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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:

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

For Audi, Quattro name means something for hydrogen cars, too

Forget Dueling Banjos. Audi is proposing "Dueling Motors" for its Audi A7 Sportback H-Tron Quattro concept vehicle. All in the name of appropriate pickup, of course. The German automaker, which showed off the concept sedan at the Los Angeles Auto Show last month, is pairing a plug-in electric motor with a hydrogen fuel cell powertrain. Each motor powers two wheels, maintaining the Quattro's all-wheel-drive pedigree. The car's 8.8-kWh lithium-ion battery can drive the car as far as 31 miles on battery-power alone. After that, the water-vapor-spewing fuel-cell engine kicks in. Audi executive Ulrich Hackenberg told Automotive News Europe that the unusual set-up is necessary because the hydrogen fuel cell powertrain alone would only power two wheels while providing an insufficient 136 horsepower. Not exactly sport-sedan material, especially for a car that weighs about 4,300 pounds, even if it is a zero-emission ride. Combined, the two engines give the sedan 231 horsepower as well as a combined single-charge/full-tank range of almost 350 miles. What it all means is that the A7 can go from 0 to 60 miles per hour in less than eight seconds and has a top speed of about 112 miles per hour, and can still dash through the snow.