ducati is owned by VW's luxury brand Audi, the VW group's supervisory board has to approve a possible sale. Audi declined comment. The billionaire Porsche and Piech families, controlling 52 percent of voting shares in VW and holding four supervisory board seats, do not support selling Ducati or Renk, two other sources at VW group said. A spokesman for Porsche SE, the family's holding company, declined comment.

Porsche says it found 'irregular' software as Germany recalls diesel Cayenne

BERLIN - German Transport Minister Alexander Dobrindt on Thursday announced a recall of Porsche Cayenne models equipped with 3-liter diesel engines after finding potentially illegal emissions controlling software in the vehicles. Dobrindt told reporters he was withdrawing certification for the vehicles, which will need to undergo a software update to regain legal status. Sports car maker Porsche AG is owned by Volkswagen, which in 2015 admitted to systematic manipulation of engine management software to cheat emissions tests. Porsche on Thursday said it had discovered "irregular" engine management software during an internal probe into emissions. Porsche also said it had agreed to recall the vehicles to fix the problem. "The producer will of course bear 100 percent of the costs," Dobrindt said. "There is no explanation why this software was in this vehicle." The minister said: "We have examined Porsche Cayenne vehicles of the 3 liter TDI Euro 6 Mark - during tests these vehicles deploy a so-called defense strategy, which isn't activated in real traffic." "In our view that is a kind of test recognition, which we regard as an impermissible deactivation strategy." "Even if there is a modern exhaust gas cleaning system in these vehicles, if this software is nonetheless there it is illegal, does not meet the legal requirements and needs to be removed," Dobrindt said. He also said that Porsche would quickly be in a position to bring the software into conformity with the law. Dobrindt also said there were some 7,500 vehicles of this type certified in Germany and some 22,000 certified in Europe. "We don't know how many are with dealers. These are the cars that fall under the certification ban." The Porsche Cayenne model shares components with a sister model, the Volkswagen Touareg. Asked about Volkswagen's Touareg model, Dobrindt said: "On the technical question, it is assumed that this vehicle has a similar parameter set but identical construction does not mean that the same software was used in it but it is assumed that the same software was used." He said the Transport Ministry was, however, checking that and a hearing with Volkswagen would show whether that was the case or not, adding: "The probability is high." Volkswagen CFO Frank Witter had no immediate comment about the Porsche recall on a VW earnings call also held on Thursday.

HERE's Real-Time Traffic pools live data from Audi, BMW Mercedes cars

Remember last week's news that German automakers were being accused of collusion? Here's a case where working together might pay off for drivers. Mapping expert HERE is launching a Real-Time Traffic service that pulls aggregated data from sensors in Audi, BMW and Mercedes-Benz vehicles that are actually out driving the road, making it the first commercial traffic service of its kind that collects real-time information from vehicles from competing carmakers, according to HERE. The car companies involved are actually all part-owners of HERE, however, after the mapping business was spun out of Nokia in 2015 and sold to the competing automakers as a joint venture. The HERE Real-Time Service is available to any customers across any industry, however, and boasts big improvements in features including traffic flow data, with a reach that extends to over 60 countries. In over 30 of the countries on that list, HERE also offers Traffic Safety Warning information, which will identify incidents on the road, as measured by hard-braking data. This allows real-time notifications to vehicles that could potentially prevent the worsening of these accidents. HERE is also in the process of adding more commercial vehicles as data sources for the Real-Time Traffic function, with "millions" of active vehicles in terms of consumer Audi, BMW and Mercedes-Benz vehicles on the road already. Clients for the service could include autonomous car technology companies, but also current Advanced Driver Assistance Systems (ADAS) as well as ride-hailing companies, urban transit authorities, city planners and logistics providers, to name a few.Written by Darrell Etherington for TechCrunch.Related Video:

German automakers' stocks fall as EU investigates collusion

BERLIN/FRANKFURT - Volkswagen will hold a special supervisory board meeting on Wednesday to discuss allegations that German carmakers operated a wide-ranging cartel, a source familiar with the matter said on Monday. The European Commission said on Saturday antitrust regulators were investigating a possible German auto industry cartel following a tipoff. At stake is whether carmakers VW, Audi, Porsche, Mercedes and BMW used German auto industry committees to discuss pricing of components and technologies, and whether such talks constituted anti-competitive behavior. A VW spokesman confirmed an extraordinary supervisory board meeting would be held on Wednesday but declined to give details. German auto stocks took a hit in early trading on Monday, weighed down by uncertainty over possible antitrust fines after European regulators said they were probing cartel allegations. VW shares were down 2.8 percent, with Daimler and BMW down 3.4 percent and 2.5 percent respectively, lagging the blue-chip DAX index, which was 0.7 percent lower. Exane BNP Paribas automotive analyst Stuart Pearson said little was known about the allegations, but no signs had emerged about fixing prices charged to consumers. "More ugly details could yet emerge, leaving German manufacturers - and the EU auto sector - still firmly in the sin bin for now," he added. The car industry has been hit with billion-euro fines on both sides of the Atlantic in recent years for cartels related to various parts such as lighting systems, engine coolers and bearings. The industry's record on exhaust emissions is also under close scrutiny after VW admitted in September 2015 to cheating U.S. diesel emissions tests and investigations have shown many vehicles exceeding pollution limits outside of testing labs. On Friday, German magazine Der Spiegel said VW, its Audi and Porsche brands, Mercedes-owner Daimler and BMW may have colluded to fix prices on components, including of diesel emissions treatment systems, using industry committees. Spiegel said the talks also led to the use of smaller tanks containing AdBlue, a urea-based liquid needed to help filter nitrogen oxides (NOx) from diesel emissions. Larger tanks would have been more expensive, the magazine said. Auto industry experts, however, have said the effectiveness of exhaust filtering systems does not depend on the size of an AdBlue Tank. BMW, for example, has equipped its cars with urea injection as well as a NOx-storage catalytic converter.

Automakers agree to clean up diesels to avoid ban in German cities

BERLIN -- Auto industry officials and politicians in Germany have agreed to clean up diesel vehicles through software updates as part of a rescue plan for avoiding diesel bans in cities, industry and government sources said on Friday. The costs of the rescue plan amount to under 2 billion ($2.33 billion) euros for cars in Germany, with the auto industry agreeing to shoulder the expense of about 100 euros per car, the sources said. After Volkswagen Group confessed to emissions-test cheating in 2015, the entire auto industry has come under scrutiny for producing nitrogen oxide emissions in diesel cars, which are blamed for causing respiratory disease. Audi, a division of Volkswagen Group, said it would update engine software on up to 850,000 diesel cars. The refit of six and eight cylinder engines will be free of charge for all customers, Audi said. The service will also be offered to Porsche- and Volkswagen- branded cars using the same six- and eight-cylinder engines, Audi said. Earlier this week, Porsche's CEO was quoted as saying the brand may abandon diesel engines as its electric cars go to market, and Mercedes announced a plan similar to Audi's, in which it will recall 3 million diesel cars in Germany for a $255 million engine software fix. Diesel cars from all domestic and foreign car brands that conform to the latest emissions standards, Euro-6 and Euro-5, will be updated, the sources said. The plan is set to be presented at the beginning of August. With the software updates, the auto industry is able to cut nitrogen oxide pollution by about 20 percent, the sources said. A committee will be set up to measure the impact of updating diesel cars on individual communities and cities, with a view to averting bans of diesel cars, the sources said. Auto industry executives and German Transport Minister Alexander Dobrindt are due to discuss diesel pollution at a summit on Aug. 2. Reporting by Arno SchuetzeRelated Video: Government/Legal Green Audi BMW Mercedes-Benz Porsche Volkswagen Diesel Vehicles dieselgate diesel emissions

VW has received several tentative bids for Ducati

Italy's Benetton family is vying with motorbike firms and buyout funds for control of Italian motorcycle brand Ducati, which is being sold by Germany's Volkswagen, sources involved in the process told Reuters. Volkswagen, whose Audi division controls Ducati, has received several tentative bids with the Benetton family's investment vehicle Edizione Holding valuing the Monster motorbike maker at $1.2 billion, one of the sources said. As well as Edizione Holding, U.S. buyout fund Bain Capital, which owns a stake in Ski-Doo snowmobiles maker BRB, and two Indian motorbike firms, Eicher Motors and Bajaj Auto, have also bid for Ducati, the sources said. Indian carmaker Eicher controls Royal Enfield, a motorcycle brand established in 1893 which ranks as one of the oldest. Strategic bidders also include U.S. automotive firm Polaris Industries, which earlier this year said it would wind down its struggling Victory Motorcycle brand. A shortlist of bidders for a second stage of the auction could be selected as soon as Saturday, two of the sources said. Volkswagen adviser Evercore has a long list of bidders including private equity funds such as Ducati's previous owner Investindustrial, CVC Capital Partners, Advent and PAI, all hoping to outbid industry players, the sources said. If it gets to the second round, Edizione Holding could seek to form a consortium with a financial investor, two of the sources said, in a bid to secure control of Ducati, whose racers have won the Superbike world championship 14 times, with Carl Fogarty and Troy Bayliss its most successful riders. Audi, Edizione Holding, Investindustrial, Advent and PAI declined to comment, while the other interested groups were not immediately available for comment. PRICING CHALLENGES For some buyout funds, Ducati's valuation of up to $1.4 billion – which sources said is based on a multiple of more than 10 times its core earnings of roughly 100 million euros – is a tall order as they lack the synergies that some motorbike makers could achieve. But Investindustrial founder Andrea Bonomi, who sold Ducati to Audi for about 860 million euros in 2012, is serious about a comeback, one of the sources said. China's Loncin Motor was among a group of industry players that initially showed interest in Ducati, alongside Harley-Davidson. The latter has, however, decided against making a bid due to Ducati's price tag, while it could not be established if Loncin Motor had carried on bidding.

2018 Audi RS5 First Drive | Boosted for your enjoyment

Spoiler alert: if you dig snorty, long-winded, naturally breathing V8s, you'll have to add the 2018 Audi RS5 to the long list of cars abandoning the setup. Silver lining: if you like heady acceleration, unraveling twisty roads, and gobbling endless stretches of lonely tarmac, the new RS5 offers considerable gains over its big-engined predecessor. Bigger, Lighter, Gruntier Audi's (slightly) nastier looking new coupe has gained 0.6 inches of width and wheelbase and 2.9 inches of length but lost 132 pounds of mass along the way. Even better, the smaller 2.9-liter twin-turbo V6—the same one found in the Porsche Panamera—produces the same 450 horsepower as before, but gains a thumping 125 lb-ft of torque over the old V8, bringing the grand total of twist to 442 lb-ft. As with the previous RS5 you can't get a manual, but this time Audi swaps their signature dual-clutch transmission with an 8-speed torque converter unit from ZF. The reasoning is sound: the DSG 'box couldn't handle the engine's output, which produces more torque than the R8's mighty V10 – #bigtwistproblems. The RS5's weight loss stems from strategic use of aluminum and the loss of the stonking V8 (ditching it for the twin-turbo V6 saved 68 pounds alone). Weight distribution is, of course, also aided by the lighter front end, and the rear trapezoidal suspension setup has been supplanted with a five-link arrangement for smoother ride and sharper handling. Interior space also benefits from the larger footprint, with rear seat legroom benefiting most from the roomier dimensions. Behind the Wheel The roads from Toulouse, France to the tiny principality of Andorra offer contrasting extremes, from arrow-straight superslab to ultra-technical twisties – an excellent test of the RS5's performance repertoire. The updated cabin presents Audi's typically understated style, with available honeycomb top-stitched leather seats that are supportive but not so tight as to be constricting. HVAC slats form a continuous extension across the dashboard (a la Q7), and the steering wheel and shifter can be trimmed in either perforated leather or Alcantara. The first thing you'll notice in the RS5 are the low frequency sounds, which round out the otherwise muted engine noises.

Audi's electric E-Tron Quattro spied for first time in testing

Last October, Audi's chairman said the company would be launching its first mainstream full electric car: the E-Tron Quattro crossover. The car was first shown in 2015 as a concept, and now we got our first glimpse of a production version in testing, thanks to one of our spy photographers. From the looks of it, it won't stray far from the concept. Up front, the E-Tron has the same square-jawed hexagonal grille as the concept, and it's flanked by headlights similar to those of the new A8. It does differ from the concept a bit in the pattern of the grille. Instead of the odd horizontal slats, it has large vertical bars that were first shown on the Audi Q8 concept. The grille in the lower bumper is also a little larger and more simplified than the concept, and the hood vents have disappeared. The side profile continues to draw from the E-Tron concept. It looks more like a lifted wagon than a traditional, upright crossover. The heavy use of black plastic cladding and wheel arches also is nearly identical to the concept. It should also make the E-Tron look right at home next to the A4 Allroad. At the back, the E-Tron also retains its fairly raked rear window. There has been some simplification. It seems the full-width taillights have disappeared in favor of more conventional separate lamps. The polished aluminum faux skid plate in the rear bumper has also been traded for black plastic. We will probably see the production version of the E-Tron within a year. Audi already confirmed that it would begin production in 2018 at a factory in Brussels, Belgium, and it will launch a new line of EVs for the company. When the concept was shown, Audi said the E-Tron would produce 429 horsepower from three electric motors and have a range of 311 miles. Audi also claimed that with a powerful enough charger, it could recharge fully in 50 minutes. There's a decent chance those numbers won't change too much. The charging capability might not be there, but the power and range would make the E-Tron Quattro a close competitor to the Tesla Model S, which gets under 300 miles of range with the 75 models, and over 300 with the Model S 100s. Related Video: Featured Gallery Audi E-Tron Quattro View 11 Photos Image Credit: CarPix Green Spy Photos Audi Technology Emerging Technologies Crossover SUV Wagon Electric Future Vehicles Luxury audi e-tron Audi e-tron Concept audi e-tron quattro concept

Audi AI: an important step forward in autonomy

Those who have visions of reading a book or watching a movie while sitting in traffic, as you might do on an airplane, are closer than ever to reaching their own version of automotive nirvana. We're still not there, but Audi's latest A8 brings us right up to the precipice of actual autonomy that you can program to self-park in your garage. Audi says its new A8 will be the first vehicle to deliver Level 3 autonomy. That means the driver can take his or her hands off the steering wheel and stop paying attention, at least when a specific set of circumstances are met. First, Audi's AI traffic jam pilot only works at speeds of up to 37.3 miles per hour. In other words, it's meant for those times where you're sitting in traffic. Audi believes that the first commercially available self-driving applications will be relied on for circumstances when a driver's time is better spent elsewhere, like when you're in bumper-to-bumper traffic on the freeway. Second, that freeway has to be a divided highway with a physical barrier from oncoming vehicles. A large swath of grass would work, as would a concrete wall. The new A8 uses radar, a front camera, ultrasonic sensors, and a laser scanner – the first in a production vehicle – to scan its surroundings. These various images are compiled by a central driver assistance controller that Audi calls zFAS. We'd have gone with Zaphod Beeblebrox, but nobody asked. Third, Audi needs the approval and cooperation of the various governments and authorities in which it sells the A8. "The statutory framework will need to be clarified in each individual market, along with the country-specific definition of the application and testing of the system," says Audi. Where does that leave the US? Audi isn't yet sure, but discussions are apparently under way. We're not exactly holding our breath. If all of those key circumstances are met, Audi's artificial intelligence system can be activated using the AI button on the center console. Audi will accept all legal responsibility when the car is driving itself. Starting, steering, acceleration, and braking are all taken over by the car, and the driver is free to perform other tasks. Theoretically, at least, because nobody outside of Audi has actually given the AI tech a spin. "As soon as the system reaches its limits," says Audi, it will hand driving duties back off to the driver.

Next-gen Audi S7 looking hot in Southern Europe

Development on the next-gen Audi S7 is in full swing. The handsome hatchback is still popular, even if it is starting to show its age, so we have high hopes for the new model. We have some new spy photos of the car performing hot-weather testing in Southern Europe. We don't have many details or a firm release date, but there are a few things we can pull from these pics. The new model looks like it will retain the same general shape as the current one. That's a good thing, as the A7 is one of the best looking vehicles on the market. The long and flowing roof, frameless doors, and long wheelbase all look to be present. There are hints of the Audi R8 from the A-pillar forward while the large grille looks exactly like the on new Audi A8. Many of these design elements are straight off of the Audi Prologue concept from a few years back. Like other Audi S models, the S7 has a wide bumper with large intakes at the bottom corners. A chin spoiler appears to channel air down under the car. Around the side, we can see big wheels and brakes. There are side skirts along the bottom. Out back, it has the requisite quad exhaust tip, a dead giveaway that this is an S model. Lighting both front and rear appears to be LED. What rests under the hood is arguably the car's biggest mystery. We can count on Quattro all-wheel drive and an eight-speed automatic, but we don't know if it will have a turbocharged V6 or V8 under the hood. At this point, both seem equally likely. Horsepower and torque should both be in the mid-400 range while 0-60 mph times should be around 4.5 seconds. Look for more news this fall. Related Video: Featured Gallery Audi S7 Spy Shots View 12 Photos Image Credit: CarPix Spy Photos Audi Luxury audi s7