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Audi and Mercedes both outsell BMW in January

There won't be any celebrations in Munich this month, as BMW was outsold by arch-nemeses Audi and Mercedes-Benz. The Bavarian company finished behind Audi in January, which took the top spot for the first time since June of last year, Bloomberg reports. Ingolstadt rode high on a 10-percent bump in sales, while Mercedes saw a larger 14 percent increase. BMW, meanwhile, only saw a modest 6.3-percent sales increase last month, thanks in large part to its struggles in China. The company's sales there increased at about half the rate of its chief competitors, with a 7.9-percent jump to Mercedes and Audi's roughly 15-percent increases. Perhaps more worrying for BMW, though, is that this could become something of a trend for the company. According to Bloomberg, issues with Chinese dealers who cancelled orders over sales targets and bonuses combined with what the publication calls aging models, could spell bad news for the German marque. "This looks like a pretty significant decline in growth compared to Mercedes and Audi," Bankhaus Metzler analyst Juergen Pieper told Bloomberg. "I think this will continue during the next few months." News Source: BloombergImage Credit: Matthias Schrader / AP Earnings/Financials Audi BMW Mercedes-Benz

Audi A3 Cabriolet leaked ahead of Frankfurt

Leaked images of the new Audi A3 Cabriolet have emerged ahead of the compact droptop's debut at next week's Frankfurt Motor Show. Audi has sold a convertible A3 in Europe since 2008, although that car has never made it to the US market. Still, with Audi already bringing an A3 and S3 sedan across the pond, there's hope for this small convertible to arrive here.
The looks of the A3 Cabrio aren't a huge departure from the A3 sedan, besides the obvious deletion of rear doors. We can't tell from the images shown, but considering Audi still hasn't brought a folding hardtop to market, we don't imagine it'll start with an entry level model like the A3. Expect a fast-folding canvas roof, much like the A5 Cabriolet.
From the leaked images, we can see TFSI and Quattro badges on this A3. It seems natural that the Cabrio will sport the same range of four-cylinder engines as the sedan - a 2.0-liter TDI, a 1.4-liter turbo and a 2.0-liter turbo. Of course, we'll have much more on the new A3 Cabrio when it makes its debut in Frankfurt.

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.