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If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

The mood at this year’s Paris Motor Show: Quiet

The Paris Motor Show, held every other year in the early fall, typically kicks off the annual cavalcade of automotive conclaves, one that traverses the globe between autumn and spring, introducing projective, conceptual and production-ready vehicle models to the international automotive press, automotive aficionados and a public hungry for news of our increasingly futuristic mobility enterprise. But this year, at the press preview days for the show, the grounds of the Porte de Versailles convention center felt a bit more sparsely populated than usual. This was not simply a subjective sensation, or one influenced by the center's atypically dispersed assemblage of seven discrete buildings, which tends to spread out the cars and the crowds. There were not only fewer new vehicles being premiered in Paris this year, there were fewer manufacturers there to display them. Major mainstream European OEM stalwarts such as Alfa Romeo, Fiat, Nissan and Volkswagen chose to sit out Paris this year, as did boutique manufacturers like Bentley, Aston Martin and Lamborghini. This is not simply based in some antipathy on the part of the German, British and Italian manufacturers toward the French market — though for a variety of historical and societal reasons that market may be more dominated by vehicles produced domestically than others. Rather, it is part of a larger trend in the industry. Last year, Mercedes-Benz announced that it would not be participating in the flagship North American International Auto Show in 2019 — and that it might not return. Other brands including Jaguar/Land Rover, Audi, Porsche, Mazda and nearly every exotic carmaker have also departed the Detroit show. Some of these brands will still appear in the city in which the show is taking place, and host an event offsite, to capitalize on the presence of a large number of reporters in attendance. And even brands that do have a presence at the show have shifted their vehicle introductions to the days before the official press opening in an attempt to stand out from the crowd. In many ways, this makes sense. With an expanding number of automakers, with diversification and niche-ification of models and with wholesale shifts that necessitate the introduction of EV or autonomous sub-brands, there is a growing sense that, with everyone shouting at the same time, no one can be heard.

2017 Bentley Mulsanne defines the latest in handcrafted luxury

It takes 144 craftsmen roughly 399 hours to build a Bentley Mulsanne. In today's world of automation and just-in-time parts delivery, such statistics sound ridiculous. But this old-school approach to vehicle assembly earns this beast its status as Bentley's flagship. It takes about a third of that time to assemble a Continental GT, for instance, which is one reason the Mulsanne is so expensive. It's also why Bentley moves more than five Continental models for every Mulsanne it sells. Bentley has a brand-new crown jewel coming soon to dealerships as a 2017 model, and it will debut next week at the 2016 Geneva Motor Show. An Extended Wheelbase version joins the base Mulsanne and the Speed, pushing the lineup to three for the first time. Although Bentley officials take pride in the fact they are the largest producer of 12-cylinder engines in the world, the Mulsanne continues to soldier forth with the long-serving 6.75-liter V8. While this L-Series engine traces its roots all the way back to 1959, as evidenced by its cam-in-block overhead-valve design, it's been fully modernized with electronic controls and twin turbochargers. The result is 505 horsepower and 752 pound-feet of torque (or 530 hp and 811 lb-ft in the Speed), routed through a ZF eight-speed automatic transmission to the rear wheels. This is the same engine that has powered flagship Bentleys since 2010, and it's effortlessly capable of pushing the Mulsanne from 0-60 in 5.1 seconds and all the way up to a top speed of 184 miles per hour. The upgraded Mulsanne Speed improves those figures to 4.8 seconds and 190 mph. That's plenty of performance for this kind of vehicle, weighing as it does nearly 6,000 pounds. With that kind of power and heft, a solid chassis is a must. Active engine mounts join new suspension bushings for 2017, and the air suspension system has been updated. Continuous Damping Control and a Drive Dynamics Control System with three factory and one custom setting are standard. Also new are tires codeveloped with Dunlop that have foam-filled cavities to reduce interior cabin noise. Where the styling of the outgoing Mulsanne is smooth and stately, the new one is more angular and modern. At the front, the traditional upright grille remains, but it's over three inches wider than before, and is slatted with vertical vanes in polished stainless steel that are meant to recall Bentley classics from the 1930s.