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Audi rumored to buy Alfa Romeo, officials deny it

For more than two years, Volkswagen has been making public statements about its willingness to buy Alfa Romeo and quadruple the Italian brand's sales, and for just as long, Fiat CEO Sergio Marchionne has replied with some version of "Mr. Piëch, drop it." According to a report in Ward's Auto, all that jousting might be over: it claims that sources close to both Marchionne and Audi CEO Rupert Stadler admit that the two are in talks for Audi to buy not just Alfa Romeo, but a production plant in Italy. In fact, a final deal could possibly include partsmaker Magnetti Marelli.
Against that backdrop, a report by German news weekly Stern quotes a Fiat spokesmen as saying it doesn't comment on rumors and an Audi rep has said flatly that "There is no substance in the news." If a sale is being arranged, the timing would seem to point to how eager Fiat is to raise cash to complete its major initiatives. Even though Alfa Romeo continues to delay its return to the US, it just showed off the production version of the 4C at the Geneva Motor Show (shown above) and said that preferred Fiat dealerships here would get them. Then there's Alfa's recently concluded deal with Mazda to develop a roadster based on the next generation MX-5 Miata - a deal that would seem to help both the Italian and Japanese brands.
The monetary issues are troublesome, though. Fiat is taking a beating in the European market and its weak-kneed balance sheet is delaying gotta-have-it products like the Jeep Cherokee. Fiat has been talking to banks about getting money to buy the rest of Chrysler and those financial institutions have also raised issues about debt and cash reserves, and the nasty game of chess Fiat is playing with the United Auto Workers (and now the court system about the portion of Chrysler it doesn't own) could end up blowing another hole in Marchionne's plans. It is possible that this could finally have convinced Fiat to at least see how serious Audi's parent company, Volkswagen, is about buying Alfa Romeo. Or it could be just another rumor.

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Audi mulling producing version of Quattro showcar, just not sure which one [w/poll]

Head of design for Audi, Wolfgang Egger, has told Auto Express that a reborn Quattro could enter production, but bosses for the company haven't yet decided whether to base it on the Sport Quattro concept that just debuted at this week's Frankfurt Motor Show or the smaller Quattro concept that was revealed at the 2010 Paris Motor Show.
While both draw their inspiration from the original Ur-Quattro of the 1980s, they vary wildly in both size and choice of powertrain. The 2010 Quattro concept was based on Volkswagen's MQB platform, shared with such vehicles as the Golf and Audi A3. The Sport Quattro, meanwhile, was built atop the company's larger MLB platform that's used almost exclusively for Audi models, including the A5, which is also a coupe.
Under their hoods, the 2010 Quattro concept simply employs a version of the same 2.5-liter engine used in the TT RS, tuned to deliver 408 horsepower, while the Sport Quattro goes nuclear with a twin-turbo V8 hybrid powertrain that develops 700 hp and 590 pound-feet of torque. Both, of course, employ quattro all-wheel drive just like their forebearer.