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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.

Evo sets up duel of Porsche 911s

What's better, rear-wheel drive or all-wheel drive? That question has occupied auto enthusiasts for years, and so far, we've not really had a solid answer one way or the other. Evo has opted to take another whack at this tough question by pairing a pair of Porsche 911s against each other for a track battle.
In one corner, we have the two-wheel-drive 911 Carrera S, complete with the lickity-split PDK transmission, a sports suspension and carbon-ceramic brakes. In the other corner, it's the all-wheel-drive 911 Carrera 4S in a much mellower spec, with a seven-speed manual, as well as standard brakes and suspension. While the results seem like they'd be a foregone conclusion, some very British weather is there to act as the great equalizer.
We've got the full video down below. Have a look, and let us know if you agree with Evo's results.

The 2017 Porsche 911 RSR goes mid-engine, purists be damned

Porsche unveiled its World Endurance Championship and IMSA WeatherTech Championship competitor with the 2017 911 RSR. And this 911 is different from the rest, as the 4.0-liter flat-six engine powering this beast is in front of the rear axle, not behind it. That's right, this 24 Hours of Le Mans competitor ditches the iconic rear-engine layout. Porsche isn't talking specifics on how exactly things are arranged back there. The engine is new, now based on the 991 911's block instead of the previous Mezger motor that's been used for years. The transmission design is new as well – it would have to be to accommodate the new location relative to the engine. The racecar has been engineered to meet the LM-GTE class, where it will go up against other mid-engine cars like the Ford GT and Ferrari 488 GTE. Moving the engine to the middle has given Porsche the ability to fit the 911 RSR with massive bits of aero, like the humongous rear diffuser that looks like it would be more at home on a machine of war. The only thing that can compete with the diffuser for size is the top-mounted rear wing, which shares a similar design to the one found on the 919 Hybrid. Going back to the engine, the direct-injected boxer motor, depending on the size of the restrictor, generates as much as 510 horsepower and sends all of its fury to the rear wheels. The engine is paired to a six-speed sequential gearbox, which drivers can employ through paddles on the steering wheel. The new engine doesn't have a lot of weight to push around as the 911 RSR, as required by regulations, weighs 2,740 pounds. Speaking of weight, the engine layout isn't the only change for the 911 RSR. For 2017, the car ditches its steel body for one that's made out of carbon fiber. The body attaches to the chassis via quick-release fasteners, making the vehicle easier to service as exterior elements can be removed with minimal effort. The racecar also gets a radar-based collision system – aptly named the "Collision Avoid System" – which is meant to limit the 911 RSR's encounters with faster LMP prototypes. Only time will tell if the new layout and aerodynamic components help the 911 RSR beat its competition. But there will be plenty of opportunities to see the racecar in action as Porsche plans to run the 911 RSR in 19 races during the 2017 season, the first of which will take place at the IMSA opener on January 28th at Daytona, where the racecar will make its track day debut.