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Volkswagen may 'carve out' Lamborghini to list on the stock exchange

FRANKFURT — Volkswagen is drawing up plans to set up Lamborghini as a more independent unit, and is discussing long-term supply deals that could make it easier to list it on the stock exchange, two sources familiar with the matter told Reuters. "Volkswagen is in the process of carving out Lamborghini, and to organize future supply and technology transfer deals," one of the sources familiar with the matter told Reuters. The Italian sportscar brand, which is currently a division of Audi, could be partially listed, with Volkswagen retaining a controlling stake, the first person familiar with the talks said. There is no formal decision to divest Lamborghini, a second source said, adding that the timetable of any deal remained unclear. "This is a first step which gives VW the option to list the unit further down the line," the second source told Reuters. A third source familiar with the discussions said the future of Bugatti, Lamborghini and Ducati was discussed during a supervisory board meeting last Friday. The possibilities for how to electrify the Lamborghini and Bugatti brands through partnerships and investors was discussed, the third source said. Bankers and potential cornerstone investors in an IPO have been approached by the carmaker, the sources said. Volkswagen declined to comment. Volkswagen Group's Chief Executive Herbert Diess on Wednesday said the carmaker will announce "important steps" about the company's future before the close of the year. Volkswagen is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play within the multi-brand carmaker as part of broader quest for more economies of scale, senior executives told Reuters. A global clampdown on combustion-engined vehicles has forced carmakers to accelerate development of low-emission technology for mainstream models, leaving Volkswagen managers struggling to find resources to electrify low volume sportscar models. Related Video:

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 readies sales of new fuel-efficient A4, A5 and A6 models

As diesels continue to account for a minority of cars sold by Audi in the US, the German automaker and Volkswagen unit continues to expand its diesel models in Europe for the sake of fuel efficiency. Early this year, Audi will debut its new A4, A5 and A6 variants in Europe as part of what it calls its "ultra" strategy of pairing performance with fuel economy. Audi will have 11 new models for 2014, and the updated A4, A5 and A6 will use Audi's 2.0-liter turbodiesel powertrain. Versions of that engine will range from 136 to 190 horsepower, while torque will range from 236 to 295 pound-feet. More importantly, the models will get anywhere from 51 to 60 miles per gallon, when tested on the more lenient European driving cycle. And while manual transmission will be standard (this is Europe, after all), the A6 will have a seven-speed automatic transmission option. Pricing will start at 32,600 euros ($44,000 US) for the base A4 and work its way up to 45,000 euros (about $61,000) for the top of the line A6. Last year, Audi boosted its diesel sales in the US by 40 percent to just over 10,000 units, though that accounted for just a fraction of the approximately 158,000 cars the company sold domestically in 2013. Audi has a press release on the new models below. The new ultra models from Audi A4, A5 and A6 with impressive efficiency • New ultra models from Audi with 136 hp, 163 hp and 190 hp • Greater efficiency with unchanged driving dynamics • Emissions of just 104 to 119 grams of CO2 per kilometer (167.37 to 191.51 g/mile) Audi A6 2.0 TDI ultra, Audi A5 2.0 TDI ultra, Audi A3 1.6 TDI ultra Audi is expanding its ultra strategy with 11 new models: Especially efficient engine versions in the A4, A5 and A6 model lines will be launched in early 2014. A new and powerful two-liter TDI will provide the drive at 100 kW (136 hp), 120 kW (163 hp) or 140 kW (190 hp); the engine emits just 104 to 119 grams of CO2 per kilometer (167.37 to 191.51 g/mile) depending on the model. The "ultra" designation stands for sustainable mobility that is fully available for everyday use. With a combined fuel consumption rate of 3.9 to 4.6 liters per 100 kilometers (60.31 to 51.13 US mpg) and CO2 emissions of 104 to 119 grams per kilometer (167.37 to 191.51 g/mile), the new ultra models from Audi are among the most efficient cars of their segment – without any limitation on the driving dynamics or customary comfort. Audi Board Member for Development, Prof. Dr.