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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

The Bugatti EB110 showed the way for future hypercars

For well over a decade, the Bugatti EB110 remained almost as unknown as if it had never existed. Bugatti closed its doors for the second time in 1995, so the EB110 spent the rest of the 1990s at the top of an empire found only in history books. With no direct successor to pass its torch to, the wedge-shaped coupe once celebrated by Michael Schumacher as the supercar to tame them all faded from the car world’s collective memory, even though some of the records it set remained unbroken. Its star began to rise again during the 2010s thanks to 1990s nostalgia, or because enthusiasts realized 21st-century Bugatti models owe more to the EB110 than to the pre-WWII Type 57. Either way, itÂ’s finally accepted as an influential part of the Bugatti story. Its unusualness adds to its mystique; it was manufactured in FerrariÂ’s sun-dried back yard, yet it propelled the French company into the modern era. Italian entrepreneur Romano Artioli knew the automotive industry well before he purchased the rights to the Bugatti name in 1987. He had built his vantage point on decades of experience. He owned one of the first Opel dealerships in Italy, he later became the countryÂ’s official General Motors importer, and he also distributed cars for Ferrari, among other automakers. He enlisted some of the most respected engineers and designers to help him relaunch Bugatti while honoring its tradition, but he made one significant exception. BugattiÂ’s roots are in France, in a picturesque small town near the border with Germany named Molsheim. Alsace is better known for sauerkraut than supercars, so he decided to base the born-again automaker in a town called Campogalliano located on the outskirts of Modena, Italy. Setting up shop a stoneÂ’s throw from the headquarters of Ferrari, Lamborghini, Maserati, and De Tomaso allowed him to tap into the Motor ValleyÂ’s deep pool of suppliers and workers well-versed in high-end cars as he assembled the pieces needed to create the first new Bugatti since 1956. Right away, Artioli wisely decided to begin the project with a blank slate instead of borrowing a chassis, an engine, or both from another company. He felt Bugatti needed to be an automaker, not a coachbuilder or a purveyor of kit cars. Early EB110 prototypes were built on an aluminum chassis, and they wore a body designed by Marcello Gandini of Bertone fame. When Gandini spoke, everyone listened and no one dared to contradict him.

New limited-edition Bugatti rumored for Pebble Beach

The Supercar Blog has heard from its VIP sources that Bugatti has a new special-edition offering planned for debut at Pebble Beach. The Molsheim brand enjoys playing to its deep-pocketed crowd at the annual Northern California fest, having introduced the special edition $5.8M Divo there last year, and regularly hosting Grand Tour driving events around the concours. TSB didn't get details on the coming model, but it was told that part of its production run has already been sold. In 2017, ex-Bugatti CEO Wolfgang Durheimer said the identity of a Chiron successor would need to be answered by this year, after spending 2018 exploring different ideas. Current brand CEO Stephan Winkelmann has spoken broadly about his intention for the automaker and vaguely about what kinds of models could come. He's repeatedly nixed the idea of a Bugatti SUV and said sedans constitute "a segment that is losing momentum," so a four-door wouldn't be worthwhile. And although he has said the brand "still [has] a lot of plans" for the W16 engine, he most recently mentioned a more affordable, electric daily-driver, perhaps something that would sit on a brand new platform. Whatever gets the green light as a second model, its primary task is to increase Bugatti's volume. If a report in Automobile from last September is accurate, we should expect three Chiron-based trims to show before the production run ends: a go-faster SS, a Superleggera, and a targa Aperta. Winkelmann has also said he doesn't want to do an Aperta version of the Chiron; still, we're left with nearly every option open for the rumored debut at Pebble. TSB says Bugatti is working to unveil two new cars per year. The La Voiture Noire was one, the Pebble Beach car could be the second, and there's another rumor of a third car to come at the Grand Tour drive. Just two months away from the event, it's likely we'll start getting glimpses before a reveal on the lawn.