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German automakers' stocks fall as EU investigates collusion

BERLIN/FRANKFURT - Volkswagen will hold a special supervisory board meeting on Wednesday to discuss allegations that German carmakers operated a wide-ranging cartel, a source familiar with the matter said on Monday. The European Commission said on Saturday antitrust regulators were investigating a possible German auto industry cartel following a tipoff. At stake is whether carmakers VW, Audi, Porsche, Mercedes and BMW used German auto industry committees to discuss pricing of components and technologies, and whether such talks constituted anti-competitive behavior. A VW spokesman confirmed an extraordinary supervisory board meeting would be held on Wednesday but declined to give details. German auto stocks took a hit in early trading on Monday, weighed down by uncertainty over possible antitrust fines after European regulators said they were probing cartel allegations. VW shares were down 2.8 percent, with Daimler and BMW down 3.4 percent and 2.5 percent respectively, lagging the blue-chip DAX index, which was 0.7 percent lower. Exane BNP Paribas automotive analyst Stuart Pearson said little was known about the allegations, but no signs had emerged about fixing prices charged to consumers. "More ugly details could yet emerge, leaving German manufacturers - and the EU auto sector - still firmly in the sin bin for now," he added. The car industry has been hit with billion-euro fines on both sides of the Atlantic in recent years for cartels related to various parts such as lighting systems, engine coolers and bearings. The industry's record on exhaust emissions is also under close scrutiny after VW admitted in September 2015 to cheating U.S. diesel emissions tests and investigations have shown many vehicles exceeding pollution limits outside of testing labs. On Friday, German magazine Der Spiegel said VW, its Audi and Porsche brands, Mercedes-owner Daimler and BMW may have colluded to fix prices on components, including of diesel emissions treatment systems, using industry committees. Spiegel said the talks also led to the use of smaller tanks containing AdBlue, a urea-based liquid needed to help filter nitrogen oxides (NOx) from diesel emissions. Larger tanks would have been more expensive, the magazine said. Auto industry experts, however, have said the effectiveness of exhaust filtering systems does not depend on the size of an AdBlue Tank. BMW, for example, has equipped its cars with urea injection as well as a NOx-storage catalytic converter.

Audi R8 LMS GT4 debuts in New York, a ready-made race car

The new Audi R8 LMS GT4 race car has made its debut at this year's New York Auto Show. Since 2009, the Audi R8 LMS GT3 has been available for customer purchase, but this new model is intended to be even more affordable. LMS GT-class racing is some of the most entertaining out there. Unlike racing series such as Formula 1, NASCAR, or even the World Rally Championship, GTE, GT3, and GT4 cars are still based heavily on cars you can find on dealer lots today. The GT4 class was created to have a true entry-level racing series. Homologation keeps the cars closer to their production counterparts than any of the other GT classes. Engines, bodywork, and suspension are all similar to production versions, though substantially beefed up for racing. In the case of the Audi R8 LMS GT4, more than 60 percent its parts are shared with the R8 coupe. That means parts are plentiful and relatively affordable. There are some significant changes between the production and racing versions. First, the V10 in the road car is actually far more powerful. The R8 LMS GT4 is limited to 495 horsepower, though that can vary slightly to meet different regulations. Also, rather than having Audi's wonderful Quattro all-wheel drive system, the R8 LMS GT4 is rear-wheel drive. Power is sent to the wheels through a seven-speed dual-clutch transmission. Though the car is set to make its debut next month at the Nurburgring 24 Hours, it won't actually be competing until the start of the 2018 season. Audi is simply tuning the car at different tracks before asking for approval at the end of the year. Pricing hasn't been announced, but expect it to fall between the $145,000 of the RS3 LMS and the $450,000 of the R8 LMS GT3. That's not nothing, but in the world of professional racing, it's a relative bargain. Related Video:

1,682 miles in a 2014 Audi A8 L TDI - Part 2

Interruptions like the Canadian Grand Prix, Le Mans, Pikes Peak, that ridiculous Porsche 911 GT3 and the really good, really outrageous Jeep Cherokee, are among the distractions that delayed the conclusion of this tale. If you'll remember, in Part 1 we started off in a parking lot in Sebring with an Audi A8, headed anywhere that would empty our tank, and after five days in Miami and Ft. Lauderdale and Pompano Beach we bolted in the middle of the night for a breakfast date at an IHOP a couple hundred miles away.
We last left proceedings at a Chevron pump beside the West Florida Turnpike, somewhere around midnight in the humid wilds, having done 660 miles and spent $89.40 to put 20.992 gallons in the great white whale. We had done average speed of 31 miles per hour at an average rate of 27.5 miles per gallon. Those kinds of numbers, as we demonstrated, are good enough to put you in the fuel economy orbit of the Toyota Corolla - to be precise, it only cost $6.40 more to cover that 660 miles in the A8 TDI than it would in the Japanese compact. That led us to conclude that there were just a couple of Starbucks Venti lattes between the A8 and the Corolla, assuming we conveniently ignore the two cars' purchase prices. Turns out we were wrong: it didn't take long for a commenter named "mike" to set us straight when he wrote, "It's clear you weren't lying about not frequenting Starbucks...no way could you get two venti lattes for $6.40." Mike, we salute you - our ignorance of terrible coffee has served the higher purpose of emphasizing the strong case made by the diesel Audi.
But that A8... well, the wheels were still on the damn thing and we had to drive them off. That meant five more days of pilot duty to get us from wherever the hell we were to Wildwood and Daytona Beach, FL, then Brunswick, Macon and Atlanta, GA, then Birmingham, AL, and back to Atlanta.