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VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.

Audi on Demand pilot program launches in San Francisco

Customers eager to drive a new Audi but unwilling or unable to plunk down the purchase price for one will be intrigued by the launch of the new Audi on Demand program. Initially being rolled out in San Francisco, Audi on Demand is based around an iPhone app that allows clients to order up a new Audi of their choosing on a day-by-day basis for up to 28 days in a row. Order an Audi through the app and a "personal concierge" will deliver the car anywhere in the city – curbside, driveway, parking lot, office building... pretty much anywhere the customer chooses. The concierge will even help set up the audio and navigation systems to the customer's preferences. And if the customer isn't there to receive the vehicle in person, he or she can simply unlock it through the app, start it up and drive off. The service is being made available on a broad range of Audi models, from the A4 all the way up to the R8. Customers can even specify a child seat or (on an Allroad or Q5) a ski or bike rack, and are guaranteed that the vehicle they select will be the one they get, right down to the color and trim. Though being launched at first only in San Francisco, Audi says it will roll out the program in other American cities "in the coming years." In announcing the program, Audi also revealed that it's planning to launch Audi at Home as well, a "micro-sharing" service that will allow residents of select condo complexes to share a fleet of Audis as well. These, of course, are just the latest smartphone-enabled conveniences being introduced by the German automaker, following its collaboration with Amazon and DHL for in-trunk delivery. Related Video: Audi launches innovative mobility program: Audi on demand April 27, 2015 | SAN FRANCISCO, California - Audi on demand launches beta program in San Francisco - Innovative premium service allows customers to choose their preferred Audi model via iPhone app - Personal concierge delivers vehicle to a San Francisco location of customer's choosing Audi today introduced Audi on demand, an innovative mobility program that gives customers a new way to experience the Audi brand and its range of vehicles at the touch of a button. With Audi on demand, customers can reserve an Audi by the day for up to 28 days. The premium service is currently available in San Francisco as part of a beta program and will be rolled out across additional U.S. cities in the coming years.

Are supercars becoming less special?

There's little doubt that we are currently enjoying the golden age of automotive performance. Dozens of different models on sale today make over 500 horsepower, and seven boast output in excess of 700 hp. Not long ago, that kind of capability was exclusive to supercars – vehicles whose rarity, performance focus, and requisite expense made them aspirational objects of desire to us mortals. But more than that, supercars have historically offered a unique driving experience, one which was bespoke to a particular model and could not be replicated elsewhere. But in recent years, even the low-volume players have been forced to find the efficiencies and economies of scale that formerly hadn't been a concern for them, and in turn the concept of the supercar as a unique entity unto itself is fading fast. The blame doesn't fall on one particular manufacturer nor a specific production technique. Instead, it's a confluence of different factors that are chipping away at the distinction of these vehicles. It's not all bad news – Lamborghini's platform sharing with Audi for the Gallardo and the R8 yielded a raging bull that was more reliable and easier to live with on a day-to-day basis, and as a result it went on to become the best-selling Lambo in the company's history. But it also came at the cost of some of the Italian's exclusivity when eerily familiar sights and sounds suddenly became available wearing an Audi badge. Even low-volume players have been forced to find economies of scale. Much of this comes out of necessity, of course. Aston Martin's recent deal with Mercedes-AMG points toward German hardware going under the hood and into the cabin of the upcoming DB11, and it's safe to assume that this was not a decision made lightly by the Brits, as the brand has built a reputation for the bespoke craftsmanship of its vehicles. There's little doubt that the DB11 will be a fine automobile, but the move does jeopardize some of the characteristic "specialness" that Astons are known for. Yet the world is certainly better off with new Aston Martins spliced with DNA from Mercedes-AMG rather than no new Astons at all, and the costs of developing cutting-edge drivetrains and user interfaces is a burden that's becoming increasingly difficult for smaller manufacturers to bear. Even Ferrari is poised to make some dramatic changes in the way it designs cars.