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BMW names new CEO, chairman and head of development

Big changes are afoot in the top ranks at BMW, as the Bavarian automaker has announced not just one, but several appointments in the top floors of its towering headquarters in Munich in what the company itself is referring as "a generational change" in its leadership. The biggest change relates to the chairman of BMW's management board – German-speak for the company's chief executive officer. Effective at the end of the company's Annual General Meeting on May 13, 2015, the company will be run by Harald Kruger. The 49-year-old mechanical engineer has been with BMW since 1992 and has sat on its board since 2008, and has until now been responsible for production for the entire BMW Group. The chairmanship of the board of management currently belongs to Dr. Norbert Reithofer, whom the management is endorsing to chair the supervisory board (which Americans might call the board of directors). That role in turn is currently held by Professor Joachim Milberg, who will step down from his position in order to make way for Reithofer to take his place. Milberg is earmarked to remain with the company to oversee its corporate social responsibility and charitable activities. BMW has also announced the appointment of Klaus Frohlich to serve as its head of development with immediate effect. In his new capacity, Frohlich replaces Dr. Herbert Diess, who in turn has left Munich to take over the Volkswagen passenger car division. Below you'll find statements from both BMW and VW on their new appointments. BMW Group takes steps to initiate a generational change at the head of the Board of Management and Supervisory Board 09.12.2014 - Harald Kruger to become Chairman of the Board of Management in May 2015 - Dr. Norbert Reithofer proposed to succeed as Chairman of the Supervisory Board - Prof. Joachim Milberg to take leading role in the BMW Group's worldwide CSR activities and charitable foundations - Klaus Frohlich appointed to Board of Management with responsibility for Development Munich . At its meeting today, the Supervisory Board of BMW AG took the first steps to initiate a generational change at the head of the company's Board of Management and Supervisory Board. Harald Kruger will become Chairman of the Board of Management effective the end of the Annual General Meeting on 13 May 2015. The current Chairman of the Board of Management, Dr. Norbert Reithofer, will be put forward for election to the Supervisory Board at the 2015 Annual General Meeting.

2014 Volkswagen GTI to start a new hot hatch era in Geneva

The upcoming Geneva Motor Show is going to be stocked with important new production models and sexy concept cars, but hot hatch enthusiasts will undoubtedly see it as the coming out party of the MkVII Volkswagen GTI. And while we've only got European specifications and pricing to go on for now, we can tell from the get-go that the new GTI will be a proper heir to VW's hot hatch legacy.
This seventh-generation GTI is powered by a turbocharged, direct-injection 2.0-liter four-cylinder engine, which makes 220 horsepower and 258 pound-feet of torque in base form. For the first time ever, Volkswagen is also offering a performance pack for the GTI as well, which ups the horsepower to 230 (torque remains unchanged). With a slightly lower curb weight to push around - the new base car weighs 2,978 pounds versus 3,034 for the current three-door GTI - 0-62 miles per hour is now achieved in 6.5 seconds, and top speed is 153 mph. (Cars with the performance pack offer 0-62 mph in 6.4 seconds, and a 155-mph top speed.) Buyers my choose between a six-speed manual transmission or an optional six-speed DSG unit.
Visually, the new GTI has obviously adopted the slant-nosed looks of the MkVII Golf, though with plenty of added drama. The exterior is dominated by the 17-inch "Brooklyn" wheels wearing 225-section rubber, and the aggressive front fascia gets black honeycombed inserts in the upper and lower grille sections. At launch, Volkswagen will offer the GTI in three colors: the Pure White seen here, Tornado Red and Black. Tartan patterned seats are of course still an option for the interior, while the GTI-specific steering wheel and shift knob are standard.

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.