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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.

Gliding on the ice at Bentley's fantasy camp

It was just before 2:00 PM when I landed in Helsinki, bleary-eyed and more than slightly disoriented, after a late-night departure from New York and an early-morning connection in Amsterdam. I was staring at the departures board. There was one more flight to go before I could join Bentley for Power on Ice, its annual ice driving experience in the northerly town of Kuusamo, but there was a problem: There were two HEL-KAO flights on the board, both slated to leave at 4:30, and it was impossible to discern which was Bentley's chartered flight to the alpine ski area. Nonplussed and unable to utter a word in Finnish, I approached a gate agent with rudimentary English to see if she knew which flight was mine. "I'm sorry, sir," she said in an Finnish take on the Omaha dialect, "Your plane does not seem to exist." I winced. Of course it didn't. "My" plane was way out on the tarmac, far away from proletariat jumbo jets, accessible only through a gate that the automaker had staffed and commandeered for the afternoon. It was an auspicious start to three days of attending Bentley's exclusive fantasy camp for its affluent super-fans, which purportedly exists to answer the question: What can you give the Bentley fan who already has everything? For drivers more accustomed to making graceful entries and exits in their posh vehicles, several days of power sliding on a private track more than suffices. You need not be a Bentley owner to participate in the program, but an aficionado of the brand with some cash burning a pretty big hole in the pocket. For the better part of a decade, Bentley has decamped to Kuusamo, the town located just south of the Arctic Circle, to prove the British performance bona-fides of its lineup on 19 square miles of frozen Kuusamojarvi lake, as part of the wintertime Power on Ice event. The program satisfies the need of high-end performance enthusiasts who want something different than arriving at another five-star hotel for another weekend of good eating, drinking, and relaxing. Plenty of brands assert that they have a bespoke answer for discerning customers, but Power on Ice is truly different. You need not be a Bentley owner to participate in the program, but an aficionado of the brand with some cash burning a pretty big hole in the pocket.

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: