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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:

Weekly Recap: Geneva's splendor reflects growing demand for ultra-luxury cars

Geneva is one of the most glittering auto shows in the world, but the list of high-powered and bespoke luxury cars was decadent this year even by the rich standards of the Swiss exhibition. It's great for enthusiasts to revel in the flame-throwing Aston Martin Vulcan, the racing-inspired elegance of the Bentley EXP 10 Speed 6 concept and the insane performance of the Lamborghini Aventador LP 750-4 Superveloce, but there's a reason for all of this opulence: the luxury market is big business. And it's growing. IHS Automotive forecasts that so-called ultra-premium sales will nearly triple this decade from 123,000 to 353,000 units around the world. The estimate includes brands like Aston Martin, Bentley, Ferrari and Rolls-Royce, but doesn't count BMW, Mercedes and Audi, which offer less expensive models in addition to their high-end flagships. Though IHS includes Porsche and its relatively large volume in the study, the ultra-premium segment is still set grow at about the same rate, even without the German automaker's figures. So what is propelling all of this growth in the most expensive segment of the auto industry? Put simply, there's more rich people. IHS Automotive principal analyst Tim Urquhart pointed to economic expansion in China, market recovery in the United States and a surge in the lucrative technology sector as contributing factors. This dovetails with a research report by UK-based Oxfam, an international relief organization, which found the world's richest one-percent owned 48 percent of global wealth in 2014, and it's expected to increase to more than 50 percent by 2016. View 17 Photos Carmakers are moving quickly to capitalize with new products, expanding their portfolios with low-volume speedsters like the 800-hp V12 Vulcan at Geneva, and plans to enter new segments, like Rolls-Royce's strategy to make an SUV. "Ultra-premium carmakers are looking to explore ways of growing their product offerings, and thus their bottom lines, in this most potentially profitable of segments," Urquhart wrote in a report on the Geneva show. In a nutshell, there are more choices for people with more money. It's a good time to have expensive taste. Other News & Notes 2016 Mazda MX-5 Miata production launches It won't be long now. The 2016 Mazda MX-5 Miata arrives later this year, and it's officially in production. Mazda announced this week that the roadster began rolling off the assembly line at its Ujina factory in Hiroshima, Japan.

2015 Lamborghini Huracan LP 620-2 Super Trofeo [w/video]

Pull a run-of-the-mill Lamborghini Huracan LP 610-4 off the Sant'Agata Bolognese assembly line, and you'll get a fearsome piece of machinery that can hit 60 miles per hour in as little as 2.5 seconds and reach a terminal velocity in excess of 200 mph. The stats are stunning, but the boys at Lamborghini want more – not just numerically, but more in the greater glory of an all-encompassing, brand-aggrandizing, Ferrari kind of way. Why compare the Raging Bull with the Prancing Horse in particular? Surely, any self-respecting gearhead knows that the two brands exude subtly different swaggers. But the gap goes well beyond the superficial: while Ferrari (not to mention competitors like McLaren and Porsche) has nurtured an enviable racing history from LeMans to Monaco, Lamborghini's history on the track is a bit scarcer. The Volkswagen Group recently thrust Bentley back into competition to reinvigorate the brand's past glories, and the next VW brand to win the racing lottery is Lamborghini. Behold: the Lamborghini Huracan LP 620-2 Super Trofeo. Born To Race While Lamborghini claims a long history of wedge-shaped exotica, the Huracan was the first production car in the brand's half-century history to be engineered from scratch with the racetrack in mind. As such, the street car's screaming, naturally-aspirated V10 and 3,135-pound curb weight are mere starting points for Dallara Automobili, the firm tasked with developing the racecar in conjunction with Lamborghini. For starters, the standard Huracan is alleviated of many of its pedestrian trappings like airbags, sound systems, and swanky power-operated leather seats. By jettisoning the unnecessary, the Super Trofeo manages to slim down nearly 330 pounds, to around 2,800 pounds. Don't let the mere 10 (metric) horsepower jump fool you: the LP 620-2's Motec engine management system not only adds data acquisition capabilities (which work alongside an eight-setting traction control system and a 12-setting Bosch ABS setup), it completely changes the power delivery characteristics of that 5.2-liter V10. More on that later. A good chunk of that weight loss comes from the removal of the entire front end of the drivetrain, which transforms this Huracan from an all-wheel-drive animal to a rear-drive beast.