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Volkswagen decides to keep Lamborghini and Ducati, transfers Bentley to Audi
Tue, Dec 15 2020Investors in the market for a high-end Italian manufacturer that peddles performance will need to keep looking. Volkswagen announced it will hang on to Lamborghini and Ducati in the foreseeable future. Executives in Wolfsburg, Germany, are making far-reaching changes to the Volkswagen Group to reboot it with a big focus on technology. Credible rumors claimed that the people in charge of the carmaker wanted to carve out Lamborghini — which owns Ducati — and ultimately list it, or at least a chunk of it, on the stock market in order to fast-track the group's electrification strategy. Going electric is expensive, so selling Lamborghini would have helped fund the expansion, and high-octane supercars don't easily go hand-in-hand with zero-emissions cars. "Volkswagen needs to change from a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering to a digital company that reliably operates millions of mobility devices worldwide," summed up Herbert Diess, the group's boss, during a September 2020 meeting. His team ultimately decided not to fully divest both brands. It's too early to tell whether part of Lamborghini will be listed on the stock market, as some insiders have suggested, or if those plans are off the table, too. Changes are coming to Bentley as well. While it's not being spun off either, it will fall under the Audi umbrella starting on March 1, 2021. Volkswagen explained linking the two companies will "allow for synergies to be achieved as part of the electrification strategy of the two premium brands," a statement which suggests they will share a growing number of components during the 2020s. Unverified rumors claim that Bentley will notably get its own version of an ultra-luxurious electric SUV code-named Landjet that Audi is currently developing. We've reached out to Bentley for more details, and we'll update this story if we learn more. Bugatti's future wasn't mentioned in the release; unconfirmed reports suggest it will be traded for a stake in Croatian start-up Rimac. Volkswagen's supervisory board also reaffirmed its support for Diess, who was appointed CEO in 2018 and who has played a significant role in the company's transformation. Finally, the board approved the development of what a statement refers to a future leading electric vehicle sold by the Volkswagen brand that will be developed and manufactured in Wolfsburg.
Weekly Recap: Mercedes continues the pseudo-coupe craze with AMG-tuned CUV
Sat, Dec 13 2014But as BMW's X6 has demonstrated, sport sells in in the crossover segment, and Mercedes is giving the people what they want. BMW proved there is a market for crossover utility vehicles designed to look like coupes – as much as a vehicle with four doors and noticeable ground clearance can look like a coupe, anyway. Now comes the reply from Mercedes-Benz: the GLE Coupe. The rakish crossover is a harbinger of things to come from Mercedes, as it begins the company's transition to a new nomenclature and marks the debut of the AMG Sport line. It also continues the recent coupe craze. Designers from many automakers, like Nissan and Volkswagen, have increasingly turned to swoopy, dramatic styling to make utility vehicles and sedans seem more desirable. By revealing the GLE 450 AMG Sport model first, Mercedes is clearly hoping to cast the GLE Coupe as a sportier, lifestyle-oriented alternative in its lineup of beefy crossovers and SUVs. Mercedes used the word "sport," or a variation of it, 53 times in its press release, so uh yeah, it's sporty. It's not an empty promise: Benz means business with the AMG Sport line. This GLE Coupe gets a 3.0-liter biturbo V6 rated at 362 horsepower and 384 pound-feet of torque paired with Mercedes' new nine-speed automatic transmission, and it runs with 4Matic all-wheel drive. Specs on the other GLE Coupe models were not disclosed. But as BMW's X6 has demonstrated, sport sells in in the crossover segment, and Mercedes is giving the people what they want. After all, more than 260,000 people have bought X6s since 2008, and Mercedes wants a piece of that. From certain angles, the GLE Coupe even looks vaguely like an X6. "This is really a vehicle that is all about status," said Dave Sullivan, product analysis manager for research firm AutoPacific. "You can buy a SUV that doesn't have the inherent qualities of a SUV, such as cargo hauling. People will likely be drawn to the looks. Coupes are all the rage." BMW, however, isn't running from the fight, and the updated 2015 X6 is arriving in showrooms this month. It also added a smaller sibling, the X4, to its coupe-crossover stable in July. The GLE Coupe arrives next year, though Mercedes hasn't specified exactly when it will hit showrooms from the factory in Alabama, or specified details on the rest of the non-AMG Sport models. In 2008, it was surprising the X6 was a hit. In 2015, it will be even more surprising if the GLE Coupe isn't.
Bentley shifting W12 engine production to UK
Thu, 20 Mar 2014Who would you think would be the largest producer of 12-cylinder engines in the world? Mercedes? BMW? Ferrari? Think again: as you might have guessed from the headline, it's Bentley. The thing is that, while all Bentley automobiles are manufactured in the UK, its engines aren't: while the 6.75-liter V8 in the Mulsanne is made at home, the innovative 6.0-liter twin-turbo W12 engine in Continental models so equipped (like the newer 4.0-liter twin-turbo V8) is shipped in from Germany. But that won't be the case any longer.
Bentley has just announced that production of the W12 engine is moving to its home base in Crewe by the end of this year. The shift in production (which follows the migration of the Flying Spur from Dresden to Crewe in 2007) will create 100 jobs in the UK - a country which employs some 142,000 workers in the automotive sector - and produce as many as 9,000 engines per year. That in and of itself would account for the vast majority of the 10,000-plus cars Bentley made last year, but will also make Bentley an exporter of engines for the first time in its history.
Right there at the factory, Bentley will fit the engines into twelve-cylinder versions of the Continental GT, GTC and Flying Spur, and send some back to Germany for use in the Audi A8. Applications within the Volkswagen brand itself like the Phaeton and Touareg no longer use the W12 engine, but could conceivably use it again in the future - they'll just have to bring them in from England is all.