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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.

Bentley plotting Mulsanne performance model for Paris debut

Between three distinct body styles and numerous engine specifications, Bentley has made more versions of the Continental over the years than we would care to count. But one thing it has, by and (very) large left alone is the Mulsanne. Sure, it's done some special editions and some extra equipment packages - it's even toyed with the idea of a two-door convertible version - but at the end of the day, the Mulsanne soldiers on as a four-door sedan with one engine and one engine alone. That may be about to change, however.
Fueled by ambiguous pronouncements from Bentley's returning chief Wolfgang Dürheimer, rumors from the UK suggest that the Flying B marque is preparing a more performance-focused version of the Mulsanne to debut at the Paris Motor Show this October.
Details are few and far between, but we'd expect the Mulsanne's long-serving 6.75-liter V8 engine to be further tuned beyond its current specification of 505 horsepower and 752 pound-feet of torque, accompanied by a stiffer suspension, bigger brakes and other upgrades. Historically Bentley would turbocharge the Mulsanne's predecessors (to turn the 90s-era Brooklands, for instance, into the Turbo R), but the Mulsanne's engine is already spooled up, so the British automaker will likely have to massage the extra muscle out another way.

Bentley, Lamborghini consider foreign production [w/poll]

Would a Bentley be a Bentley if it weren't manufactured in Great Britain? Would a Lamborghini be a Lamborghini if it were built outside of Italy? It may be hard to say either way, but we might find out sooner than later, because the latest word coming in from Europe is that the Volkswagen Group is considering expanding production for both these upscale brands outside their traditional homes.
According to the Autovisie section of Dutch newspaper De Telegraaf, the issue for both automakers comes down to their ambitious expansion programs. Both Bentley and Lamborghini plan to launch new SUVs - the former's being well under way, the latter's still awaiting approval - that would expand their annual production considerably: by 50 percent in Bentley's case, and by as much as 100 percent in Lamborghini's.
For now, both marques intend to handle the added production with additional assembly lines at their current facilities in Crewe and Sant'Agata Bolognese, respectively. But both could soon outgrow their relatively small plants - and with the Volkswagen Group operating countless factories across Europe and around the world, it wouldn't be hard to see these manufacturers shifting excess production outside of their home countries.