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German carmakers recall 630,000 diesel vehicles in Europe

Mercedes, Opel, Porsche, and Volkswagen will recall over 630,000 cars in Europe, according to reports Friday. No diesel car has been able to get under the legal emissions limit in real-world driving, according to a German government investigation. While only Volkswagen Group has been using a specific "defeat device", other carmakers have been playing with their exhaust gas recirculation (EGR) systems. Depending of the manufacturer, the systems have been cut off at a certain temperature. In a specific test cycle the systems operate to fulfill the legal requirements, but in everyday use the limits are exceeded. According to the magazine Der Spiegel, the supplier Bosch is behind this programming and has provided it to all German automakers. The mentioned carmakers have announced recalls, but many other manufacturers are also mentioned by name in the report, including Alfa Romeo, Chevrolet, Dacia, Fiat, Ford, Hyundai, Jaguar, Jeep, Land Rover, Nissan, Renault, and Suzuki. PSA Group, which produces Peugeot, Citroen, and DS cars, declared yesterday that its offices were raided following an emissions investigation. Related Video: News Source: AutocarImage Credit: Getty Images Government/Legal Green Recalls Mercedes-Benz Porsche Volkswagen Opel Emissions Diesel Vehicles diesel emissions investigation

Our hats are off to Porsche's 2014 911 Turbo Cabriolets

Porsche has just debuted its two latest decapitated rocket sleds today at the LA Auto Show, the new 911 Turbo Cabriolet and Turbo S Cabriolet, which share their coupe counterparts' 520-horsepower and 560-hp 3.8-liter twin-turbocharged flat-six engines. That kind of power ought separate a lot of hats (and toupees!) from heads.
The rear-engined Porsches put their power down through all four wheels, which allows them to launch from 0-60 in 3.3 seconds or less (the Turbo S Cab takes just 3.1 seconds), and both of them top out at 195 mph.
The 911 Turbo Cabriolet starts at $160,700, while the Turbo S Cabriolet can be had for a grand total of $193,900 (plus $950 for destination). Is the S model's 40 extra horsepower worth $33,200? We're not so sure, but we imagine Porsche won't have any trouble selling it.

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.