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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.

2017 Audi A4 First Drive [w/video]

Internally, Audi refers to the A4 lineage with a B designation. Why the discrepancy? The model legacy traces back to the 1972 Audi 80, and the A4 name wasn't adopted until 1996 for the North American market. So the fifth-generation A4 is code-named B9. There is no confusion about what this car means to Audi. In 19 years, the brand has sold more than 12 million A4s around the world, which puts this new generation on the A-list when it comes to brand importance. If you squint, the new car looks like a facelifted version of the last-generation facelift unveiled in 2013. We get the same impression of the new A4 as we do with the third-generation Audi TT: it hasn't been comprehensively reconceived, it's been comprehensively re-detailed. But with a move to the updated VW group platform known as MLB Evo, 90 percent of the components on this car are new. On the outside, those changes are reflected through deeper sculpting on a body that's about the same height as before but 0.5-inches wider, one-inch longer, and with a wheelbase stretched 0.7 inches. The tweaked grille separates reworked Bi-Xenon headlights, which are standard across the lineup now – halogens go bye-bye. LED headlights are optional, as are the matrix units in other markets. Audi claims US-market cars will lose anywhere from 70 to 100 pounds depending on specification. Above those lights is a version of a clamshell hood – its shutline forms the front third of the pronounced shoulder line along the sedan's flanks. Audi designed a new hinge that keeps the hood lined up properly over the life of a car because small misalignments show more easily on the vertical seams. In back there are updated taillights, a standard rearview camera, and a trunk opening that's an even one meter across. In the press presentations, any conversation quickly turns to weight loss and aerodynamic efficiency. The only curb weight we have from Audi so far is for the base sedan, empty and without a driver, with the 1.4 TFSI engine that we don't get, coming in at 2,910 pounds. The current US-spec A4 is listed at 3,583 pounds, and Audi claims US-market cars will lose anywhere from 70 to 100 pounds depending on specification. About 35 pounds of that comes from the chassis, with new forged aluminum links on the suspension, fixed-caliper, four-piston brakes up front, and wheels that are never heavier than 26 pounds. The rest of the weight loss comes from the body, mostly through greater use of aluminum.

Bosch fuel pumps spark recall of 2015 Golf, GTI and Audi A3

A few weeks ago, BMW and Nissan both issued recalls for some of their vehicles to replace Bosch-supplied fuel pumps. The pumps had nickel plating that could flake off and cause a failure. Volkswagen Group is the latest automaker to be affected by the problem and has a campaign for the 2015 Audi A3, VW Golf and GTI. In total, 6,204 units of these models are in need of repair. The problem with the VW Group vehicles is identical to the previous recalls. It's possible for the pump's nickel plating to come off and cause increased friction. Eventually, this can result in the component's failure. According to documents from the National Highway Traffic Safety Administration (as a PDF, here), there are no reports of accidents or injuries from this issue in the VW Group models. Bosch spokesperson Linda Beckmeyer tells Autoblog that these vehicles don't all necessary share an identical fuel pump, but the parts all use the same plating process. The problem also prompted repairs of the 2014 Ford Escape several months ago, she indicated. When asked if the issue could prompt more campaigns, Beckmeyer said that she "can't speak to that" because automakers decide on the recalls. Owners should receive notice of the problem soon, but according to the NHTSA documentation, there currently aren't enough pumps to fix all of these vehicles. "Bosch is working closely with automakers regarding replacement parts," Beckmeyer said. When available, dealers will replace the components free of charge for affected customers. Related Video: RECALL Subject : Improper Plating may cause Fuel Pump to Fail Report Receipt Date: APR 17, 2015 NHTSA Campaign Number: 15V229000 Component(s): FUEL SYSTEM, GASOLINE Potential Number of Units Affected: 6,204 All Products Associated with this Recall Vehicle Make Model Model Year(s) AUDI A3 2015 VOLKSWAGEN GOLF 2015 VOLKSWAGEN GTI 2015 Details Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2015 Volkswagen Golf, GTI, and Audi A3 vehicles. Improper nickel plating of components within the fuel pump may result in the fuel pump failing. CONSEQUENCE: If the fuel pump fails, the vehicle will not start, or if the engine is running, it will stop and the vehicle will stall, increasing the risk of a crash. REMEDY: Volkswagen will notify owners, and dealers will inspect the vehicles and replace any affected fuel pumps, free of charge.