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VW may make Bentley a subsidiary of Audi

FRANKFURT — Volkswagen plans to make British luxury carmaker Bentley a subsidiary of its Audi division as it seeks economies of scale among its top-end brands, German trade publication Automobilwoche reported. Bentley, for now overseen by the head of VW's Porsche business, Oliver Blume, will from next year be part of Audi, where VW group Chief Executive Herbert Diess believes it has more potential, Automobilwoche cited company sources as saying. Synergies could include using Audi technology for a new Bentley SUV, it added. Volkswagen, which declined to comment on the report, is reviewing the future of its high-performance brands Lamborghini, Bugatti and Ducati motorcycles as part of broader quest for more economies of scale as it shifts to mass producing electric cars. Sources familiar with the matter told Reuters this month that Volkswagen was working on plans to prepare Lamborghini for a stock market listing. Related Video: Audi Bentley Volkswagen

Spy video shows Audi RS4 Avant twin-turbo V6 lapping the Nurburgring

Nurburgring testing season is in full swing, and Audi took some of its newest upcoming models for a spin. That means our first listen to Ingolstadt's new, turbocharged RS engine under the hood of the RS4. Based off the updated A4, the new RS4 Avant is a return to the performance variant's roots. The original RS4 (and early versions of the S4) used twin-turbo V6 power, although more recent models stuffed the beloved 4.2-liter V8 under the hood. The turbo engine in the new model is also rumored to find its way into the back of the R8 supercar. We don't know horsepower figures yet, but with 450 horsepower as the benchmark from the last RS4 we expect big numbers from the six-cylinder. The new engine might be just as powerful as the old V8, but as you'll see in the video, it's missing the phenomenal growl that the 4.2-liter made as it revved to the sky. This new car is quiet, especially compared to the ear-tingling five-cylinder note of the TT RS testing alongside the wagon. A quiet performance car is fine if you like stealth, but with its flared wheel arches, oval exhausts, and big wheels, the RS4 is a car that's anything but subtle. Related Video: News Source: Car Spy News via YouTube Spy Photos Audi Wagon Luxury Performance Videos

VW fix would have cost $335 per vehicle

Since the Volkswagen diesel kerfuffle began, Bosch, the world's largest auto supplier, has been hooked up to a bullhorn trying to make sure everyone knows its side of the story. Bosch supplied VW with the engine management testing software, including delivery and metering modules, that VW then used to skirt emissions laws in the US. Bosch told VW in 2007 that it was illegal to use the software in cars it planned to sell yet VW did it anyway, according to reports coming out in German newspapers Bild am Sonntag and Frankfurter Allgemeine Zeitung. That first warning came two years after VW started developing the small-displacement diesel, around the time that the two men pushing its development, then-brand chief Wolfgang Bernhard and engineer Rudolf Krebs, were telling their superiors that the engine needed AdBlue urea injection to pass US emissions. VW cost controllers wouldn't approve the AdBlue solution because it would add 300 euros ($335 US) to the cost of the vehicle. Bernhard and Krebs left the same year that Bosch advised VW about the software, two years before the engine went into production. That's when things get cloudy. A report in Automotive News says that when Martin Winterkorn took over in 2007 as head of the VW Group and brand, he asked Ulrich Hackenberg and Wolfgang Hatz to keep working on the engine, and "[the] engine then ended up in VW Group diesels" with that problematic software still intact. No one has yet pointed any fingers at this latter chain of command, but like a game of Clue, right now they're the professors in the library holding the candlesticks. Warnings didn't only come from the supplier: Frankfurter says VW's initial investigation has found that an engineer issued the same caution to the company in 2011. Neither Bosch nor VW would comment on the reports.