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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.

Lamborghini agrees to produce Urus in Italy

The Lamborghini Urus is apparently on the way, and it looks like it will be built in Italy. The news comes from Bloomberg, which claims Lambo CEO Stephan Winkelmann and Audi CEO Rupert Stadler will be joined by Italian Prime Minister Matteo Renzi on Wednesday to announce a series of tax breaks to bring SUV production to Italy. The report cites multiple "people familiar with the matter." The details of the deal include up to 500 new jobs in exchange for $87 million in tax breaks along with "other benefits," according to Bloomberg. Just over a year ago, it was looking like Urus production was headed for Slovakia, where it'd be built alongside its MLB platform-mates, the Audi Q7, Volkswagen Touareg, and Porsche Cayenne. News of Italy's bid surfaced this spring. We'll be sure to keep an eye out for any official news as it becomes available. Related Video:

Lamborghini Urus to get twin-turbo V8

The Lamborghini Urus won't use one of the Italian supercar brand's familiar V10 or V12 engines upon its arrival around 2018, but will instead pack a Lambo-exclusive twin-turbo 4.0-liter V8. Company boss Stephan Winkelmann and research chief Maurizio Reggiani confirmed the powerplant selection to Autocar, which verified earlier rumors. The choice of turbocharging rather than the brand's usual naturally aspirated mills comes returns lower carbon dioxide emissions and a greater breadth of torque from the powerband. Even if Urus owners never take the CUV off-road, Lamborghini's engineers want it to be possible. They feel that significant grunt at low revs is necessary for the vehicle to excel in the dirt, and the company only plans to offer the Urus with all-wheel drive. Winkelmann also promises the model to live up to the automaker's huge performance reputation. "This engine is not used by anybody else, only for Lamborghini. To be the most powerful in the class it must have something that is dedicated to our brand," he said to Autocar. For buyers looking for even more exclusivity from their Lamborghini crossover, the company could offer multiple variations of the Urus after the initial launch. Winkelmann re-confirmed to Autocar that both a plug-in hybrid version and high-performance Superveloce are under consideration; there also could be a luxury-focused edition. The company hasn't signed off on any of these yet, though. Lamborghini will build the Urus in a new factory near its headquarters in Sant'Agata Bolognese, and the brand will hope to deliver around 3,000 of them annually. Expect the final model to look like an evolved version of the earlier concept. Autocar claims prices for the UK market similar to the Aventador, which starts at around $400,000 in the US. Related Video: