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Brand new cars are being sold with defective Takata airbags

If you just bought a 2016 Audi TT, 2017 Audi R8, 2016–17 Mitsubishi i-MiEV, or 2016 Volkswagen CC, we have some unsettling news for you. A report provided to a US Senate committee that oversees the US National Highway Traffic Safety Administration (NHTSA) and reported on by Automotive News claims these vehicles were sold with defective Takata airbags. And it gets worse. Toyota and FCA are called out in the report for continuing to build vehicles that will need to be recalled down the line for the same issue. That's not all. The report also states that of the airbags that have been replaced already in the Takata recall campaign, 2.1 million will need to eventually be replaced again. They don't have the drying agent that prevents the degradation of the ammonium nitrate, which can lead to explosions that can destroy the airbag housing and propel metal fragments at occupants. So these airbags are out there already. We're not done yet. There's also a stockpile of about 580,000 airbags waiting to be installed in cars coming in to have their defective airbags replaced. These 580k airbags also don't have the drying agent. They'll need to be replaced down the road, too. A new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time. If all this has you spinning around in a frustrated, agitated mess, there's a silver lining that is better than it sounds. So take a breath, run your fingers through your hair, and read on. Our best evidence right now demonstrates that defective Takata airbags – those without the drying agent that prevents humidity from degrading the ammonium nitrate propellant – aren't dangerous yet. It takes a long period of time combined with high humidity for them to reach the point where they can rupture their housing and cause serious injury. It's a matter of years, not days. So a new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time – and six years seems to be about as early as the degradation happens in the worst possible scenario. All this is small comfort for the millions of people who just realized their brand-new car has a time bomb installed in the wheel or dashboard, or the owners who waited patiently to have their airbags replaced only to discover that the new airbag is probably defective in the same way (although newer and safer!) as the old one.

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.

Audi doesn't even need December to set new global sales record

In 2011, Audi broke its previous-year global sales total at the end of November. It did it again in 2012. It did the same in 2013, and it's done the same again this year. The brand sold roughly 1.575 million cars last year. As of November 30 this year - its 47th record-breaking month in a row in the US - it had found new owners for 1.591 million cars around the world. Where is the action happening? Everywhere, with double digit growth year-on-year in China (16.4 percent, led by the Q3), the US (15.4 percent, led by the Q5) and Mexico (10.6 percent), and triple-digit growth in Brazil (105.2 percent). Even Europe, still struggling to break free of its retail lassitude, returned a 4.3-percent gain, with the UK and Swedish markets up by more than 20 percent. In November alone, Audi's deliveries increased 10.8 percent compared to last year, and it broke the company record for monthly sales, getting 146,250 units out the door. You can find more numbers and details in the press release below. AUDI AG: new sales record after 11 months - Full year 2013 volume already exceeded in November - Sales chief Luca de Meo: "Strong year-end sprint for Audi" - New-generation Audi A6* launched in the first European markets Ingolstadt, 2014-12-09 - Audi continues to post double digit growth in November too: Deliveries climbed 10.8 percent to a new record breaking figure for a single month of around 146,250 cars. The company once again grew significantly in all regions around the globe. Demand for the four rings rose in the Asia Pacific region in particular with sales up 17.7 percent. Since January, the premium manufacturer has delivered around 1,591,100 cars (+10.1%) to customers, thus topping last year's sales total after just 11 months. In the whole of 2013, the Ingolstadt based company sold around 1.575 million units. "Our performance in November shows that we are keeping up the pace as we sprint towards the year-end," says Luca de Meo, Member of the Board of Management for Sales at AUDI AG. "Our large export markets in particular are driving the growth of the four rings at this time." In China Audi handed over 52,544 vehicles (+18.5%) to their new owners. The Audi Q3* provided a strong boost, with demand for the compact SUV growing by 49.8 percent. Since January, the Ingolstadt-based company has sold a total of 516,356 cars in the Middle Kingdom – and thus more than half a million units for the first time.