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Audi A3 supplies tight, model stealing Honda, Toyota sales

It appears that there was a pent up demand for compact, front-wheel drive German luxury sedans that no one really knew about. Not only has the Mercedes CLA-Class been a success in the US with its Hungarian factory running three shifts to keep up, but the Audi A3 Sedan is doing quite well, too, after just three full months on the market.
Audi of America recently announced that the compact sedan shifted 2,452 vehicles in June and 7,735 units of the A3 since the beginning of the year. Not only are they selling; it's the people buying them that's important. According to Audi USA spokesperson John Schilling speaking to Autoblog, "A little over 25 percent of A3 buyers in April were 30 years or under." That's compared to about 18 percent for the A4, he said. Company executives also recently told Edmunds that many of those new customers are brand conquests turning in Honda or Toyota models. We gently mocked Audi when it held A3 Sedan launch parties aimed at hipsters that served craft beer and played indie music, but the marketing worked, apparently.
That said, if you're in the market for an A3, you might have not be able to get one immediately. According to Edmunds, some customers are on a waiting list for the compact luxury sedan. Although, Schilling said that's because Audi is still stocking dealers. "It's a little leaner than other models, but that's mainly because it's new and still ramping up," he said.

2014 Audi S1 Quattro [w/video]

Audi may only now be fully committing to the US compact car market with a range of A3 models, but it's got far more small car expertise than most Americans realize, and its offerings get even tinier, too. Back in 2010, Audi leapt into the subcompact premium fray - in all markets but the United States, Canada and China - with its A1. The A1 family has sold all right, but not quite as well as was expected, likely due to its price when optioned up. (It also doesn't help that the Volkswagen Polo is a great car on the same architecture and costs much less.)
But Audi seems compelled to make high-buck S trims of everything nowadays, so right on schedule, I've scored seat time in its new S1 Quattro. Under its gumdrop-colored hood is the very popular 2.0-liter TFSI motor. In this trim, it's good for 228 horsepower and 273 pound-feet of torque between 1,600 and 3,000 rpm. That's quite a lot of gumption for this little blaster - enough power for 0-60 in just 5.7 seconds.
My drive was originally supposed happen on a sub-zero frozen lake in Sweden, only Audi forgot to call Mother Nature and ask her to hold off on springtime. It would have turned into a slush drive and then a submarine test had I been told to stick to the original plan, so it was dusty, soggy and gravel-y pavement instead, which turned out to be a better real-world test anyhow. Plus, the car got even cuter when it was filthy.

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