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German automakers' stocks fall as EU investigates collusion

BERLIN/FRANKFURT - Volkswagen will hold a special supervisory board meeting on Wednesday to discuss allegations that German carmakers operated a wide-ranging cartel, a source familiar with the matter said on Monday. The European Commission said on Saturday antitrust regulators were investigating a possible German auto industry cartel following a tipoff. At stake is whether carmakers VW, Audi, Porsche, Mercedes and BMW used German auto industry committees to discuss pricing of components and technologies, and whether such talks constituted anti-competitive behavior. A VW spokesman confirmed an extraordinary supervisory board meeting would be held on Wednesday but declined to give details. German auto stocks took a hit in early trading on Monday, weighed down by uncertainty over possible antitrust fines after European regulators said they were probing cartel allegations. VW shares were down 2.8 percent, with Daimler and BMW down 3.4 percent and 2.5 percent respectively, lagging the blue-chip DAX index, which was 0.7 percent lower. Exane BNP Paribas automotive analyst Stuart Pearson said little was known about the allegations, but no signs had emerged about fixing prices charged to consumers. "More ugly details could yet emerge, leaving German manufacturers - and the EU auto sector - still firmly in the sin bin for now," he added. The car industry has been hit with billion-euro fines on both sides of the Atlantic in recent years for cartels related to various parts such as lighting systems, engine coolers and bearings. The industry's record on exhaust emissions is also under close scrutiny after VW admitted in September 2015 to cheating U.S. diesel emissions tests and investigations have shown many vehicles exceeding pollution limits outside of testing labs. On Friday, German magazine Der Spiegel said VW, its Audi and Porsche brands, Mercedes-owner Daimler and BMW may have colluded to fix prices on components, including of diesel emissions treatment systems, using industry committees. Spiegel said the talks also led to the use of smaller tanks containing AdBlue, a urea-based liquid needed to help filter nitrogen oxides (NOx) from diesel emissions. Larger tanks would have been more expensive, the magazine said. Auto industry experts, however, have said the effectiveness of exhaust filtering systems does not depend on the size of an AdBlue Tank. BMW, for example, has equipped its cars with urea injection as well as a NOx-storage catalytic converter.

Next Audi R8 caught on the 'Ring

Now that we're kinda-sorta-maybe-slowly thawing out from this horrible winter, automakers are moving away from the harsh extremes of winter testing and taking their new wares for laps around the infamous Nürburgring. What better way to kick off the sports car testing season than some fresh shots of the next-generation Audi R8 supercar?
Despite the slick coupe's shape not changing too much, details under that camouflage reveal styling elements that are more squared off and angular - similar to what Audi has done with its 2015 TT coupe. Don't be fooled by those square taillamp holes in the camo out back, either - look closely and you'll see a stylish LED lamp design.
Expect some 100 to 200 pounds to be shaved off the next R8's curb weight.

2018 Audi A5 and S5 Sportbacks are coming to America

Fans of hatchbacks have cause for celebration, because Audi confirmed the 2018 A5 and S5 Sportback models are coming to the US. The five-door variant of the classy A5 coupe and convertible line will appear in America this spring. Pricing was not announced. While we will be getting the hatchback, we won't get every powertrain option offered in Europe. Those versions will be offered with an array of gas and diesel engines, and some will be available with a manual transmission. We'll only get two engines here, and they both come with automatics. The standard A5 Sportback will come with the same turbocharged four-cylinder as the A5 coupe and convertible and the A4 sedan. It makes 252 horsepower and 273 pound-feet of torque of torque and is paired with a seven-speed dual-clutch transmission. The S5 Sportback gets the same 354-horsepower turbocharged V6, which also makes 369 lb-ft of torque and sends power through a conventional 8-speed automatic. Both Sportback models are nearly as fast as their two-door siblings, reaching 60 mph in 5.7 and 4.5 seconds respectively. That's just a tenth of a second slower than either coupe. The Sportback also has one more difference compared with the European version. All American A5 Sportback models will come with Audi's Quattro all-wheel-drive. The Sportbacks feature similar interiors to their coupe and convertible brethren, along with the same infotainment options. This includes the available Virtual Cockpit LCD instrument panel and MMI system. Of course the biggest difference between the Sportback and the two-door models is space. Audi claims the Sportback has twice as much cargo room as the coupe. And the back seat will obviously be much more comfortable and usable. View 14 Photos You don't sacrifice too much in style, either. The A5 coupe's distinctive, Coke-bottle character line has made the transition to a longer profile gracefully, and it's complemented by the greenhouse inspired by the bigger A7 Sportback. So if you've always wanted an A5 for its looks, but felt you needed something more practical, you won't have to compromise with the Sportback. Related Video: