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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.

2014-15 Audi SQ5 recalled for steering issue

Audi is recalling 5,625 SQ5 crossovers from model years 2014 and 2015 due to a fault in the electric power-assisted steering system. The affected vehicles were built between May 22, 2013 and April 14, 2015. The vehicles in question may experience power-steering shutdowns in cold conditions. Good thing the US' average July temperature sits in the mid 70s. The actual root of the problem is a fault in the steering motor sensor, according to the bulletin from the National Highway Traffic Safety Administration. While manual steering would still be available, the sudden loss of power could catch drivers off guard, increasing the chances of a crash. Owners of the affected vehicles will be notified by Audi USA, and will need to report into dealers for a software update to the power steering control module. Scroll on down for the official notification from Audi. Report Receipt Date: JUL 20, 2015 NHTSA Campaign Number: 15V452000 Component(s): STEERING Potential Number of Units Affected: 5,625 Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2014-2015 Audi SQ5 vehicles manufactured May 22, 2013, to April 14, 2015. The affected vehicles have an electric power steering assist system that may shut down in cold temperatures due to a steering motor sensor fault. CONSEQUENCE: If the vehicle experiences a loss of power steering assist, extra steering effort will be required at lower speeds, increasing the risk of a vehicle crash. REMEDY: Volkswagen will notify owners, and dealers will update the power steering control module software, free of charge. The recall is expected to begin July 28, 2015. Owners may contact Audi customer service at 1-800-253-2834. Volkswagen's number for this recall is 48M1. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Next Audi Q7 to debut with electric turbocharger?

For years, the concept of an electric turbocharger was essentially a joke sold on eBay to boost power in your slammed Civic, but in the last five years it has moved from an idea on a piece of paper to a feasible reality. Audi has already toyed with a showcase of the cutting-edge tech in road cars with the RS5 TDI concept. Now, reports suggest an electric turbo may make it to the streets as soon as next year in the next-gen Q7 (spy shot pictured above).
"I can confirm we are working on the development of the e-boost definitely," said Ulrich Weiss, Audi's diesel engine boss, to Australia-based Drive. He didn't give an exact timeframe but hinted at sometime next year, possibly in the Q7. He also suggested the chance of an RS-branded diesel model in the vein of the RS5 TDI concept on the horizon, as well.
This tech isn't entirely new for the folks in Ingolstadt. Audi's R18 endurance racer already uses such a system to capture waste heat from the engine, converting it to electric power to further power the hybrid car. The RS5 TDI concept employs a similar idea with a 3.0-liter, twin-turbocharged V6 with an electric supercharger to make up for the turbo lag. It's able to pump out 385 horsepower and 553 pound-feet of torque and allegedly sprint to 62 miles per hour in four seconds.