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Volkswagen decides to keep Lamborghini and Ducati, transfers Bentley to Audi

Investors in the market for a high-end Italian manufacturer that peddles performance will need to keep looking. Volkswagen announced it will hang on to Lamborghini and Ducati in the foreseeable future. Executives in Wolfsburg, Germany, are making far-reaching changes to the Volkswagen Group to reboot it with a big focus on technology. Credible rumors claimed that the people in charge of the carmaker wanted to carve out Lamborghini — which owns Ducati — and ultimately list it, or at least a chunk of it, on the stock market in order to fast-track the group's electrification strategy. Going electric is expensive, so selling Lamborghini would have helped fund the expansion, and high-octane supercars don't easily go hand-in-hand with zero-emissions cars. "Volkswagen needs to change from a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering to a digital company that reliably operates millions of mobility devices worldwide," summed up Herbert Diess, the group's boss, during a September 2020 meeting. His team ultimately decided not to fully divest both brands. It's too early to tell whether part of Lamborghini will be listed on the stock market, as some insiders have suggested, or if those plans are off the table, too. Changes are coming to Bentley as well. While it's not being spun off either, it will fall under the Audi umbrella starting on March 1, 2021. Volkswagen explained linking the two companies will "allow for synergies to be achieved as part of the electrification strategy of the two premium brands," a statement which suggests they will share a growing number of components during the 2020s. Unverified rumors claim that Bentley will notably get its own version of an ultra-luxurious electric SUV code-named Landjet that Audi is currently developing. We've reached out to Bentley for more details, and we'll update this story if we learn more. Bugatti's future wasn't mentioned in the release; unconfirmed reports suggest it will be traded for a stake in Croatian start-up Rimac. Volkswagen's supervisory board also reaffirmed its support for Diess, who was appointed CEO in 2018 and who has played a significant role in the company's transformation. Finally, the board approved the development of what a statement refers to a future leading electric vehicle sold by the Volkswagen brand that will be developed and manufactured in Wolfsburg.

U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.

2016 Bentley Continental GT First Drive [w/video]

I'm standing at the edge of a cliff, speechless. I'm looking at the Trollstigen – a serpentine pass with 11 hairpin turns, running down the side of a mountain in western Norway. I've seen this road before in photos, but in person, I'm both giddy and in awe. The pavement looks like haphazardly draped garland on this perfect bit of sculpted land. The Trollstigen ("Trolls' Path" in English) is a huge tourist attraction, and I can see why. But I'm about to have way more fun than the pedestrians who made their way to the summit in buses and shuttles. I'm going to drive this road. In a Bentley. The crew in Crewe claim their Continental GT is the finest grand tourer in the world. And along the Trollstigen, not to mention the other winding roads in western Norway, that's easy to believe. The Continental is big and beautiful. It's supremely comfortable. It has everything a driver or passenger could ask for. And good golly, is it powerful. Bentley introduced the Continental GT in 2003, with a second generation arriving in 2011. For better or worse, the changes for 2016 are minor. This isn't an all-new Conti, rather a light refresh in order to bolster what the big Bentley already does well. I'm not sure if these updates – particularly the front fascia – improve upon the original formula. The most obvious change for 2016 is the front bumper. It's been restyled to incorporate more aggressive fenders and a lower air intake that spans the full width of the car. Around back, there's a subtle lip spoiler built into the deck lid. V8 S and Speed models get a new rear diffuser. Fancy new side vents are present on all models, with a big metallic "B" shape. Finally, new 20- and 21-inch wheel options are available, including attractive directional alloys available on GT Speed models. But I'm not sure if these updates – particularly the front fascia – improve upon the original formula. Less obvious are the interior updates. There are new colors, as well as a straight-fluting pattern on the seats (GT Speed models get a super luxurious quilted pattern). LED lights accent the cabin. The lighting in the instrument panel and on the center stack is brighter and more crisp. You can get WiFi in the car, and can connect up to eight devices at once. But these improvements don't fix longstanding grievances with the Continental interior. For starters, the infotainment system is horrendously outdated and slow to respond.