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Audi rumored to buy Alfa Romeo, officials deny it

For more than two years, Volkswagen has been making public statements about its willingness to buy Alfa Romeo and quadruple the Italian brand's sales, and for just as long, Fiat CEO Sergio Marchionne has replied with some version of "Mr. Piëch, drop it." According to a report in Ward's Auto, all that jousting might be over: it claims that sources close to both Marchionne and Audi CEO Rupert Stadler admit that the two are in talks for Audi to buy not just Alfa Romeo, but a production plant in Italy. In fact, a final deal could possibly include partsmaker Magnetti Marelli.
Against that backdrop, a report by German news weekly Stern quotes a Fiat spokesmen as saying it doesn't comment on rumors and an Audi rep has said flatly that "There is no substance in the news." If a sale is being arranged, the timing would seem to point to how eager Fiat is to raise cash to complete its major initiatives. Even though Alfa Romeo continues to delay its return to the US, it just showed off the production version of the 4C at the Geneva Motor Show (shown above) and said that preferred Fiat dealerships here would get them. Then there's Alfa's recently concluded deal with Mazda to develop a roadster based on the next generation MX-5 Miata - a deal that would seem to help both the Italian and Japanese brands.
The monetary issues are troublesome, though. Fiat is taking a beating in the European market and its weak-kneed balance sheet is delaying gotta-have-it products like the Jeep Cherokee. Fiat has been talking to banks about getting money to buy the rest of Chrysler and those financial institutions have also raised issues about debt and cash reserves, and the nasty game of chess Fiat is playing with the United Auto Workers (and now the court system about the portion of Chrysler it doesn't own) could end up blowing another hole in Marchionne's plans. It is possible that this could finally have convinced Fiat to at least see how serious Audi's parent company, Volkswagen, is about buying Alfa Romeo. Or it could be just another rumor.

Prop-driven VW Beetle hopes to land in Bonneville [w/video]

Sometimes you meet folks who, when they tell you "Hey, I have an idea," your reflex response is to stop what you're doing and tell yourself, "Get ready...." We imagine Mike Niemans is one of those folks, and the idea in question is putting a tank engine on a Type 1 Volkswagen Beetle. Not just any old tank engine - as if there were such a thing when we're talking about putting them in cars - but a 668-cubic-inch, 220-horsepower radial engine built by Continental in 1941 and procured from an M2 tank.
In the image above Nieman is using the tank clutch hub to get the motor set up, but in one of the images below you can see what really belongs back there is: a two-inch, reverse-pitch prop taken from a wind generator. He says there's enough mojo with the propeller action to get the car rolling down the runway like a jet when he gives it gas - and speaking of gas, the engine's been refitted to run on propane.
After a few safety tweaks Nieman's going to take the matte-black Beetle to Bonneville, "put the prop on, let her go and see what happens!" We can't wait to see the video of that. There are two shakedown videos below to get you ready.

Volkswagen's 261-mpg hand-built XL1 headed for Geneva

After years of rumors, development and testing, the Volkswagen XL1 is finally about to become a reality. The project that began life as a daring 1-Liter concept car in 2002, will finally get its production-ready curtain call at the Geneva Motor Show in just a few weeks.
As soon as it hits the streets, the two-seat XL1 will instantly become the most fuel-efficient and most aerodynamic production car in the world. The car uses a plug-in hybrid system to achieve mind-blowing consumption of just 0.9 liters of diesel fuel consumed every 100 kilometers (and average of roughly 261 miles per gallon). Plus, the XL1 can go up to 50 kilometers on its battery power alone. Coefficient of drag is a miniscule 0.189, thanks to a tiny frontal area and an obviously slippery shape.
XL1 power comes from a two-cylinder diesel motor connected to a seven-speed dual-clutch gearbox, while the 20 kW electric motor is fed by a lithium-ion battery. Both combine to give the XL1 performance figures that are, while not stirring, not shabby considering its extreme frugality: 0-62 miles per hour comes up in 12.7 seconds and top speed is nearly 146 mph.