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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

Next Audi RS4 to get V6 turbo, US sales still unclear

Audi's high-performance S models have forged a reputation in the US for offering wonderful driving dynamics in a package that doesn't scream, "I bought a sport sedan." However, its even higher-performance RS models are still somewhat of a rarity here. While the RS5 and RS7 are in the current US lineup, many of the wild RS models that Europe gets, like the RS6 Avant (pictured above), never make it to these shores. Unfortunately, that might not be changing anytime soon with the next-gen RS4.
The RS4 will follow the lead of the next BMW M3/M4 and (rumored) next Mercedes-Benz C-Class AMG and make the switch to a smaller turbocharged powerplant. According to an Audi insider speaking to Car and Driver, the next RS4 will drop the last generation's 4.2-liter V8 in favor of a turbocharged V6. The engine block will likely be shared with the supercharged 3.0-liter V6 in the regular S4 but fitted with two turbochargers. Power would likely be around 400 horsepower to match the 425-hp M3 and rumored 450-hp C-Class AMG.
Unfortunately, the RS might not make it across the pond to our waiting hands because the source says no decision has been made to export them yet. Obviously, we hope that Audi makes the right decision and brings the next RS4 here.

Audi S3 Cabriolet spotted in the world for the first time

Spy photographers have finally managed to lay a lens on the upcoming Audi S3 Cabriolet. The new convertible stepped out into the light of day for a little winter testing, and from the looks of things, the model will borrow plenty of design cues from the larger A5. Not that we're complaining. Word has it the S3 will put around 300 horsepower to the pavement via a quattro all-wheel drive system. We've also heard the machine will boast a dual-clutch transmission once it bows.
We've long been fans of the S3 Sportback, and the S5 holds a special place in our hearts as well. A smaller, lighter version of the big cabriolet with all of the aggressive proportions of its larger brother should prove to be a welcome addition to the Audi stable. Stay tuned for more information as it becomes available, and be sure to check out the full gallery for a closer look.