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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:

2017 Audi A4 Deep Dive

Unchanged. Plain. Boring. These words have been used to describe the new 2017 Audi A4, but they all miss the point entirely. Yes, the design of the new A4 is evolutionary, rather than a ground-up restyling. But as they say in ancient High German, "If it ain't broke, don't fix it." Of course, if you're at all interested in the 2017 Audi A4, you've probably read all about it in the official press release a few days ago. So we'll cut to the chase and tell you the bits you don't already know: the American-market details. We spent a day at Audi headquarters in Ingolstadt last week finding out the latest and poking around the A4 in the metal. The new A4 is wider, longer, and roomier than before. The lines are crisper and sharper, but yes, the proportions have remained very similar. That was done on purpose, thoughtfully. Not out of laziness. Stand any two sequential generations of Porsche 911 next to each other and you'll find they are rather similar. And yes, people do complain about that. But they also complain about the property tax rate on their third home in Monaco. That familiar-looking body gets a shockingly low coefficient of drag of just 0.23. The improvements in drag come from fine-tuning details down to the placement of the side mirror (now on the door, rather than the triangular window panel) and the contouring of the inner edge of the side mirror, which gets little vortex generating bumps to improve the turbulent airflow in that area, reducing drag. Attention to detail and refinement of a successful design – not boring, lazy repetition. Another notable departure in the styling of the new A4 is equally subtle, but even more significant from a precision manufacturing perspective: the hood has no cut lines on its upper surface. Instead, the hood now wraps around the tops of the fenders, the cut line integrating with the sharp crease that runs down the entire body side. The creation of this cut line requires extremely tight manufacturing tolerances to enable the precise alignment of the hood and fender gap with the stamped-in crease in the door panel; misalignment would be obvious and catastrophic to the clean, simple design's flow. Now, let's rip off this Band-Aid: no, we won't be getting the Avant. Why? Because no one buys it, vociferous vocalizations on the Internet aside.

The Audi Q7 doesn't want me to speed and I'm not totally okay with that

I'm a big fan of adaptive cruise control. My commute is 50 miles each way, almost all on freeways here in Michigan. If everyone drove at the same speed there'd be little need for smart cruise, but I live in reality where people camp out in the left lane and practice going from the gas to the brake for no apparent reason. Radar cruise systems let me set my max speed and just worry about steering. But Audi has gone a step further with its adaptive cruise system. And it's a step I'm not sure I'm comfortable with. Audi's system, as featured on the new Q7, has a feature that uses the forward-facing camera to read speed-limit signs, something that's becoming common in Europe and is now making its way here in the continent's luxury cars. That part's fine; it's useful information and gets nicely integrated into Audi's Virtual Cockpit screen and on the head-up display. What the car then does with that info, however, is the issue: If your set cruise speed is higher than the speed on a sign you pass, the car will drop the cruise speed down to the limit. But it's not perfect. On one stretch of highway, the Q7 picked up the speed limit posted on the parallel service road, dropping me down from a little above the limit to 30 mph. It didn't slam on the brakes, but it did confuse me at first and require intervention before the car slowed down to a crawl. This feature isn't ready for primetime. Luckily, it can be turned off or switched to a mode where it gives you a warning that the speed limit has changed (or at least that the car thinks it has) and lets you react before the set cruise speed is changed automatically. When activated, it's a safety issue. A more serious one, in my opinion, than driving a little over the speed limit, especially when it means interrupting the flow of traffic. There's nothing predictable about a car trundling along in the fast lane and then completely letting off the gas. It's not predictable for the driver behind you, and it's not something a driver expects of their own vehicle. Yes, this feature was obviously developed for people driving on the Autobahn, where speeds can drop down from unlimited to a slow crawl pretty quickly when entering a construction zone or approaching a built-up area. German roads also have more consistent signage, so the false-positive scenario I experienced might not have come up there.