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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.

Volkswagen Beetle special edition concepts hit NY [w/poll]

Buying a retro hatchback or convertible like a VW Beetle is nothing if not a fashion statement, and nobody knows that better than Volkswagen itself. Which is likely why the German automaker is bringing four concept versions of the Bug to the New York Auto Show this year. Most intriguing of the quartet – to our eyes at least – is the Beetle R-Line concept, which takes a more performance-oriented approach. It's got 20-inch alloys riding on a wider track, an aero pack including a rear diffuser and spoiler, and black trim that looks great in contrast to the white pearl finish. The interior has been upgraded, as well, with sport buckets, carbon trim and yellow details, and the concept is powered by the 2.0-liter TSI engine with 217 horsepower. The R-Line concept won't be taking the stage alone, however, joined as it will be by the magenta-sprayed Pink Color Edition hatch, the beach-themed Wave and jeans-wearing Denim edition convertibles. Though all are billed strictly as showcars for the time being, VW admits it will be gauging public reaction to all four to determine potentially putting them into production for public consumption. So, that in mind, have a look at all the concepts in the gallery above, and tell us which one you like best in the poll below. VOLKSWAGEN AT THE 2015 NEW YORK INTERNATIONAL AUTO SHOW - Four Beetle Special Edition concepts introduced: Beetle Convertible Denim, Beetle R-Line, Beetle Convertible Surfer, and Beetle Pink Color Edition - All-wheel-drive Golf SportWagen Alltrack announced for production in 2016 - Volkswagen celebrates 60 years of Beetle heritage New York, New York - Volkswagen of America, Inc., today announced that it will produce the all-wheel-drive Golf SportWagen Alltrack for the U.S. market beginning in 2016, and showed four unique Beetle and Beetle Convertible models that help to commemorate Volkswagen of America's 60th anniversary. Golf SportWagen Alltrack Coinciding with the arrival of the all-new Golf SportWagen, currently available in dealer showrooms, Volkswagen is pleased to announce that the all-wheel-drive Alltrack model will go on sale in 2016 as a 2017 model. "We have heard from dealers and customers that they want to see a Golf SportWagen with the all-terrain capability that comes from all-wheel drive," said Michael Horn, President and CEO of Volkswagen Group of America, Inc.

VW delays new Phaeton flagship sedan

The Bugatti Veyron was a crusade begun by former Volkswagen Group CEO Ferdinand Piech. Even though the old patriarch is no longer with the company and the astonishing coupe is rumored to have never made a cash profit, everyone understands why the car remained in the family and why a successor is on the way. The same can't be said for the VW Phaeton, another one of Piech's pursuits. Thirteen years after the budget brand introduced the now 89,650-euro ($101,000) luxury sedan that competes with other in-house products, no one knows why it lives. Since VW made roughly 4,000 of them last year, the news that it's being delayed won't affect many people. The next-generation Phaeton developed on the MLB platform is apparently ready to go right now, but Bloomberg reports that the bosses have demanded lower production and material costs before it gets a final green light. At the moment the Phaeton is put together by hand by white-gloved technicians, which might sound like a great place to start counting pennies, but again, those technicians only built 4,000 sedans last year. That's fewer than the Eos, which is being retired for slow sales, and VW sold 3,411 Eos models in the US alone last year. Recent hire Herbert Diess is the VW exec in charge of the cost-cutting push. The Phaeton is a grain of sand - but a very important one - on the beach he's meant to conquer: Diess plans to raise VW brand profit to more than six percent by 2018 at the same time there's a group-wide push to save $5.5 billion. That number would more than double the brand's current 2.7-percent profit for 2015 so far, that current number being about half the profit over at struggling French maker PSA Peugeot-Citroen. The new Phaeton's on-sale date had been reported as 2017 or 2018 earlier this year. It isn't clear how long the sedan will be pushed back because of the production changes.