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BMW expects China to pass US as its top market in 2013

When you combine two billion citizens, 100 cities with more than a million inhabitants and an economy that's as unrestrained as Jim Cramer on an Adderall binge, China's explosive auto industry growth shouldn't be a huge surprise. Audi already lists the communist country as its largest market, while Mercedes-Benz is expecting it to be there in the next few years. Now, according to a report from Automotive News, BMW is expecting the People's Republic to overtake the United States in sales by the end of 2013.
We already discovered the extent that BMW is going to in establishing a dedicated Chinese stronghold, when we explored BMW's Shanghai-based DesignWorks studio ahead of April's Shanghai Motor Show. And while we argued that DesignWorks Shanghai hasn't really borne fruit, it isn't due to a lack of sales.
BMW China has seen a 16-percent jump in year-over-year sales, lead by a 28-percent gain in 5 Series sales. Part of BMW's growth strategy comes from an ever-expanding dealership network. Remember those 100 cities we mentioned with over one million people? According to Karsten Engel, CEO of BMW's Chinese operations, those 100-million-plus city dwellers don't have access to a premium dealership.

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:

2016 Audi R8 looks like a promising second chapter [w/video]

Audi shook up the supercar market when it released the original R8 road car. Now, it's hoping to do the same with the second-generation of the handsome mid-engine star. But where the original R8 was something of an analog supercar, boasting a naturally aspirated V8 and a delightful gated shifter, this new model is something much different. Gone is the popular, high-revving 4.2-liter V8 and the snickety-snack transmission, although the 5.2-liter V10 that joined the original R8 later in its life remains. In base form, it turns out 540 horsepower in the second-gen R8, while the V10 Plus model can be had with an impressive 610 ponies. That's good for a sprint to 60 of just 3.5 seconds and a top speed of 201 miles per hour in the former and 3.2 seconds and 205-mph in the latter. A seven-speed dual-clutch transmission is the sole gearbox, sending power to a revised Quattro all-wheel-drive system that's capable of shunting 100 percent of the engine's torque to the rear axle. Meanwhile, Audi has managed to shave 441 pounds by using a new Audi space frame, with more aluminum and carbon fiber than before. Weighing in at just 3,205 pounds, the R8 is slightly lighter than the new, V8-powered Ferrari 488 GTB, although it's not quite as light as its cousin, the 3,135-lb Lamborghini Huracan. And of course, we can't forget to mention the R8's new look. It's very clearly an evolution of the first-gen's handsome styling. A strong grille and canted headlights, inspired by the TT and the concepts that came before it, highlight the front end, while Audi has opted to bisect the last-gen car's side blades with a body-color section of sheet metal. In back, slim taillights, exhausts that have been integrated into the rear bumper and a central diffuser are the main styling features. Opt for the V10 Plus, and you'll get a sizable rear wing, for added downforce. Take a look at our full gallery of live images from Geneva for a closer look at the new Audi R8.