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Entry-level Audi R8 to go turbo after all?

Would you be shocked if we told you that the better version of the Audi R8 offered a V8 engine rather than a V10? There was something inherently lovable about the company's 4.2-liter V8. Maybe it was the noise or the high-revving nature or some combination of the two, but the R8's original engine is a darn hoot. Sadly, the V8's days appear numbered in the brand's flagship model, according to a new report from Car, which claims Audi will ditch the beloved, off-angle 4.2-liter for a 2.9-liter, twin-turbocharged V6. The rumor cites sources in Ingolstadt who claim the new engine will develop 450 horsepower, up 20 ponies on the current entry level engine. We'd expect a commensurate increase in fuel economy too, befitting of a smaller, force-induced engine. Still, this is counter to what we've heard before. But, if the report proves true, the R8 will join the ranks of turbocharged supercars like the Ferrari 488 GTB and California. It's unclear when such a switch would be made, but according to Car, we can place the blame squarely on China. The country has been combating large-displacement engines since 2008, attaching massive taxes on vehicles with anything larger than a 3.0-liter engine. It's China's position, Car reports, that led to the death of another beloved, naturally aspirated V8, Mercedes-AMG's 6.2-liter model. First the venerable M156 and now Audi's 4.2-liter V8? Just stop this silliness China. Related Video:

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.

Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.