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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.

Audi testing long-tail version of R18 e-tron quattro for Le Mans

Race teams are always looking for ways to shave hundredths of seconds of their lap times. Case in point: Audi is making some slight changes to its prototype racecar to make it ever so much more slippery as it cuts through the air.
Debuting at the second round of the FIA World Endurance Championship at Spa on May 4, Audi will be testing a long-tail version of its R18 E-tron Quattro racecar. As its name suggests, the long-tail car gets a lengthened rear section with the goal of improving aerodynamics. The long-tail will be run alongside the standard version of the racecar as a testbed for possible changes that might be in store, heading into the 24 Hours of Le Mans.
Audi did not say how many inches were added to the racecar, but as you can see in the image above, "long-tail" definitely doesn't take on the same meaning of classic long-tail cars of the past such as the Porsche 917. More information about the car, Audi's team and even some info about the track itself can be found below.

Audi A3 E-Tron plug-in hybrid set to whiz into Geneva

The Audi A3 E-tron, which we drove in prototype form last year, is headed to the 2013 Geneva Motor Show next month. The plug-in hybrid will feature a total of 204 horsepower and 258 pound-feet of torque from the combination of a turbocharged 1.4-liter engine and a 75-kW electric motor. That motor itself is positioned between the internal combustion engine and the machine's six-speed dual-clutch transmission. The setup is good enough to scoot the A3 E-tron to 62 miles per hour in 7.6 seconds and crank out a top speed of 138 mph. Perhaps more impressively, the hatch can whir its way to 80 mph on all-electric power with an EV range of 31 miles.
Audi claims the A3 E-tron gives the world a "realistic glimpse into the future of mobility," so it's a bit unclear if the model will see production. We're encouraged by the specificity of Audi's press release (which is full of stats) and the fact that they don't label this vehicle a concept. You can check out the full press release below and judge for yourself.