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Audi exec denies plans for turbo R8

Sometimes smoke doesn't lead to fire. Rumors indicated Audi might drop a turbocharged engine into the latest R8, but now a top executive is throwing a bucket of cold water onto the burning speculation. "The performance potential of this current engine means we don't need to even look at turbocharging at this point," Jurgen Konigstedt, Audi development boss for V6, V8, and V10 engines, said to CarAdvice. He also said sticking with natural aspiration offered a better sound and sharper throttle response than going with forced induction. "There is less emotion with a turbocharged engine," he said. Konigstedt admitted there was a serious discussion about turbocharging the R8. The argument just didn't win out. "If we feel that people absolutely want a turbocharged engine, then we will have to consider it," he said to CarAdvice. Audi just launched a new generation of the supercar. The 2017 R8's 5.2-liter V10 will be available in two tunes: with 540 horsepower in the standard coupe or 610 hp in the Plus. Rumors have persisted about a smaller, forced induction powerplant at the bottom of the range. Some reports suggested a twin-turbo V6 behind the driver, but others said the electrically supercharged 2.5-liter inline five was a candidate. The reason for the entry-level addition was tied to lowering the taxes on the R8 in markets like China. Related Video:

Mercedes chief invites Audi, BMW to compete in F1

Mercedes-Benz didn't just win the Formula One World Championship in 2014 – it positively dominated it. The team won all but three of the grands prix this season, scoring a one-two finish at more than half of them and landing at least one car on the podium at every race without exception. It goes without saying, then, that the German automaker thrives on competition, but now it's welcoming even more. Speaking with Germany's Sport Bild at its homecoming celebration in Stuttgart, Daimler chief Dieter Zetsche welcomed Mercedes' biggest rivals Audi and BMW to join it on the F1 grid. Noting that the three German brands share some 80 percent of the market for luxury automobiles, Zetsche said that F1 would make a natural arena of competition for Mercedes, Audi and BMW to fight for top bragging rights. The three currently compete against each other in front of home audiences in the DTM touring car series – effectively Germany's equivalent to NASCAR – but of the ten races held this year, the majority were in Germany itself, and all of them took place in Europe. BMW last competed in F1 when it bought the Sauber team in 2006, but withdrew from the series in 2009. Despite its progenitor Auto Union having fielded the famous Silver Arrows in pre-war grand prix racing, Audi has never been a player in modern F1 racing, though recent rumors have linked it to a potential foray – spurred by the arrival of sister-company Porsche on its home turf at Le Mans, the departure of several of its key endurance drivers and the hiring of former Scuderia Ferrari chief Stefano Domenicali. Porsche had similarly considered an F1 program before getting the go-ahead to compete with Audi at Le Mans. As for the prospect of Mercedes competing in other international racing series, Zetsche added that year-long preparations for 24 hours of racing at Le Mans didn't present a good cost-benefit ratio in his estimation, but that Formula E (where Audi currently supports a quasi-works entry) would be worth a closer look.

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.