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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:

Lamborghini and Bentley may hold off on SUVs so VW can conserve cash

After surveying the European economic scene, Volkswagen may have decided now is not the time to launch utility vehicles with Bentley and Lamborghini badges. Bentley officials say they will continue to push for support for the EXP 9 F and Lamborghini CEO Stephan Winkelman has said planning for the Urus will continue until VW tells it to stop.
That decision could come on November 23, when VW's board will vote on the company's budget for equipment, factories and vehicles. With VW's sales slowing and the Euro economy slumping further, some industry watchers say the company is more likely to build its cash reserves than to introduce super-expensive luxury SUVs or crossovers.
"Such vehicles are anything but obligatory during a crisis," says Frankfurt-based Equinet AG analyst Tim Schuldt in a new Automotive News Europe story. "Delaying their launch would be no drama but help save costs."

Lambo Urus to stay true to concept, but almost didn't happen

Lamborghini has been making noise about adding a third model line for years, and it's finally going to happen now that the Urus concept has been approved for production. It'll likely be a while yet before all the details are sorted out and revealed to the public, but while visiting the factory in Sant'Agata Bolognese, Autoblog was able to glean some intriguing details about the Italian automaker's forthcoming crossover and its path it is taking from concept to production. "It's good to have heritage, but the LM002 is not the reference or the blueprint." - Lamborghini CEO Stephan Winkelmann We first saw the Urus concept back in 2012, and Lamborghini has been lobbying its parent company Volkswagen ever since for the go-ahead to put it into production. Now three years later, it finally has the green light. A company representative told Autoblog the production version looks "very" close to the concept. (No ground-up redesign here, then, like sister-brand Bentley did with its inaugural crossover project.) Speaking with a small group of journalists in Sant'Agata, the company's chief executive Stephan Winkelmann confirmed that "the SUV could be the [company's] first car with a turbo, and it could be the first car with a plug-in, if we have the opportunity to have more than one engine." The Urus (or however it's ultimately labeled for production) will also be decidedly geared towards on-road performance – unlike the Rambo Lambo on display in the museum next door. "It's good to have heritage," said Winkelmann, "but the LM002 is not the reference or the blueprint" for the new model. As to the question of why it has taken three years to get approval, and why it will take another three to put it into production, Winkelmann was frank: "Basically if you look at our numbers, we are a company which is growing at a fast pace, but we are very small," said the affable executive. "We had to find a way to almost double our efforts, because it's not the exchange of a model line, with the Gallardo and Huracan, it's adding a model line. And not out of 20 to come to 21 models, but from two to three is a major effort, and you have to have a rock-solid business case." "Putting 500 more people inside a company which is now at 1,200, you can imagine what it means. Doubling almost the size of the area here where we are sitting today. Investing hundreds and hundreds of millions.