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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.

Suspended VW exec Hackenberg resigns in wake of scandal

Ulrich Hackenberg, father of the innovative modular architecture that underpins many modern Volkswagen and Audi products and a 30 year veteran of the giant company, has resigned his position as the lead engineer for the entire Volkswagen Group as well as his seat on Audi's management board, reports Automotive News. The resignation closes out a two-month suspension while the investigation into VW's deceptive emissions practices continues.The resignation follows the admission by Audi that the 3.0-liter TDI V6 engine was also fitted with emissions-control defeating software, like some of its four-cylinder TDI counterparts. In turn, this lead to changes in Audi's management structure. AN reports that Matthias Muller, who has already taken over Martin Winterkorn's position as VW Group CEO, will also be named chairman of the Audi brand.Hackenberg's successor was named as part of this announcement. Stephan Knirsch, who has lead engine development at the Audi division, will assume Hackenberg's roles as both board member for Audi in charge of technical development, and as the head for technical development across the whole group.Related Video:

2017 Audi S4 First Drive

For all its power and easy performance, the best thing about the last Audi S4 was its uncanny ability to act like a normal (but very high-spec) A4 for most of its life. Then, when you needed or wanted a bit more speed or a bit more grip, you pushed a button or opened the tap and it became something else. It became a thing with more grip, more poise, more focus, and more gristle, but the changeover between the two S4 characters was seamless. That doesn't seem to be the case with the new one. The latest, B9 A4 has been well received and is probably the best mid-sized premium car out there, so that should have left the S4 a simple job to become the best warmed-up premium mid-sizer. It hasn't quite happened like that. The spec sheet suggests the S4 should come out on top in the fight with the BMW 340i and the Mercedes-AMG C43, but the numbers aren't everything. The engine seems impressive on paper; the all-new EA838 3.0-liter turbocharged V6 was jointly developed with Porsche (and it's closely related to Porsche's next V8, with which it will share non-internal bits like the camshaft chain). The 60-degree V6 weighs 31 pounds less than the old S4's supercharged V6, and it's replete with variable valve timing and lift, centrally mounted fuel injectors, and both direct and indirect fuel injection. That gives it 354 horsepower at 5400-6400 rpm (up 6.5 percent) and 369 pound-feet of torque from 1,370 to 4,500 rpm. That gives it a peak 44 lb-ft higher than the old one, spread across a band 600 revs broader. At 2,000 rpm, where drivers live every traffic light, it has another 74 pound-feet. That's enough motivation to move to 62 mph in 4.7 seconds. There's a new all-wheel-drive system that usually shoots 60 percent of the torque to the back but can ramp that up to 85 percent when it needs to, or it can swing it around to fire more than 70 percent to the front axle. The category benchmarks suggest turbocharged 3.0-liter gasoline sixes are the thing to have, with the Mercedes-AMG C43 using one, the 340i BMW having one (though it's straight), and Maserati's Ghibli also using one. The oddball is Jaguar's XE S, which uses a supercharger. You know, like Audi just ditched. The S4 trumps all but the C43 on power (the nine-speed Benz has 362 hp). While it ties the Ghibli for torque, it again trails the Benz (by 15 lb-ft) though its torque peak hits far earlier (the Benz waits until 2,000 rpm).