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VW may make Bentley a subsidiary of Audi

FRANKFURT — Volkswagen plans to make British luxury carmaker Bentley a subsidiary of its Audi division as it seeks economies of scale among its top-end brands, German trade publication Automobilwoche reported. Bentley, for now overseen by the head of VW's Porsche business, Oliver Blume, will from next year be part of Audi, where VW group Chief Executive Herbert Diess believes it has more potential, Automobilwoche cited company sources as saying. Synergies could include using Audi technology for a new Bentley SUV, it added. Volkswagen, which declined to comment on the report, is reviewing the future of its high-performance brands Lamborghini, Bugatti and Ducati motorcycles as part of broader quest for more economies of scale as it shifts to mass producing electric cars. Sources familiar with the matter told Reuters this month that Volkswagen was working on plans to prepare Lamborghini for a stock market listing. Related Video: Audi Bentley Volkswagen

Bentley Bentayga to add gasoline V8 before plug-in hybrid powertrains bows

The Bentley Bentayga offers exactly one powertrain in the US: a 6.0 liter W12 with 600 horsepower and 664 pound-feet of torque. Overseas buyers get the additional option of a 4.0 liter diesel V8 with 429 hp and 664 lb-ft - the same oil burner from the Audi SQ7, denied us after Volkswagen Group pulled diesels from the US market. Auto Motor und Sport reports that Bentley will add two more powertrains to the mix over the next year, but it's unclear whether any of them will come here: a 4.0-liter gasoline V8, and a plug-in hybrid. The German publication expects the Porsche-developed 4.0-liter, twin-turbo V8 to get the nod for Bentley use. That engine serves in the Porsche Cayenne Turbo (550 hp/567 lb-ft) and Lamborghini Urus (650 hp/627 lb-ft), which both share their MLB platform with the Bentayga. Making sure not to step on the toes of the W12, the 4.0-liter petrol V8 will get something like the Cayenne Turbo's 550 hp. We've seen spy shots of the Bentayga PHEV testing at the Nurburgring, but we weren't sure what the SUV used for motivation. Porsche again donates equipment for the plug-in hybrid Bentayga, the forthcoming powertrain swiped from the Panamera 4 E-Hybrid. In the Porsche, total output comes to 462 hp and 516 lb-ft. Spy shooters captured a photo of an "EV Mode" button inside the Bentayga, so we know it will do silent running; the 14.1 kWh battery in the Panamera E-Hybrid provides 31 miles of electric-only range. Both powertrains will provide a lower price point for the Bentayga compared to the W12, a stat line that should increase the big Bentley's appeal even though sales already qualify as gangbusters, considering the vehicle. According to AMS, the 4.0-liter gas V8 Bentayga should show up sometime around summer 2018, the PHEV to follow. Related Video:

VW Group to split brands under four holding companies

The Volkswagen Group is planning a tremendous shift in its internal structure that will decentralize operations by splitting its 12 brands into four different holding companies. Here's the breakdown. Things will be split logically, considering the inter-sharing of parts, platforms, and engines. The Volkswagen brand, Seat, and Skoda make up a passenger vehicle division led by former BMW man Herbert Diess. Audi, which is tightly intertwined with Lamborghini and motorcycle manufacturer Ducati, will be managed by current Audi exec Rupert Stadler. Porsche and Bentley, which are already quite close, will be joined by Bugatti and run by Matthias Mueller. Finally, a commercial vehicles division will include Volkswagen Commercial, Scania, and Man. Former Daimler exec Andreas Renschler will take care of the big vehicles. The massive move, according to Automotive News Europe, is part of an internal VAG effort to move away from the structure established by ousted Chairman Ferdinand Piech, who favored a compact, but highly centralized, management structure to oversee the independent actions of the company's brands. Criticism of Piech's arrangement stemmed from the company's slow responses to changes in the market, ANE reports. The new structure should make for a more efficient, streamlined company that's better able to make crucial decisions. What are your thoughts? Should VAG decentralize, or did Piech have the right idea? Have your say in Comments.