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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.

A diesel V8 is the perfect engine for the Bentley Bentayga

Endless, effortless torque is something that's so often taken for granted. Sure, horsepower figures make all the headlines, but the sensation that comes with immediate and readily available thrust is something that can't be overstated, especially in luxury vehicles. High-strung, high-horsepower engines are great in certain applications, but Bentley owners don't want to work for the power, they just expect it to be there. That's why the 4.0-liter diesel V8 from the Audi SQ7 and its 664 lb-ft of torque make perfect sense for the new Bentley Bentayga. We've known for a while that Bentley is planning a diesel variant of the Bentayga, but it wasn't clear from where the engine was being sourced. According to Telegraaf in Holland, Bentley is pulling the diesel from the heart of its sibling Audi, and it won't be an effort to improve fuel efficiency. The all engine features two exhaust-driven turbos plus a 48-volt compressor that effectively cuts lag to nothing and propels the SQ7 TDI to 62 mph in 4.8 seconds. Expect a similar number in the Bentley. This engine is exactly what the Bentayga needs. There is nothing wrong with the W12 in the standard model, and you could argue a 12-cylinder engine is a better fit in a Bentley. But that's just because W12 sounds better than diesel. While the gasoline engine may more powerful and therefore make the vehicle quicker (leading to that " fastest SUV" claim Bentley loves), no owner will actually be racing their Bentayga to its theoretical top speed of 187 mph. They will be racing away from stoplights, though, in an effort to leave more plebeian cars and SUVs behind. All that low-end grunt is what those owners really want. It's unclear if Bentley will bring the Bentayga diesel to the United States, and given the current state of diesel here, the proposition seems unlikely. Expect an official debut at the Paris motor show in October. Related Video: News Source: Telegraaf Rumormill Bentley SUV Diesel Vehicles Luxury bentley bentayga audi sq7

Bentley, Lamborghini consider foreign production [w/poll]

Would a Bentley be a Bentley if it weren't manufactured in Great Britain? Would a Lamborghini be a Lamborghini if it were built outside of Italy? It may be hard to say either way, but we might find out sooner than later, because the latest word coming in from Europe is that the Volkswagen Group is considering expanding production for both these upscale brands outside their traditional homes.
According to the Autovisie section of Dutch newspaper De Telegraaf, the issue for both automakers comes down to their ambitious expansion programs. Both Bentley and Lamborghini plan to launch new SUVs - the former's being well under way, the latter's still awaiting approval - that would expand their annual production considerably: by 50 percent in Bentley's case, and by as much as 100 percent in Lamborghini's.
For now, both marques intend to handle the added production with additional assembly lines at their current facilities in Crewe and Sant'Agata Bolognese, respectively. But both could soon outgrow their relatively small plants - and with the Volkswagen Group operating countless factories across Europe and around the world, it wouldn't be hard to see these manufacturers shifting excess production outside of their home countries.