00 Bentley Arnage Red Label 6.7l V8 Navigation Power-heated-st Roof 18in-chrome on 2040-cars

Auto blog

Audi CEO says brand's EVs are almost as profitable as its other cars

After, oh, a hundred years or so of building vehicles primarily powered by internal combustion engines, automakers around the world have been and still are pumping billions of dollars into the development of electric vehicle technology. Everything from platforms and batteries to motors and the software to control it all requires untold hours of development, and that takes time and money. Fortunately, it's not going to take long for that massive investment to start paying off, at least according to Audi CEO Markus Duesmann, who told Reuters in an interview that "The point where we earn as much money with electric cars as with combustion engine cars is now, or ... next year, 2023. They are very even now, the prices." As a brand, Audi contributed more than a quarter of overall profit for the massive Volkswagen Group, which has such powerhouse brands as Volkswagen and Porsche among others. Under the Audi umbrella are Lamborghini, Bentley and Ducati, and it seems those high-end branches aren't going anywhere, at least for now. "These brands ... are very valuable very profitable brands, where we can even expand the synergy level in the future," Duesmann said in the interview. "There are no plans whatsoever to get rid of them." Despite the overall profitability of the brand, the ongoing global chip crisis is causing headaches. "We had a very strong first half in 2021. We do expect a much weaker second half," said Duesmann, who added, "We really have trouble." In fact, so serious is the trouble that the brand is forced into "a day-to-day troubleshooting process" to limit the chip-shortage damage. The good news for the automaker is that Audi has been able to boost its profit margin from 8% prior to the pandemic in 2019 to 10.7% in the first half of 2021. The bad news is that various chip shortages aren't expected to get a whole lot better over the rest of the year. Related video:

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Bentley to unveil zero-emissions EXP 100 GT on July 10

Some people take part in excessive celebrations with a birthday week. Bentley went the extra mile and has been celebrating a full all-out birthday year, with a variety of special-edition models and events. The British manufacturer has been milking its centenary leading up to July 10, 2019, when it will unveil the EXP 100 GT, a zero-emissions autonomous car that Bentley bills as "the future of grand touring."  During the past year, Bentley has released Centenary Specifications for all of its models, a $250,000 book, the Continental GT Convertible No. 1 Edition by Mulliner, a Bentley Continental GT No. 9 Edition, and a Mulsanne W.O. Edition, all in honor of 100 years of the company. These special products have created a build-up toward one of Bentley's biggest launches ever in the EXP 100 GT.  The EXP 100 GT is expected to be Bentley's first electric car, but the EXP nomenclature indicates it will only be a concept, for now. It will also be autonomous, as the ultimate level of grand touring is supposedly having the choice to drive or be driven.  Bentley says it will be "a physical embodiment of the future brand," and will "set the new benchmark for luxury craftsmanship." This will be accomplished with "a fascinating array of materials," all of which are handcrafted to Bentley's over-the-top standards.  The unveiling event will be livestreamed on BentleyMedia.com, or enthusiasts can register for the event on a microsite called Extraordinary Journeys. The sheet is expected to be pulled at 11 a.m. EDT Wednesday, July 10.