2001 Audi A6 Quattro Sedan 4-door 2.7l Turbo on 2040-cars

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Audi A0 in development based on VW Up!

Bigger, it seems, is no longer better. Volkswagen has made waves with its Up! city car, a plucky three-door that's been a bit of a hit since it burst onto the automotive scene, spawning a number of variants during its short life. And while our European friends have gotten a Cross Up!, a commercial version, an EV model, Seat- and Skoda-badged variants, and a rumored diesel-electric Twin-Up!, the small city car has been lacking in terms of its premium content.
That fact makes this rumor rather tantalizing - Audi might be working on its own version of the front-engined, front-drive city car, to be called the A0. The report comes from AutoExpress, which claims Audi CEO Rupert Stadler wants a premium Up! that features a distinctive interior and exterior treatment.
Changes could include a trapezoidal grille, in addition to premium exterior features like LED lighting and alloy wheels. The cabin would feature leather and likely a version of Audi's MMI infotainment system, while power would come from a 109-horsepower, 1.0-liter engine found in the Up! GT Concept.

Volkswagen may 'carve out' Lamborghini to list on the stock exchange

FRANKFURT — Volkswagen is drawing up plans to set up Lamborghini as a more independent unit, and is discussing long-term supply deals that could make it easier to list it on the stock exchange, two sources familiar with the matter told Reuters. "Volkswagen is in the process of carving out Lamborghini, and to organize future supply and technology transfer deals," one of the sources familiar with the matter told Reuters. The Italian sportscar brand, which is currently a division of Audi, could be partially listed, with Volkswagen retaining a controlling stake, the first person familiar with the talks said. There is no formal decision to divest Lamborghini, a second source said, adding that the timetable of any deal remained unclear. "This is a first step which gives VW the option to list the unit further down the line," the second source told Reuters. A third source familiar with the discussions said the future of Bugatti, Lamborghini and Ducati was discussed during a supervisory board meeting last Friday. The possibilities for how to electrify the Lamborghini and Bugatti brands through partnerships and investors was discussed, the third source said. Bankers and potential cornerstone investors in an IPO have been approached by the carmaker, the sources said. Volkswagen declined to comment. Volkswagen Group's Chief Executive Herbert Diess on Wednesday said the carmaker will announce "important steps" about the company's future before the close of the year. Volkswagen is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play within the multi-brand carmaker as part of broader quest for more economies of scale, senior executives told Reuters. A global clampdown on combustion-engined vehicles has forced carmakers to accelerate development of low-emission technology for mainstream models, leaving Volkswagen managers struggling to find resources to electrify low volume sportscar models. Related Video:

2015 Audi Q3

There are two ways to approach a brand-new segment in the auto industry. First, an automaker can take a gamble and introduce a completely new vehicle, catering to the specific demands of the marketplace(s) in question. In the compact, premium CUV segment, we've seen Buick do this with the Encore, and Mercedes-Benz with the GLA-Class. The other option is to introduce a vehicle already sold in another market. Considering the amount of time it takes to bring a new vehicle from paper to production, there is plenty to gain in the short-term with this approach. It's not without its downsides, though, as we found after a week behind the wheel of the 2015 Audi Q3, a vehicle that was initially launched in 2011. Cute though it may be – it was referred to at least once by a passerby during our testing as "totes adorbs" – Ingolstadt's decision to introduce a vehicle that's already been on sale for four years, and is effectively approaching the last half of its lifecycle, leaves the Q3 at a significant disadvantage relative to the newer competition. Despite crossing its first auto show stage four years ago, the Q3 remains a handsome little bugger. Audi's designs, while conservative, tend to age very well, and the compact Q3 is no exception. It's like a scaled-down Q5 in most respects, although certain design pieces, like its more aggressively raked rear window and shorter front and rear overhangs, belie the significantly smaller Q3's figure. Due to its age, the Q3 was, fortunately, designed before the current A3 hit the market. That means it avoids the unattractive, minimalist dash of the A3, opting for a more traditional Audi design, with a strip of brushed aluminum on the passenger's side, a user-friendly center stack and a suitably large nav screen front and center. While the overall layout is attractive, the material quality is not what we'd expect of a newer Audi. There's nothing that feels exceedingly cheap – the plastics just feel old and too familiar. It's difficult to describe, but as soon as you climb in the Q3, things like the switchgear for the HVAC controls immediately remind you that this is a vehicle that's been on sale since 2011. While our definition of interior quality has evolved over the years, our idea of a driver-friendly cabin has not. The Q3 scores highly in this regard, featuring the elevated seating position that makes CUVs so popular with the general public.