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Audi readying 650-hp Sport Quattro Concept for Frankfurt

Remember Audi's perfectly lovely Quattro Concept from the 2010 Paris Motor Show? Of course you do. The latter-day Ur-Quattro is laser-etched in our brains as well - and not just because Audi was kind enough to offer our man Michael Harley a mountain drive of its seven-figure showcar. At the time, Audi hinted that the coupe might have a showroom future, but the gossip pipeline has long since gone dry, leading us to believe that the car's production hopes had soured.
That 2010 concept was powered by a 2.5-liter five-cylinder engine yielding 380 horsepower and 354 pound-feet of torque, a relatively modest but appropriate engine configuration in light of the Ur-Quattro's five-banger. Given the Quattro Concept's size and specs, it wasn't clear exactly where such a vehicle might fit into the company's lineup, though, as it already already offers the successful A5/S5/RS5 lineup.
Apparently, Audi might have a solution to that conundrum. A new report from Germany's AutoZeitung suggest that the automaker is posed to reveal a production version of the concept at the Frankfurt Motor Show in September - on the Ur-Quattro's 30th anniversary, no less. Word is that Audi is taking the Quattro Concept upmarket in a big way, with a tuned version of the twin-turbo 4.0-liter V8 from the RS7 churning up in the neighborhood of 650 horsepower. Naturally, all-wheel drive will get all that power to the ground, and new bodywork is expected as well. In addition to the powertrain switch-up, there is talk of extensive use of lightweight materials, including magnesium, carbon fiber and aluminum, with a target weight of under 2,900 pounds. Magnetic ride control suspension and carbon-ceramic brakes are also expected to find their way onto the model. Unsurprisingly, all of that extra equipment is likely to impact the car's bottom line - reports suggest its sticker price could crowd that of the mighty R8 at around $150,000.

Audi will spend less on future technology as it focuses on future technology

It seems the very thing meant to be saved by Audi curtailing spending could also take a hit as a result. A report from Reuters outlines a few ways Audi will cut costs in the wake of its parent company's diesel scandal. While focusing on EVs, autonomous driving, and new connected technology instead of its current vehicle portfolio, Audi is axing plans for a track to test self-driving cars as well as facilities meant to produce new concepts and batteries. Or, you know, exactly the kinds of things Audi is now focusing its efforts on. Some of this shouldn't come as a surprise. We already know about the death of the R8 E-Tron, a low-volume EV that wasn't going to make the brand much money and didn't pan out as a halo electric car quite like the company probably hoped. Then there's the new E-Tron crossover, which has been in the works for a while and will head a line of consumer-grade EVs from the brand – the kind that will make money as long as they sell in mass-market numbers, something Tesla has shown is possible. That project is surely safe, although perhaps it will now take longer for the EVs to gain autonomous abilities. This change in funding direction could mean that the planned autonomous track, dubbed IN-Campus as it was to be located in Audi's home of Ingolstadt, was going to be more for show than actual research, or that Audi thinks it can get the same outcomes in its existing facilities or new ones located elsewhere. (The company's work council is upset by the plan being put on hold, as it could mean more jobs leaving Germany.) There's also the very strong possibility that this provides a welcome opportunity for the company to cut some fat. Reuters notes that Audi spends more on R&D than rivals BMW and Mercedes-Benz, despite having the whole VW Group to leverage. While the diesel scandal was certainly not welcome, it may be forcing Audi and the other Group brands to take a closer look at balance sheets than they otherwise would have. The result of all of this could be a leaner company, assuming too much attention doesn't stray to low-volume EVs and away from what are still the core products. Related Video: News Source: ReutersImage Credit: Reuters Green Audi Technology Crossover Autonomous Vehicles Electric audi e-tron

Lamborghini could be sold or spun off from the Volkswagen Group

Volkswagen is reportedly considering a sale or stock listing for its high-end Lamborghini brand. The German automaker is looking to fold the Italian supercar brand into a separate legal entity, reports Bloomberg, which cites "people familiar with the matter" who don't want to be identified "because the deliberations are confidential and no decisions have been made." Any of this sound familiar? The goal of spinning off Lamborghini would be to stockpile more cash and other resources for VW's massive planned push into electric vehicles. Back in March, reports circulated that Volkswagen's "Vision 2030" corporate plan might include plans to focus on the brand's core brands — VW, Audi and Porsche. That means the futures of fringe players like Lamborghini, Bentley, Bugatti, motorcycle brand Ducati and design firm Italdesign (and note this isn't a comprehensive list of brand's under the expansive VW Group umbrella) are up in the air. VW, according to the report, is targeting a market value of $220 billion, which is a big jump from the brand's current $89 billion valuation. Bloomberg pegged Lamborghini's valuation at around $11 billion back in August, buoyed by sales and profits generated by the introduction of the Urus sport utility vehicle. On the flip side, Lamborghini is currently grappling with how best to update its supercar lineup in the face of ever-increasing emissions regulations.