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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.

Former Audi chief designer Wolfgang Egger leaves Italdesign

The latest word from the international community of automotive designers has it that Wolfgang Egger is leaving Italdesign, but just where the accomplished designer will land next and who will take his place remain big question marks. Egger is a designer who has bounced back and forth between Italy and Germany over the course of his career. He was born in Germany but studied in Milan. He began his career at Alfa Romeo in 1989 and was named its chief designer by 1993 before being head-hunted by the Volkswagen Group in 1998 to head up the design department at Seat. A few years later he went returned to Italy to run the Lancia design department, and was subsequently renamed to the same post at Alfa Romeo. In 2007 he went back to his native Germany to head up the Audi design office, over which he assumed complete responsibility by 2012, but left Audi in 2013 to run Italdesign. For those unfamiliar, Italdesign is the studio founded by Giorgetto Giugiaro (pictured at left next to Egger) back in 1968 but which, along with many other Italian design houses, fell on hard times in recent years. The Volkswagen Group swooped in to rescue the troubled studio in 2010, turning it into something of an in-house advanced design department to provide an alternative perspective on the direction in which the group and its various brands could take their respective designs moving forward. With Egger now leaving its helm, Italdesign and its German parent company will need to find his replacement, and we're sure they'll announce one in due course. The bigger question on our minds, however, is where Egger himself will head next. Given the path his career has taken to date, we wouldn't be surprised to see him land elsewhere in the Volkswagen Group or find a new role in the expanding Fiat Chrysler Automobiles empire. Then again, Egger could find it time to open an entirely new chapter. Watch this space. News Source: Car Design NewsImage Credit: Newspress Design/Style Hirings/Firings/Layoffs Audi Volkswagen designer italdesign giugiaro wolfgang egger

Top 10 small cars with the longest total driving range

Editor's Note: Since this article was originally posted in the spring of 2015, much has changed in the automotive landscape, especially among those shopping for small car economy. With thanks to Volkswagen for their blatant cheating – and subsequent cover-up – on diesel emissions, the largest player in the diesel passenger car segment isn't playing – they're paying; billions are going for both car buybacks and federally-imposed penalties. And for a few VW execs there exists the very real possibility of jail. With the absence of a big player and the abrupt entrance – via Chevy's new Bolt – of an affordable EV with 200+ miles of range, we've limited the diesel listings to Jaguar's new XE. And for those wanting an updated look at efficiency and range, Autoblog has it – or the EPA has it. Long before electric vehicles were part of the mainstream conversation, car lovers and skinflints alike would boast about the total range of their vehicles. There's something about getting farther down the road on one tank of gas that inflames the competitive spirit, almost as much as horsepower output or top speed. Of course, the vehicles with the very best range on today's market are almost all big trucks and SUVs; virtually all have the ability to carry massive reserves of fuel. Top up a standard Chevy Suburban and you can expect to travel almost 700 miles (you'll need to stop before the Suburban stops...), while a diesel-fed Jeep Grand Cherokee manages almost as many. But what about vehicles that are smaller? The EPA has, essentially, three classifications for 'small' vehicles: Minicompact, Subcompact and Compact. All three are measured based on interior volume, meaning that some cars with rather large exterior dimensions and engines slot in next to traditional small cars. But even though impressive GT coupes from Porsche, Bentley and Mercedes-Benz may have much larger gas tanks to feed their powerful engines, that capacity is offset by higher rates of consumption... in most cases. We used the EPA's Fuel Economy Guide for model year 2017 cars as a start, calculating the official highway miles per gallon rating with each vehicle's tank capacity. The resulting numbers aren't necessarily real world, but they do offer a spectrum for total theoretical range. The eventual top ten surprised me on a few occasions, and comprised quite a varied list of vehicles. 10.