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Audi reportedly will cut costs by $12B to fund electric-car push

BERLIN - Audi aims to cut costs by 10 billion euros ($12 billion) by 2022 to fund a shift to electric cars as it seeks to move on after the emissions scandal, sources close to the carmaker said. Audi, Volkswagen's main profit driver, plans to bring five new all-electric models to market in coming years, starting with the E-Tron sport-utility vehicle (SUV) to be assembled from 2018 in Brussels. Despite run-up costs for its electric-car program, the luxury automaker wants to keep its operating profit margin at 8 percent a year at least, two sources close to Audi said. Its profit margin in the first half of this year was 8.9 percent. The bulk of the $12 billion cost savings would come from cutting research and development costs, the sources said. A spokesman at Audi's headquarters in Ingolstadt, Germany, declined comment. German business daily Handelsblatt reported the cost-savings target and profitability plans earlier on Sunday. Audi also aims to free up money for investments in zero-emission technology by developing a new production platform with Porsche, allowing both VW premium brands to save money by sharing components and modules. Audi is grappling with car recalls, prosecutor investigations, and persistent criticism from unions and managers over the diesel emissions scandal and its post-dieselgate strategy. Sources told Reuters on Friday that four of the brand's seven top executives are earmarked for dismissal in the near future. On Sunday, sources said the dismissals were discussed by supervisory board members last Thursday but a formal decision has yet to be taken. Reporting by Andreas CremerRelated Video: Featured Gallery Audi E-Tron Quattro View 11 Photos Image Credit: Reuters Green Plants/Manufacturing Audi Emissions Technology Emerging Technologies Diesel Vehicles Electric Luxury e-tron dieselgate diesel emissions

Audi R8 LMX has frickin' lasers for headlights

It might look like just another Audi R8, but Ingolstadt tells us this one is different: it is the limited edition Audi R8 LMX (click image above to enlarge) with laser-enhanced LED high-beam headlights. Audi introduced the laserlight technology on its R18 E-tron Quattro LMP1 race car and then promised a production version of it at this year's Consumer Electronics Show. The eyes on the R8 LMX employ the same method when traveling above 37.3 miles per hour, utilizing a tiny laser module in each headlight that, after conversion to white light, can throw a beam about 1,640 feet down the road.
Because no one should ever stop at lasers, buyers of the limited-to-99 examples of the R8 LMX will also get a more powerful engine, with 570 horsepower erupting from the mid-mounted V10; that's ten more horses than came with the R8 V10 GT introduced last year, but the 0-62 mile-per-hour time hasn't budged from 3.4 seconds. It comes in coupe form only, dressed in Ara Blue paint with carbon accents all around, exclusive wheels, red brake calipers, and a black Nappa leather interior with contrasting blue bits.
The order book is open now, and deliveries will begin this summer for those willing to lay down 210,000 euros for the privilege of using one of Superman's powers for good, as standard (the BMW i8 has laser-equipped high beams, but as an option). We won't see them here, though, for as with Matrix Beam lighting and Audi's sequential turn signals, US laws forbid such shenanigans. The press release below has more info.

Audi RS3 spy shots foreshadow an ultra-hot hatch

Not all vehicle prototypes and mules require heavy camouflage - sometimes they can be hidden in plain sight. That's probably what Audi was hoping for while testing its new RS3 wearing S3 duds, but thanks to some visual and audible telltales, our spy photographers were able to recognize this as a precursor to the marque's ultra-hot hatch testing near the Nürburgring.
Our photographer noticed the signature exhaust note of a five-cylinder engine, which suggests the RS3 could borrow its motivation from the excellent TT RS. Producing at least 340 horsepower, this 2.5-liter turbo powerplant could be the perfect answer for the new A45 AMG from Mercedes-Benz. The big brakes on this RS3 mule give us our best idea about the car's high-performance intentions, with Audi RS wave brake rotors and six-piston calipers peering out from behind the oversized wheels.
In production form, the RS3 should have a much different appearance from what you see here, with sportier design cues including oval-shaped dual exhaust outlets and a more aggressive front fascia. While we're still waiting for our first taste of the S3 in the North America, we'll be holding our breath for the RS3 to make its way here, as well.