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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.

VW Group shareholders demand Bentley return to profit

The Volkswagen Group's main shareholders are giving British ultraluxury division Bentley an ultimatum to turn around its finances and start earning a profit. The Piech and Porsche families did not say what would happen if the brand fails to return to the black, but they said it should happen within two years. "The important thing is for every (VW Group) brand to generate a reasonable contribution again," Wolfgang Porsche told the subscription-only Frankfurter Allgemeine Zeitung, as relayed by Automotive News. "That is not currently the case at Bentley, and we are not satisfied." Volkswagen Group has not yet issued its report for full-year 2018, but Bentley had lost the equivalent of $157 million through the first nine months on an 11 percent decline in sales. In 2017, Bentley sold 10,566 vehicles globally, with revenue down 9.2 percent from 2016. VW Group apparently cites the slow rollout of the Continental GT and the British pound's lower value amid Brexit talks, which makes the many parts it sources from continental Europe more expensive, as among the reasons. A German study last summer claimed that Bentley lost a little more than $19,000 on each car. Adrian Hallmark started as CEO in February 2018 after heading global brand strategy for Jaguar. Bentley in 2018 released the all-new 2019 Continental GT after a nine-month delay, and it revealed the GTC convertible version in Los Angeles. Hallmark has said 2019 "is a conversion year to a better business model" after a year plagued by problems that also included European WLTP certification. He announced last year the luxury brand would no longer build new sports cars, though the brand says it's still committed to the idea of the two-door GT. Bentley has also said it wants electrified versions of all its models by 2025, which will be an expensive proposition and will likely including plug-in hybrid versions of current models.

Rhys Millen will drive a Bentley Bentayga at Pikes Peak

Despite Bentley positioning its Bentayga SUV as a luxury vehicle, Bentley doesn't want us to forget that it's also a storied motorsport brand. Even the Bentayga can be used for record hunting, as Bentley is eager to show. It has hired two-time Pikes Peak hill climb winner Rhys Millen to take a Bentayga to the mountaintop. With the production SUV record in its sights, Bentley's Motorsport wing in Crewe has prepared a Bentayga for the attempt (which will be used as a benchmark for the Lamborghini Urus). The vehicle has been kept as stock as possible, as per the rules, and for safety reasons it features a full roll cage, a fire suppression system, racing seats and a harness. Still, Bentley has also enlisted exhaust crafters Akrapovic to give it a custom setup; Akrapovic has also done the exhaust for the Continental GT3-R. But the air suspension with its electric anti-roll control is kept stock, and the Pirelli rubber is also off-the-shelf stuff. The W12 engine's 600hp/664 lb-ft power figures also match the unmodified versions. We reported on Bentley's inclusion at the June 24 event earlier, but at that point the driver had not yet been announced. Millen, 45, from New Zealand, is reportedly the second-most-prolific Pikes Peak competitor in the world. The current production SUV record stands at 12:35.61, set by Paul Dallenbach with a Range Rover Sport in 2013. The Pikes Peak Bentayga's exterior has been finished with an unmistakable Radium Satin hue, but other than that and the carbon fiber body kit, it appears more like an everyday, run-of-the-mill Bentayga, not a wild Pikes Peak racer with a bookcase for a rear wing. Related Video: