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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.

The next Bentley Mulsanne could go all-electric

How many Bentleys are sold in China, anyway?* That's a question worth asking after the company said it will consider switching the powertrain of its uber-luxe sedan Mulsanne to all-electric from its current gas-guzzling V8 setup. Such a switch would be in the name of adhering to stricter greenhouse-gas emissions limits, especially in countries like China. Bentley executive Hans Holzgartner told Autocar that the company may soon have problems selling a V8-powered Mulsanne in China because government regulators are attempting to push for more zero-emissions vehicles to combat smog problems in the country's largest cities. Oddly, Holzgartner said an electric powertrain is "better suited" to heavier luxury cars than lighter sports cars because of an electric motor's smooth, instant delivery of torque. With the Mulsanne already priced north of $300,000 in the US, passing on the costs of such a huge battery pack will probably be less of an issue than for more typically-priced models. Of course, there would be a ton (almost literally) of battery cells involved. The Mulsanne tips the scales at almost 6,000 pounds, or almost twice the weight of a Nissan Leaf and about 25 percent more than a Tesla Model S. For those curious how the one-percenters live, take a look at Autoblog's recent drive of a Mulsanne Speed. Since this is just being studied at this point, it's possible the next Mulsanne could get a battery-electric or plug-in hybrid version for certain markets, while others would retain a gas engine or offer a choice. Assuming it keeps the gas option, the next Mulsanne will reportedly to switch to a twelve-cylinder engine, likely a version of the Volkswagen Group's W12. As for green cred, let's just say the Mulsanne's couldn't be much worse. Earlier this year, the Mulsanne showed up on the American Council for an Energy-Efficient Economy's (ACEEE) annual list of "meanest" vehicles when it came to environmental sustainability. The Bentley was rated the fourth-meanest vehicle sold in the US, following the Mercedes-Benz G65 AMG, the Chevrolet G2500 Express/GMC Savana, and the Mercedes-Benz G63 AMG. The EPA rates the Mulsanne's fuel efficiency at an absolutely gasoline-swilling 13 miles per gallon combined. * If you're curious, Bentley sold 1,615 cars in China last year. Related Video: Featured Gallery 2017 Bentley Mulsanne: First Drive View 24 Photos News Source: Autocar via Hybrid CarsImage Credit: Drew Phillips Green Bentley Electric

Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.