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VW Group exploring F1 options, would likely wait until Ecclestone is out

The real hurdle is that Volkswagen overlord Ferdinand Piech doesn't like Bernie Ecclestone on a personal or professional level. Superbugs. They are antiobiotic-resistant bacteria and viruses, fiends that defy eradication no matter how much counteracting agent you throw at them. Reports that Audi is going to join Formula One? They are the superbugs of rumors; for five years they've been coursing through the blood of motorsport, and no amount of denials or Audi's continued non-presence in F1 has been able to make them go away. Not even a month ago we contracted another bout of it, courtesy of Auto Express, citing sources who said Audi would leave endurance racing and DTM - handing Le Mans over to Porsche, instead of the other way around - and buy either Red Bull or Toro Rosso for an entry in 2016 with an in-house powerplant. Within 24 hours of that story, Audi Sport sent the tweet, "Audi in F1? There rumors keep appearing with regularity since years. It's pure speculation again this time and without any foundation." Now, few things are impossible in F1, but lining up on the grid in 2016 is not far away from needing to be ready tomorrow, in F1 terms, which is why these announcements come long in advance. Honda, you'll recall, gave us almost two years' notice of its F1 reunion and Porsche gave us three years notice about Le Mans. A brand-new report in the BBC says that Audi is using new hire and ex-Ferrari technical director Stefano Domenicali to lead a feasibility study into an F1 program. According to that story, the real hurdle to the foray, however, is that Volkswagen Group overlord Ferdinand Piech doesn't like F1 boss Bernie Ecclestone on a personal or professional level, so one of them would need to leave his position before Audi could say yes, feasibility be damned. Since we're talking about two men who define professional longevity, that day might not come soon. The BBC story goes on to say that Martin Winterkorn, head of the VW Group management board, would like to see the group in F1, and that if it happened it would be with a "car designed and made in Germany." Ladies and gentlemen, you know where to file this one...

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.

Audi rumored to buy Alfa Romeo, officials deny it

For more than two years, Volkswagen has been making public statements about its willingness to buy Alfa Romeo and quadruple the Italian brand's sales, and for just as long, Fiat CEO Sergio Marchionne has replied with some version of "Mr. Piëch, drop it." According to a report in Ward's Auto, all that jousting might be over: it claims that sources close to both Marchionne and Audi CEO Rupert Stadler admit that the two are in talks for Audi to buy not just Alfa Romeo, but a production plant in Italy. In fact, a final deal could possibly include partsmaker Magnetti Marelli.
Against that backdrop, a report by German news weekly Stern quotes a Fiat spokesmen as saying it doesn't comment on rumors and an Audi rep has said flatly that "There is no substance in the news." If a sale is being arranged, the timing would seem to point to how eager Fiat is to raise cash to complete its major initiatives. Even though Alfa Romeo continues to delay its return to the US, it just showed off the production version of the 4C at the Geneva Motor Show (shown above) and said that preferred Fiat dealerships here would get them. Then there's Alfa's recently concluded deal with Mazda to develop a roadster based on the next generation MX-5 Miata - a deal that would seem to help both the Italian and Japanese brands.
The monetary issues are troublesome, though. Fiat is taking a beating in the European market and its weak-kneed balance sheet is delaying gotta-have-it products like the Jeep Cherokee. Fiat has been talking to banks about getting money to buy the rest of Chrysler and those financial institutions have also raised issues about debt and cash reserves, and the nasty game of chess Fiat is playing with the United Auto Workers (and now the court system about the portion of Chrysler it doesn't own) could end up blowing another hole in Marchionne's plans. It is possible that this could finally have convinced Fiat to at least see how serious Audi's parent company, Volkswagen, is about buying Alfa Romeo. Or it could be just another rumor.