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2017 Audi A5 First Drive

It might not look it, but behind the 2017 Audi A5's evolutionary styling update there's a new platform and a host of mechanical and technological upgrades that make it the most advanced offering in its class. We got to sample the new A5 on the windy roads outside of Porto, Portugal, which gave us an in-depth look at the car underneath the unremarkable exterior. The A5 may no longer be the haute couture choice in this segment Í­– that title goes to the Mercedes-Benz C-Class Coupe – but there isn't a bad line on the new car, and it's more creased and toned than before. Given the bulging hood and chunky C-pillar, we'd say its gym membership is paying off. This might look more like a mid-cycle update, but what's underneath is new: a scalable architecture known internally at VW Group as MLB Evo, an optional seven-speed dual-clutch gearbox, and the third-generation EA888 2.0-liter, four-cylinder turbocharged gasoline engine. This engine debuted in the A6 and is rated at 252 horsepower and 273 pound-feet of torque. That's a healthy 32 hp and 15 lb-ft more than the 2016 A5's 2.0-liter offered, and it showed on our spirited drive through Portugal's grape-growing region. A handful of A5s will leave the factory with six-speed manuals, but most buyers will find a new seven-speed dual-clutch transmission in place of last year's eight-speed conventional automatic. Audi worked hard to improve initial throttle response to eliminate the clunkiness endemic to torque-converter-free transmissions. In urban slogging, the gearbox does a very convincing impression of a traditional automatic. In sport mode, the transmission livens up and delivers the rapid-fire shifts we expect from this type of gearbox. We did not have the opportunity to sample the stick. Our test car had Audi's Euro-spec version of this engine, which utilizes both direct and port fuel injection. American models will forgo the latter. Brisk acceleration is matched by a subtle growl piped in from under the hood at higher rpm – about the only noise you'll hear. The A5 is astonishingly quiet. In fact, it was that quietness that encouraged us to leave the coupe in the Drive Select's comfort setting for much of our drive. Drive Select tweaks the car's steering, throttle response, and, on cars so equipped, the optional adaptive suspension. Truth be told, Comfort rides a little too plush and Dynamic a little too firm.

GM, Audi, Jaguar halt Russian sales amidst ruble's collapse

The value of Russia's ruble currency has sunk like a stone tossed in the Volga for much of the year, losing over 40 percent of its worth since June. The change is having bizarre effects on the auto industry there and leaving some automakers scrambling to adjust. According to Bloomberg, Russians are buying up luxury goods including automobiles at the moment to have a physical investment in case the ruble sinks further. However, with the money worth so little, the companies aren't making much from these transactions. Things are so dire that several automakers are temporarily ending deliveries until the situation stabilizes. According to Bloomberg, General Motors stopped sales on December 16 with no set date to start again. Audi did the same thing but with the intention to resume once it has adjusted model pricing. Jaguar Land Rover terminated business until December 19 to see how things changed. Toyota is increasing its pricing, as well, but keeping business open at the same time. Some automakers have subtly been reacting to the slumping Russian auto market all year. The moves have included Volkswagen cutting production by 30,000 units from its factory in Kaluga. Ford also got rid of 950 workers from two plants due to low demand. Some analysts have even speculated that the contracting industry and possibility of lower import duties into the country could cause companies to end their manufacturing in Russia completely.

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.