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Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati

The next-generation wearable will be your car

This year's CES has had a heavy emphasis on the class of device known as the "wearable" – think about the Apple Watch, or Fitbit, if that's helpful. These devices usually piggyback off of a smartphone's hardware or some other data connection and utilize various onboard sensors and feedback devices to interact with the wearer. In the case of the Fitbit, it's health tracking through sensors that monitor your pulse and movement; for the Apple Watch and similar devices, it's all that and some more. Manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality. As evidenced by Volvo's newly announced tie-up with the Microsoft Band 2 fitness tracking wearable, car manufacturers are starting to explore how wearable devices will help drivers. The On Call app brings voice commands, spoken into the Band 2, into the mix. It'll allow you to pass an address from your smartphone's agenda right to your Volvo's nav system, or to preheat your car. Eventually, Volvo would like your car to learn things about your routines, and communicate back to you – or even, improvise to help you wake up earlier to avoid that traffic that might make you late. Do you need to buy a device, like the $249 Band 2, and always wear it to have these sorts of interactions with your car? Despite the emphasis on wearables, CES 2016 has also given us a glimmer of a vehicle future that cuts out the wearable middleman entirely. Take Audi's new Fit Driver project. The goal is to reduce driver stress levels, prevent driver fatigue, and provide a relaxing interior environment by adjusting cabin elements like seat massage, climate control, and even the interior lighting. While it focuses on a wearable device to monitor heart rate and skin temperature, the Audi itself will use on-board sensors to examine driving style and breathing rate as well as external conditions – the weather, traffic, that sort of thing. Could the seats measure skin temperature? Could the seatbelt measure heart rate? Seems like Audi might not need the wearable at all – the car's already doing most of the work. Whether there's a device on a driver's wrist or not, manufacturers seem to be developing a consensus that vehicles should be taking on some of a wearable's functionality.

Audi's next S7 spotted sporting Prologue-inspired nose

Our spy photographers caught the next-generation S7 testing at the Nurburgring, and this newest version, while still retaining the S7's hatchback profile, updates it with design cues from the Prologue concept. The front is the most distinctly updated part of the car, and pulls the most from the concept. The grille has been widened and given more defined corners that exaggerate the hexagonal shape. The headlights have been slimmed down and are more in line with the grille. These changes give the front of the new S7 a lower, wider look than its predecessor. Speaking of grilles, we also spot a heat exchanger tucked inside the grille opening on the left corner. We're not sure if this is an intercooler, an additional radiator or perhaps an oil cooler, but clearly something needed a bit more airflow. We don't really have any indications of what powertrain the new version will have, but it will probably have a higher output than the current 450-horsepower S7. Moving around to the back, the much-loved arching hatchback profile drops to a revised tail. The taillights, like the headlights, are more slender than they used to be, and they also appear to have been stretched closer to the center of the rear fascia. The base of the hatchback opening appears to have been widened as well. This doesn't have much of an effect on style, but it should make it easier to load cargo into the S7 and its stablemates. As for when we'll see this new hatch revealed, we're not sure. But this prototype looks close to production-ready, so we could see a debut soon, perhaps sometime next year. Related Video: Featured Gallery 2018 Audi S7 spy photos View 19 Photos Image Credit: CarPix Spy Photos Audi Hatchback Luxury Performance audi s7