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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:

2017 Audi A4 evolves into a larger, lighter luxury sedan [w/video]

Audi took the evolutionary, rather than revolutionary, approach when it came time to redesign the brand's A4. While the latest generation's look might not set hearts racing, a plethora of tiny tweaks by the engineers manage to make the the four-door larger, up to 264 pounds lighter, and slice the drag coefficient down to 0.23. Audi has made its modern reputation on the style and quality of its interiors, and the new A4 seems to make good on that tradition. In-cabin appointments and tech see a serious upgrade, including offering Audi's fully digital, Virtual Cockpit, instrument panel. In the US, the new A4 arrives for the 2017 model year offering power from either diesel or gasoline. The 2.0-liter TDI is essentially a carryover from the Audi lineup, but the 2.0-liter TFSI sees some big upgrades, including a new cylinder head. It's now rated at 252 horsepower and 273 pound-feet of torque. At launch here, all A4s get a seven-speed S-tronic dual-clutch gearbox. Front-wheel drive and Quattro all-wheel drive are available. For an added dose of forbidden fruit, you can check out the crimson A4 Avant in the gallery above the from Frankfurt Motor Show. Take a good look because this long-roof variant isn't coming to the US. Yes, we're listening to sad violin music, too. Although, the next Allroad is coming here eventually after that higher-riding wagon debuts.

Audi A3 E-Tron could launch in October in US

When we test drove the Audi A3 E-Tron plug-in hybrid in Europe last summer, Audi was talking about the vehicle's introduction in the US, but left the exact date up in the air. Summer or Fall 2015 was as specific as anyone was willing to get. Now it looks like the plug-in will arrive in October. One of the rumors we heard over the last few months was that the A3 E-Tron was not ready for the US because of poor cold-weather performance. From what we've heard, under a certain temperature limit, the engine needs to kick in at all times, no matter what the battery state of charge is, and some European A3 E-Tron owners are disappointed that their EV sometimes isn't all that electric. Audi's solution needs to take into consideration how to balance utilization of battery power in less-than-optimal temperature ranges with passenger comfort and how any excess battery use impacts longevity. Audi's "fairly conservative" position will "ensure the long-term credibility of the E-Tron platform and plug-in technology." - Brad Stertz Brad Stertz, the corporate communications manager for Audi of America, told AutoblogGreen that, "Audi is taking a fairly conservative position to ensure the long-term credibility of the E-Tron platform and plug-in technology, while still creating the best experience for our drivers in each region. Overall, I think it is safe to say low temps affect performance in all vehicles to some degree, but that plug-ins face unique challenges that we will continue to work through with the A3 e-tron and other plug-in models to follow." Stertz also said in April that the US configuration for the A3 E-Tron was still being fine-tuned. For example, there were some software differences under consideration to meet US driving preferences. Looks like we only have four more months to wait and see. Related Video: