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Volkswagen may 'carve out' Lamborghini to list on the stock exchange

FRANKFURT — Volkswagen is drawing up plans to set up Lamborghini as a more independent unit, and is discussing long-term supply deals that could make it easier to list it on the stock exchange, two sources familiar with the matter told Reuters. "Volkswagen is in the process of carving out Lamborghini, and to organize future supply and technology transfer deals," one of the sources familiar with the matter told Reuters. The Italian sportscar brand, which is currently a division of Audi, could be partially listed, with Volkswagen retaining a controlling stake, the first person familiar with the talks said. There is no formal decision to divest Lamborghini, a second source said, adding that the timetable of any deal remained unclear. "This is a first step which gives VW the option to list the unit further down the line," the second source told Reuters. A third source familiar with the discussions said the future of Bugatti, Lamborghini and Ducati was discussed during a supervisory board meeting last Friday. The possibilities for how to electrify the Lamborghini and Bugatti brands through partnerships and investors was discussed, the third source said. Bankers and potential cornerstone investors in an IPO have been approached by the carmaker, the sources said. Volkswagen declined to comment. Volkswagen Group's Chief Executive Herbert Diess on Wednesday said the carmaker will announce "important steps" about the company's future before the close of the year. Volkswagen is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play within the multi-brand carmaker as part of broader quest for more economies of scale, senior executives told Reuters. A global clampdown on combustion-engined vehicles has forced carmakers to accelerate development of low-emission technology for mainstream models, leaving Volkswagen managers struggling to find resources to electrify low volume sportscar models. Related Video:

2014 Audi RS Q3 breaks out ahead of Geneva reveal

Ahead of its big reveal next month at the 2013 Geneva Motor Show, Audi has released a handful of images and plenty of details for the all-new RS Q3. As the first-ever crossover from the marque with RS branding, this will be the fourth RS model to go on sale this year after the RS5 Cabriolet, RS6 Avant and the RS7, and while UK and Germany sales have been confirmed, there is no word as to whether we can expect this high-performance CUV to be available in the North America.
Sharing its 2.5-liter turbocharged and direct-injected five-cylinder engine with models like the TT RS and the RS3 Sportback, the 2014 Audi RS Q3 should deliver on performance, as it pumps out 310 horsepower and 309 pound-feet of torque (peak torque starting at just 1,500 rpm and running up through 5,200 rpm). This potent engine is paired to Audi's seven-speed S tronic transmission and Quattro all-wheel drive. Despite its small stature, the RS Q3 still tips the scales at just over 3,800 pounds. Even so, performance figures are still impressive with a limited top of 155 miles per hour and a stated 0-62 mph time of 5.5 seconds. The RS Q3 also gets a sport suspension that has been lowered by 25 millimeters, launch control and weight-saving front rotors with a wave-cut and cross-drilled design gripped by massive eight-piston calipers.
Looking almost identical to what we saw last year in concept form in China, the 2014 RS Q3 looks just as sporty as its spec sheet suggests that it is. Up front, the fascia gets massive air intakes with silver vertical accents and, like other recent RS models, the Quattro emblem is written across the lower air intake. The silver accent motif also continues on the grille surround, mirror caps, roof rails and rear diffuser trim, and the oval exhaust outlet is also an identifying feature of Audi's RS cars.

2016 Audi A3 Sportback E-Tron First Drive

While its parent company is still in the throes of an emissions scandal that has thrust the "green" credentials of automakers worldwide under the microscope, Audi is launching its first plug-in hybrid in the US. Audi is ready to double down on its electrified future, putting up its own reputation as collateral. This A3 Sportback E-Tron – a vehicle we've sampled in prototype form – is a tech-savvy plug-in car that could be the perfect vehicle to mark the brand's new commitment to an electric lifestyle. Straightaway, Audi USA President Scott Keogh addressed the TDI situation. He says he and the rest of the company are "shocked, followed by appalled, followed by anger, and now in the phase of drop-dead determination to make this thing right." Out of the 500,000 affected 2.0-liter TDI engines around the world, 14,000 are in Audis: about 3,000 A3 TDI sedans and about 11,000 A3 TDI Sportbacks. "It's quite simple. CARB and the EPA have told us these cars can stay on the road, they will stay on the road until we have a fix, and when we have a fix, we will absolutely fix these cars." The most important thing going forward, Keogh says, is regaining the trust of both the dealers and customers. Audi has been enjoying a bit of momentum in recent years, building a reputation for itself along the way. Audi came on the scene in the US in 1969, but it took until 2010 for the company to sell 100,000 units in a single year. Now, "In 2015, we're starting to look down the barrel of nearly doubling our sales in five years," says Keogh. The A3 achieves a 40-percent segment share, and for 75 percent of those buyers, it is their first purchase of a luxury brand. But as its own pace increases, the momentum of the industry as a whole has pulled Audi toward this foray into electromobility. Enter the A3 Sportback E-Tron. There's a little extra weight from the battery pack, but the suspension does a good job of keeping it unnoticeable while driving. The A3 E-Tron has several strengths working in its favor. First of all, as Keogh puts it, the hatchback is a "real, proper Audi – a real, proper, fully rounded driving machine." Qualifications such as "this is an electric car" don't matter. "People just want to buy a car," he says. It has the technology, build quality, and drivability of an Audi.