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Volkswagen posts quarterly profit despite drop in sales

Volkswagen returned to profit in the third quarter as surging Chinese demand for luxury cars helped offset a 1.1% drop in vehicle deliveries due to the pandemic, sending its shares as much as 3% higher on Thursday. The German automaker's return to the black comes amid spiking coronavirus cases in Europe that led governments in France and Germany to order their countries back into strict national lockdowns on Wednesday. "The coronavirus remains a central problem," Volkswagen Chief Financial Officer Frank Witter said in a conference call with reporters. "This situation now is anything but relaxed." But Witter said the group expected the economic recovery to continue and did "not anticipate any nationwide lockdowns in larger markets." Witter said the takeover of U.S. truck maker Navistar International by Volkswagen's trucking unit Traton was an important acquisition, but the "current economic climate will not make this easy." Volkswagen reiterated it expects to post a profit for the full year, saying its business "recovered noticeably" in the third quarter as sales in China of premium vehicles, including Audi and Porsche sports cars, rose 3%. The quarterly performance was also aided by a series of cost-cutting measures launched earlier this year. Volkswagen said its net liquidity rose to 24.8 billion euros from 18.7 billion at the end of the second quarter. Excluding one-time items, third-quarter operating profit was 3.2 billion euros ($3.8 billion), down from 4.8 billion euros a year earlier, but up from a second quarter loss of 1.7 billion. In a note to clients, Jefferies analyst Philippe Houchois described the results as a "solid performance with strong cash, but relatively muted in the context of the (auto) sector recovery." Last week, German rival Daimler reported a record 24% jump in Chinese demand for its Mercedes-Benz cars, boosting its margins in the third quarter. Italian-American Fiat Chrysler Automobiles and Peugeot manufacturer PSA Group both also posted solid results this week. Witter said Volkswagen could not say for sure whether it would meet EU CO2 emissions targets this year, adding "it will be a tough race." At 1030 GMT, Volkswagen shares were up 2.9% at 129.20 euros. Related Video: Earnings/Financials Audi Bentley Bugatti Lamborghini Porsche Volkswagen

Audi highlights headlights on upcoming new R8

Audi is preparing to roll out an all-new R8... but it's not about to reveal the whole thing at once. So in the first in what promises to be a series of teasers, the German automaker is showing off the new supercar's headlights. (Or headlight, we should say, in the singular.) Not unlike the R8 LMX revealed in Paris, the second-generation Audi supercar will incorporate LED headlights with an optional laser high-beam module. Unfortunately since laser headlights are illegal in the United States, the option isn't likely to be offered here. That is, at least, until Audi succeeds in convincing federal regulators otherwise. Although the teaser image above, like the press release below, may shine the light (so to speak) principally on the headlights, the shrouded shape also gives us a (little) bit to chew on. Yes, it will be available in blue, but beyond that we can expect the new R8 to incorporate slightly more angular lines than the model it replaces, with a more pronounced trapezoidal grille up in an overall design similar to the new TT, only more so. But then we already knew that much and more from the undisguised image that leaked out a little over a week ago. Ingolstadt, 2015-02-16 Audi reveals laser headlights for the new R8 - New mid-engine sports car features high-tech headlights - Laser high-beam offers high light intensity and excellent range Audi is revealing the headlights of its new R8* as the first of a number of technology highlights of the top sports car. The R8 uses LED headlights which can be supplemented by a laser high beam lighting module as an option. The new R8 will set new standards among high-performance sports cars – including in its lighting technology. As an option, the latest car development by Audi can be equipped with a laser spot as the high-beam headlight. The special appeal of laser lighting is that it uses high-intensity laser diodes, which generate a lot of light energy from a very small component. Compared to LED high-beam headlights, laser high-beams attain nearly twice the lighting range. Each headlight contains one laser module that operates with four high-intensity laser diodes. This module bundles the four intense blue-light laser beams. Then a phosphor converter transforms the blue light into pure white light. An identifying characteristic of the laser headlights is their blue light signature. Standard equipment in the new R8 includes an LED headlight system.

2015 Audi S3 Sedan

For the last few years, Audi has been publicly toying with building a successor to its Ur-Quattro, a model still glowing in a gritty patina of motorsports glory decades after it left the scene. If anything, the rally car's halo has burned brighter as Audi has matured into a world luxury superpower. Since 2010, the German automaker has shown two different concept cars that attempted to re-bottle the legend's lightning, and it's still trying to figure out whether to market a production model. Despite that conundrum (and not to take anything away from the seminal Ur-Quattro), it's easy to argue that there are two other cars much more important to Audi's rise from its '80s ashes: the original TT and the B5-generation A4 and its high-performance variants.
The TT thrust Audi into the vanguard of automotive styling while firmly establishing the Volkswagen Group as masters of platform development (the same basic architecture and powertrain guts were employed in a dizzying array of models, from the Golf, Jetta and New Beetle to a number of Škoda products). This unprecedented, flexible building-block approach to new model development has since become the standard of the industry.
In the case of its B5 cars, the A4, S4 and RS4 put Audi back on the radar of rival German automakers, and more importantly, they grew the Four Rings' sales by leaps and bounds while reminding the world that all-wheel drive needn't only benefit hardcore performance cars and utility vehicles. Fast-forward to today, and the A4 has established itself as the bedrock of Audi's lineup, but it's also grown over its four generations to become substantially larger, heavier and costlier than the model that debuted back in 1996 America. That's created a vacuum at the bottom of the range that the company has inadequately addressed - until now.