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Five reasons to love, or hate, the culture of German cars

A few months back, we took a 500-foot view of the culture of American cars, dissecting prides and prejudices on our way to the conclusion that automotive allegiances can be simultaneously embraced and derided. We had so much fun with the narrative that we decided to do it again, this time taking a look at Germany and its world-renowned lineup of automakers, including the likes of Audi, BMW, Mercedes-Benz, Porsche and Volkswagen, among others. Join us below as we discuss the points and counterpoints that make or have made the German auto industry what it is today. And remember, Germany did pretty much invent the automobile, after all... The V12 Engine If America is known for the proliferation of the V8 engine, an argument could be made that Germany owns the V12. Yes, of course, other companies have created V12 engines – Ferrari, Jaguar and Lamborghini immediately come to mind – but the big 12-cylinder powerplants from BMW and Mercedes-Benz, in particular, have proven to be some of the most effortless, luxurious and downright over-built engines the world has ever seen. These days, having 12 cylinders is more a case of wretched excess than ever before, and yet, you can still stroll into your local BMW or Mercedes dealership and get a brand-new 760i, S600 or even an over-the-top G65 AMG, efficiency be damned. Best of all, since the majority of these German powerhouses depreciate as fast as an anchor sinks, nearly any auto enthusiast who dreams of a dozen cylinders can satisfy their carnal desires. Current Star: 2016 Mercedes-Maybach S600 View 28 Photos Diesel Engines Remember how we talked about those glorious V12 engines? Well, you can even get one from Audi that runs on diesel. If your compression-ignition fantasies err more on the side of fuel savings, that's no problem, either. Audi, BMW, Mercedes and Volkswagen have got you covered, with engines starting as small as 800 cubic centimeters (Smart Fortwo). If you want something a little more practical, it's hard to argue with a VW Golf TDI, which will provide plenty of space for you and three of your best friends, plus a fair bit of luggage, all while returning 50-ish miles per gallon. For the purposes of this discussion, we'd rather focus on the asinine levels of torque provided by Germany's high-end diesel engines than the lower-end fuel sippers.

Volkswagen posts quarterly profit despite drop in sales

Volkswagen returned to profit in the third quarter as surging Chinese demand for luxury cars helped offset a 1.1% drop in vehicle deliveries due to the pandemic, sending its shares as much as 3% higher on Thursday. The German automaker's return to the black comes amid spiking coronavirus cases in Europe that led governments in France and Germany to order their countries back into strict national lockdowns on Wednesday. "The coronavirus remains a central problem," Volkswagen Chief Financial Officer Frank Witter said in a conference call with reporters. "This situation now is anything but relaxed." But Witter said the group expected the economic recovery to continue and did "not anticipate any nationwide lockdowns in larger markets." Witter said the takeover of U.S. truck maker Navistar International by Volkswagen's trucking unit Traton was an important acquisition, but the "current economic climate will not make this easy." Volkswagen reiterated it expects to post a profit for the full year, saying its business "recovered noticeably" in the third quarter as sales in China of premium vehicles, including Audi and Porsche sports cars, rose 3%. The quarterly performance was also aided by a series of cost-cutting measures launched earlier this year. Volkswagen said its net liquidity rose to 24.8 billion euros from 18.7 billion at the end of the second quarter. Excluding one-time items, third-quarter operating profit was 3.2 billion euros ($3.8 billion), down from 4.8 billion euros a year earlier, but up from a second quarter loss of 1.7 billion. In a note to clients, Jefferies analyst Philippe Houchois described the results as a "solid performance with strong cash, but relatively muted in the context of the (auto) sector recovery." Last week, German rival Daimler reported a record 24% jump in Chinese demand for its Mercedes-Benz cars, boosting its margins in the third quarter. Italian-American Fiat Chrysler Automobiles and Peugeot manufacturer PSA Group both also posted solid results this week. Witter said Volkswagen could not say for sure whether it would meet EU CO2 emissions targets this year, adding "it will be a tough race." At 1030 GMT, Volkswagen shares were up 2.9% at 129.20 euros. Related Video: Earnings/Financials Audi Bentley Bugatti Lamborghini Porsche Volkswagen

Lamborghini could be sold or spun off from the Volkswagen Group

Volkswagen is reportedly considering a sale or stock listing for its high-end Lamborghini brand. The German automaker is looking to fold the Italian supercar brand into a separate legal entity, reports Bloomberg, which cites "people familiar with the matter" who don't want to be identified "because the deliberations are confidential and no decisions have been made." Any of this sound familiar? The goal of spinning off Lamborghini would be to stockpile more cash and other resources for VW's massive planned push into electric vehicles. Back in March, reports circulated that Volkswagen's "Vision 2030" corporate plan might include plans to focus on the brand's core brands — VW, Audi and Porsche. That means the futures of fringe players like Lamborghini, Bentley, Bugatti, motorcycle brand Ducati and design firm Italdesign (and note this isn't a comprehensive list of brand's under the expansive VW Group umbrella) are up in the air. VW, according to the report, is targeting a market value of $220 billion, which is a big jump from the brand's current $89 billion valuation. Bloomberg pegged Lamborghini's valuation at around $11 billion back in August, buoyed by sales and profits generated by the introduction of the Urus sport utility vehicle. On the flip side, Lamborghini is currently grappling with how best to update its supercar lineup in the face of ever-increasing emissions regulations.