Audi: A6 Quattro Premium Plus on 2040-cars

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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.

2017 Audi S5 First Drive

Let's start with the obvious elephant in the room: The new 2017 Audi S5 looks mostly like the model it replaces. Is that a bad thing? We headed to Portugal to test out the S5 on that country's serpentine back roads, and to see if there's something more substantive behind its evolved exterior. Only compared to the decidedly more evocative Mercedes-AMG C43 Coupe does the svelte S5 come across as a little frumpy. It takes parking the new S5 next to the old one to spot the details. A tweaked profile. A more pronounced belt line. A power-dome hood. Narrower A-pillars. The new S5 is different, but the same, in that grand Audi tradition. Underhood, the differences are again evolutionary. The original S5 featured a 4.2-liter, naturally aspirated V8. A few years back, that was replaced by a supercharged 3.0-liter V6, which in turn has been supplanted in the 2017 S5 by a turbocharged 3.0-liter V6. The turbo, a twin-scroll unit nestled between the cylinder banks, helps the direct-injection engine make a healthy 354 horsepower and 369 pound-feet of torque. That power, 21 hp and 44 lb-ft more than its predecessor, is channelled through Quattro all-wheel drive. The newly developed V6 mates exclusively to a conventional eight-speed automatic, which seems like a step backward. Last year's S5 offered either a six-speed manual or a seven-speed dual-clutch gearbox. We pressed Audi and got the answer we expected: Demand for the stick was nonexistent outside the United States (go America!) and the dual-clutch couldn't handle the 44 pound-foot increase in torque. Curiously, the A5 on which the S5 is based trades last year's eight-speed autobox for a seven-speed dual-clutch. It sounds like someone at Audi put the wrong transmission in each car, but in reality the S5's torquey engine is well-suited to the refined eight-speed. Kick the throttle, get into boost, and all four drive wheels scrabble for traction, especially on the wet pavement we encountered outside of Porto, Portugal. Punch the S5 to pass on a tight two-lane road and the sport exhaust roars with the kind of guttural growl we want to hear in a sporty coupe. It positively scoots. Though its Volkswagen MLB 2 platform is new, the S5 rides and handles like a more refined version of its predecessor. Considerably less road rumble penetrates the cabin, and the S5 strikes a pleasant balance between grand-touring plush and sports-car firm.

Audi tops Consumer Reports' brand rankings while Tesla leads domestics at eighth

Tesla supplanted General Motors' Buick division as the top-ranked US automaker in Consumer Reports annual brand rankings, though the electric-vehicle maker finished eighth among global automakers. Buick had finished atop CR's domestic car-brand list for three years before Tesla leapfrogged it. Scores were calculated from a combination of performance, owner satisfaction, and reliability. CR noted that Buick scored big on reliability but not so high on performance, while Tesla appeared to present the opposite case. Volkswagen's Audi division repeated as the best overall brand for the second straight year, beating out VW's Porsche unit, BMW, Toyota's Lexus division, and Subaru. Kia and Mazda followed those brands, while Honda finished ninth, between Tesla and Buick. Consumer Reports took results from 31 brands. Reliability issues related to the Toyota Tacoma helped drop that Japanese automaker out of the top 10. Take a look at CR's results for its Annual Brand Report Card here. That Tesla, Audi, and Porsche placed so high is topical, given some of the issues plaguing those automakers. Audi, Porsche, and their parent VW have been coping with the effects of the diesel-emissions scandal that broke back in 2015. The scandal has cost Europe's largest automaker billions of dollars, and forced VW to put a stop-sale on diesel-powered cars in the US in late 2015. And while the Tesla Model S improved from the "worse-than-average" label CR gave it in its 2015 Annual Auto Reliability Survey, the problematic falcon-wing doors on the Tesla Model X SUV pulled that model's reliability scores lower last year. Additionally, the Model X's climate-control system and door locks have also caused issues. Toyota and Lexus finished atop CR's reliability rankings last year. Related Video: