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VW Group plan puts Porsche in charge of a 'super-premium' division

An Automobile report looks into what's happening on the organizational and technical sides of the Volkswagen Group, and what those changes could mean for the premium brands. The wide-angle view is that Porsche appears to have been anointed to "coordinate the future activities" at Audi, Bentley, Bugatti and Lamborghini. Audi would cede Lamborghini guardianship to Stuttgart, and Ducati — via a new concern called Ducati Enterprises — would become the shepherd for VW's other Italian investments. Executives target Jan. 1, 2019, to complete the reshuffle. VW wants to save a boodle by tying up four of its five top-tier brands, and putting the one with the highest ROI in charge. Porsche, within its own house, wants to reduce expenditures by $2.3 billion per year over for four years, the savings already earmarked for improving internal processes like R&D and production. Having Porsche share those gains as well as lead development of platforms, components and future-tech strategies for the sister sports car brands could benefit everyone. In the near-term, the brands have their own plans: Bugatti CEO Stephan Winkelmann is said to want a Chiron Superleggera, a roofless and "completely reskinned" Chiron Aperta, and a track-only Chiron SS. The Superleggera could take the Chiron Sport's and Divo's Jenny Craig routines even further. The Aperta seems a natural successor to the Veyron Grand Sport, a natural evolution of the recently introduced Sky View roof, and a reskin might include numerous Divo cues. It's also said Bugatti's considering "an all-electric high-end model" in conjunction with Porsche, Rimac, and Dallara, but name one supercar or hypercar manufacturer that isn't considering a lightning-fast EV. Lamborghini, deep into work on follow-ups for the Huracan and Aventador, might get a bit of a bump with the new plan. The carbon "monofuselage" for the next V12 flagship is said to be too far developed and too complex to scrap. It puts two electric motors on the front axle, batteries in the middle, and a naturally aspirated V12 with around 770 horsepower plus another e-motor with 402 horsepower in back. The Huracan is said to get a version of the same carbon architecture at the moment, but the corporate reorganization might press pause on it. Automobile says options include continuing the Huracan/ Audi R8 twinning, but that depends on Audi saying "Ja" to a third-gen R8 with Lamborghini bones.

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.

Watch a Lamborghini change color thanks to thermochromic paint

German artist Rene Turrek went from being a punk kid using spray paint to illegally tag walls to a global celebrity artist working with clients such as Mattel and Nikon. He may have become a little more corporate, but he still finds a way to do some playful work for himself. Recently he has turned his attention to creating incredible paint jobs on some pretty cool cars. Turrek released this video last week of his Lamborghini Gallardo, which at first just seems like a pretty purplish color. But a little bit of water splashed on the hood reveals an awesome tribute to that most awesome of crimefighters, Captain America. Turrek isn't some sort of nerdy witch. The car is coated in thermochromic paint, which reacts to temperature changes. When not activated, the Lambo is disguised as a mild-mannered purple supercar. A cup or two of warm water thrown on the special paint and it becomes translucent, revealing the car's true colors. After a few moments the paint becomes opaque again. Turrek calls the work 'The First Avenger.' We've seen a similar use of the paint on a R33 Nissan Skyline, which allowed the car to turn from orange to black and back to orange again. This isn't the first superhero supercar Turrek has produced. He also created a BMX X6 that looked blue under normal conditions, but revealed The Incredible Hulk on the hood when hit with warm water. Unfortunately the disappearing effect fades once the paint is exposed to too much sunlight, so to keep the paint job safe these cool cars would have to be kept in the dark. And at $400 a pint, Thermochromic paint can cost thousands of dollars to coat a car. It may not be the most cost-effective way to enhance your ride, but certainly one of the coolest. Related: Video: