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Audi CEO says brand's EVs are almost as profitable as its other cars

After, oh, a hundred years or so of building vehicles primarily powered by internal combustion engines, automakers around the world have been and still are pumping billions of dollars into the development of electric vehicle technology. Everything from platforms and batteries to motors and the software to control it all requires untold hours of development, and that takes time and money. Fortunately, it's not going to take long for that massive investment to start paying off, at least according to Audi CEO Markus Duesmann, who told Reuters in an interview that "The point where we earn as much money with electric cars as with combustion engine cars is now, or ... next year, 2023. They are very even now, the prices." As a brand, Audi contributed more than a quarter of overall profit for the massive Volkswagen Group, which has such powerhouse brands as Volkswagen and Porsche among others. Under the Audi umbrella are Lamborghini, Bentley and Ducati, and it seems those high-end branches aren't going anywhere, at least for now. "These brands ... are very valuable very profitable brands, where we can even expand the synergy level in the future," Duesmann said in the interview. "There are no plans whatsoever to get rid of them." Despite the overall profitability of the brand, the ongoing global chip crisis is causing headaches. "We had a very strong first half in 2021. We do expect a much weaker second half," said Duesmann, who added, "We really have trouble." In fact, so serious is the trouble that the brand is forced into "a day-to-day troubleshooting process" to limit the chip-shortage damage. The good news for the automaker is that Audi has been able to boost its profit margin from 8% prior to the pandemic in 2019 to 10.7% in the first half of 2021. The bad news is that various chip shortages aren't expected to get a whole lot better over the rest of the year. Related video:

Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.

Audi mulling producing version of Quattro showcar, just not sure which one [w/poll]

Head of design for Audi, Wolfgang Egger, has told Auto Express that a reborn Quattro could enter production, but bosses for the company haven't yet decided whether to base it on the Sport Quattro concept that just debuted at this week's Frankfurt Motor Show or the smaller Quattro concept that was revealed at the 2010 Paris Motor Show.
While both draw their inspiration from the original Ur-Quattro of the 1980s, they vary wildly in both size and choice of powertrain. The 2010 Quattro concept was based on Volkswagen's MQB platform, shared with such vehicles as the Golf and Audi A3. The Sport Quattro, meanwhile, was built atop the company's larger MLB platform that's used almost exclusively for Audi models, including the A5, which is also a coupe.
Under their hoods, the 2010 Quattro concept simply employs a version of the same 2.5-liter engine used in the TT RS, tuned to deliver 408 horsepower, while the Sport Quattro goes nuclear with a twin-turbo V8 hybrid powertrain that develops 700 hp and 590 pound-feet of torque. Both, of course, employ quattro all-wheel drive just like their forebearer.