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Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.

Audi reveals virtual reality 'dealership in a briefcase'

Virtual reality still seems like technology that should be lumped in with the flying car and colonizing the moon as the sort of perennially "almost-here" Next Big Thing that never quite arrives. However, devices like gaming's Oculus Rift suggests that it's too soon to write off VR just yet, and Audi apparently agrees. The heart of its new VR Experience is a headset that customers wear that lets them see a virtual car before their eyes. Using the technology, the potential buyer can sit behind the wheel or open up the trunk. A camera tracks their head movements and adjusts the image on the goggles accordingly. To make the whole experience even more immersive, headphones let them hear the sound of the door or listen to the radio. The German automaker claims that the VR Experience technology will be available in "dynamic growth markets" by the end of 2015. The system will essentially offer the entire dealership experience in a device the size of a briefcase, and it'll be possible to view every possible equipment combination and color on all of the brand's models. The immersive hardware sounds amazing, if it's as good as the automaker claims. Among other things, VR will allow buyers to pick out just the right color and trim, even if the dealer doesn't have that specific combo in stock. Read below for Audi's announcement of this sci-fi gadget that the company claims is on the way. Audi VR experience: the dealership in a briefcase Innovative virtual reality headset extends advisory service at Audi dealers Sales chief Luca de Meo: "Further proof of Audi's pioneering role in sphere of digitization" First Audi dealerships to introduce new sales tool by end of 2015 Audi is taking the next big step in integrating digital technologies into automotive retail: The Audi VR experience gives customers the opportunity to configure their preferred car at the dealership through virtual reality headsets and experience it in a unprecedentedly realistic way. The headset showcases the entire model portfolio of the four rings, including all possible equipment combinations. Audi has become the first automotive manufacturer to develop a dedicated retail software solution for virtual reality headsets.

Volkswagen might cut 40 models across brands to save cash

Volkswagen once set out to pass Toyota and General Motors and become the largest automaker in the world. Following months of fallout from the diesel emissions scandal, the manufacturer is rumored to be dropping around 40 models from its company-wide lineup. According to German business and finance publication Handelsblatt, the Volkswagen Group is looking to slim down and remove a number of low-volume vehicles from various lineups. The company currently sells around 340 models across brands that include Audi, Lamborghini, and Bentley. Volkswagen is refusing to comment, but Handelsblatt claims to have sources within the company. Last week, Volkswagen Group CEO Matthias Muller announced a new strategy for the company that includes a major focus on electric vehicles and new technology services. During his announcement, Muller said the company would be cutting a number of models, but at the time no numbers, models, or brands were discussed. Despite comments to the contrary, rumors have persisted since late last year that Volkswagen was looking to sell commercial truck and bus manufacturer MAN. Volkswagen owns truck and bus manufacturer Scania, so even if it dropped MAN, the company would still have a foothold within the bus and truck market. There is also talk of the company selling Italian motorcycle manufacturer Ducati, which Volkswagen acquired via Audi in 2012. The company's image has taken a huge hit in the wake of the diesel scandal. Volkswagen has set aside cash in order to pay fines and may be looking to sell these several subsidiaries and cut low-volume models in order offset the costs. Despite the scandal, the company led worldwide sales in the first quarter of 2016. The same was true in 2015, but sales tanked at the end of the year following the diesel revelations. Related Video: Rumormill Audi Bentley Volkswagen Ducati