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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.

A diesel V8 is the perfect engine for the Bentley Bentayga

Endless, effortless torque is something that's so often taken for granted. Sure, horsepower figures make all the headlines, but the sensation that comes with immediate and readily available thrust is something that can't be overstated, especially in luxury vehicles. High-strung, high-horsepower engines are great in certain applications, but Bentley owners don't want to work for the power, they just expect it to be there. That's why the 4.0-liter diesel V8 from the Audi SQ7 and its 664 lb-ft of torque make perfect sense for the new Bentley Bentayga. We've known for a while that Bentley is planning a diesel variant of the Bentayga, but it wasn't clear from where the engine was being sourced. According to Telegraaf in Holland, Bentley is pulling the diesel from the heart of its sibling Audi, and it won't be an effort to improve fuel efficiency. The all engine features two exhaust-driven turbos plus a 48-volt compressor that effectively cuts lag to nothing and propels the SQ7 TDI to 62 mph in 4.8 seconds. Expect a similar number in the Bentley. This engine is exactly what the Bentayga needs. There is nothing wrong with the W12 in the standard model, and you could argue a 12-cylinder engine is a better fit in a Bentley. But that's just because W12 sounds better than diesel. While the gasoline engine may more powerful and therefore make the vehicle quicker (leading to that " fastest SUV" claim Bentley loves), no owner will actually be racing their Bentayga to its theoretical top speed of 187 mph. They will be racing away from stoplights, though, in an effort to leave more plebeian cars and SUVs behind. All that low-end grunt is what those owners really want. It's unclear if Bentley will bring the Bentayga diesel to the United States, and given the current state of diesel here, the proposition seems unlikely. Expect an official debut at the Paris motor show in October. Related Video: News Source: Telegraaf Rumormill Bentley SUV Diesel Vehicles Luxury bentley bentayga audi sq7

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.