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Italian investigators search Lambo headquarters in VW probe

Italian investigators searched Lamborghini headquarters on Oct. 15 to look for evidence of managers' involvement in Volkswagen's emissions cheating. VW's main office in Verona was also inspected, according to Reuters. Lamborghini is owned by Volkswagen, and Lambo in turn is listed as the owner of VW Group Italia. Authorities wanted to find out if employees were conscious that the vehicles were skirting emissions rules. "It is one thing if I sell water and pretend it's wine, but if I sell water believing it is wine it's different." Verona chief prosecutor Mario Giulio Schinaia said to Reuters. Italian newspaper Gazetta del Sud reported that several managers in Italy were under investigation for alleged fraud. Prosecutors in Germany have also been rigorously investigating VW, and they recently staged a similar raid on the company's headquarters in Wolfsburg, Germany. The automaker reportedly turned over documents and other data relating to the software defeat device. Meanwhile, VW's internal investigation has turned up little wrongdoing, though a recent leak suggested otherwise, and at least 30 managers could have known about the defeat device. The automaker has disputed that figure. Volkswagen of America CEO Michael Horn testified before Congress that he believed only a few individuals were involved. The situation hasn't been easy on VW in the US, either. The Department of Justice has also been pursuing an investigation into the automaker. Plus, state attorneys general are filing lawsuits against the company for defrauding customers. VW has until Nov. 20 to explain a repair for the problem to the California Air Resources Board. Related Video:

VW brands excluded from Wards 10 Best Engines for 2016

You definitely won't be seeing a powerplant from Volkswagen or Audi on the 2016 Ward's 10 Best Engines list. In a serious rebuke against them, WardsAuto is excluding all VW/Audi powertrains for at least this year after the German automakers' ongoing emissions regulations evasions. There's no guarantee of the companies returning for 2017, either. In a story on its website, WardsAuto executive editor Tom Murphy writes that the ban lasts "until we are convinced the culture of deceit has been purged, fines have been paid and regulators are satisfied." That could be a while, the way things are looking. The exclusion knocks three powertrains out of the running for this year's list. As a winner last year, WardsAuto would usually test VW's 1.8-liter turbocharged four-cylinder again for 2016. Plus, it planned to check out the 2.0-liter turbocharged four-cylinder from the Audi A6 and the plug-in hybrid from the A3 Sportback E-Tron. In the story, Murphy finds VW's actions particularly despicable because of what they could be doing to the popularity of diesel passenger cars in this country. "BMW, Mercedes-Benz, General Motors, and Fiat Chrysler also sell light-duty diesel engines in the US, but their sales outlook suddenly has grown murky, thanks to VW's shenanigans," he writes. So far, Jaguar Land Rover is remaining confident of US consumers continuing to buy diesel models, though. We'll be able to see the real effects of VW and Audi's ban in a few months because the 2016 Ward's 10 Best Engines will be published December 10. With two major automakers out of the running, their rivals will likely greet this as a better chance to make the grade.

Audi prepping a flex-fuel A3 for Latin America

Volkswagen's Audi division hasn't fared well from its parent company's diesel-emissions scandal, especially in the US and Europe. In South America, though, Audi is set to unveil its first vehicle of the flex-fuel variety, according to Nseavoice. Perhaps the German automaker can earn some good karma down in the Southern Hemisphere. The model is the 2016 Audi A3, which is made in Audi's Brazil factory. The engine is a 1.4-liter variety, and it will be able to run on either conventional gasoline or ethanol, or a blend of both. The decision makes sense because ethanol is plentiful in Brazil since the government has long pushed for it and there's plenty of sugar-cane feedstock to produce the stuff. Audi can use all of the positive news it can get, especially in the wake of VW's diesel-emissions scandal. As many as 11 million VW and Audi diesels may have been fitted with software that cheats emissions-testing systems. One result from the scandal's proverbial shrapnel is that the Audi A3 TDI diesel was stripped of its 2010 Green Car of the Year Award by Green Car Journal. The decision marks the first time in the award's history that a winner was stripped of the honor. VW has a long history offering flex-fuel vehicles in Brazil. In 2003, the German automaker was the first to debut a flex-fuel engine, and within two years, VW's Brazil factories were making 300,000 flex-fuel vehicles annually. Other companies have since jumped into Brazil's flex-fuel fray, including Nissan and Honda.