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Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati

Audi getting ready for an entire line-up of PHEV models

Despite years of researching any number of standard ICE alternatives, it's becoming clear that different automakers are starting to throw their weight behind their advanced-powertrain technologies of choice. For instance, Toyota is gearing up for its first production hydrogen fuel-cell vehicle next year. Nissan continues to preach the gospel of the battery-electric engine. For Audi, plug-in hybrids appear to be the way to go. The German automaker plans to have a plug-in hybrid version of every one of its models by the end of the decade, UK's Autocar reports, citing comments Audi research and development head Ulrich Hackenberg made at a recent launch event for the A3 Sportback E-Tron. Hackenberg spelled out two variants of the powertrain, including one front-wheel drive version that pairs an electric motor with a 1.4-liter gas engine (this is the version used in the A3), and another to be used for four-wheel-drive vehicles in which an electric motor drives the rear wheels. We couldn't get more information from Audi representatives here on the A3 Sportback E-Tron launch ourselves, and an Audi spokesperson said in an e-mail to AutoblogGreen that the company wasn't commenting further on its plans for plug-in hybrid powertrains in more models. Audi has started pre-sales of the A3 Sportback E-Tron in Germany, pricing the car at about $51,000 with deliveries to start sometime this winter. The vehicle puts out 204 horsepower and can go as far as 31 miles on electric power alone. An exact date has not been set for importing that plug-in to the US, but it will happen some time next year.

Germany says nein to EU ban on new fossil-fuel cars from 2035

BERLIN (Reuters) - Germany's government will not agree to European Union plans to effectively ban the sale of new cars with combustion engines from 2035, Finance Minister Christian Lindner said on Tuesday. In its bid to cut planet-warming emissions by 55% by 2030 from 1990 levels, the European Commission has proposed a 100% reduction in CO2 emissions from new cars by 2035. That means it would be impossible to sell combustion engine cars from then. European Parliament lawmakers backed the proposals this month, before negotiations with EU countries on the final law take place. Speaking at an event hosted by Germany's BDI industry association, Lindner said there would continue to be niches for combustion engines so a ban was wrong and said the government would not agree to this European legislation. Lindner, a member of the pro-business Free Democrats, which shares power with the Social Democrats and Greens, said Germany would still be a leading market for electric vehicles. (Reporting by Christian Kraemer; Writing by Madeline Chambers; Editing by Miranda Murray and Edmund Blair) Green Government/Legal Green Audi BMW Mercedes-Benz Volkswagen Opel SEAT Skoda