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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.

One Lap of America, with three times the madness

Instead of celebrating last weekend face down in a sombrero full of tequila-spiked OJ and a few lime wedges, 71 racing teams with one set of tires each and no support crews began Cinco De Mayo — and this year's 35th running of the One Lap of America — by hitting the wet skid pad at Tire Rack's headquarters in South Bend, Ind. There were Porsches, Vettes, Camaros and BMWs galore. There was a Miata, a vintage NSX, a Honda S2000 and even an old VW Rabbit. There were GTIs, the odd Evo and, oh yeah, six Toyotas, a couple of Vipers and a couple of GTRs. When the skidding stopped, a 2011 BMW 1M emerged triumphant and led the pack out into the heartland, where it will spend 5,000 miles this week hitting road courses, dragstrips and time trials at tracks as far west as Denver, as south as Fort Worth and then New Orleans. From there, it will barrel north through Mississippi, Alabama, Nashville, Kentucky and back home again to Tire Rack in Indiana. Twenty events, eight venues, with a three-hour window for each event. It's a nonstop, no-sleep, one-week road trip comprising 150-ish friends and brothers, partiers and pro racing drivers, spouses and other family-member combo packs. Some will never speak to each other again, some might end up divorced, some might get married. All of them are nuts. I know this because I made three laps. Three laps I will never forget.LAP ONE: 1984 Vehicle: 1984 Dodge Van Team #0: Jean Lindamood (Jennings), Walker Evans, Parnelli Jones I was present for the inaugural 1984 One Lap of America because I worked at Car and Driver back then and so did Brock Yates. He was the guy who came up with the clandestine, illegal, unsanctioned Cannonball Baker Sea-to-Shining-Sea Memorial Trophy Dash from Connecticut to Redondo Beach, Calif. It ran five times in the 1970s, with Yates joining Dan Gurney in a Ferrari Daytona for the second run. They won, Gurney insisting that "at no time did we exceed 175 miles per hour." One Lap was born of Cannonball nostalgia (read: Brock was bored), and I was beyond game for it. After securing a van from Dodge and two giant decals for the van sides, along with $5,000 in sponsorship from local Detroit Stroh's Brewery, I coaxed my friend, nine-time Baja 1000 winner Walker Evans, into running One Lap by suggesting he didn't have a hair on his ass if he refused. Then I suggested that if he didn't get his best friend and longtime road trip buddy, Parnelli Jones, to go with us, I would actually have to drive the van, too.

Audi kills off its 420-hp four-cylinder engine project

Audi's supercar-slapping, fire-breathing four-cylinder concept engine will remain just that, with Autoblog confirming that it has been internally killed off. Speaking at the launch of the TT RS, the engineering boss of Audi's Quattro GmbH division, Stephan Reil, said the Volkswagen Group had stopped all development of the 420-horsepower, 2.0-liter four it showed in the 2014 TT Quattro Sport Concept car (above). Despite previous assurances that Quattro had roles for both the EA888-based engine and Audi's wildly charismatic 2.5-liter, five-cylinder motor, post-Dieselgate reality has killed the smaller engine. "The 400-horsepower EA888 engine is dead," Reil said. The EA888 engine was conceived and developed by the same man behind AMG's powerhouse 2.0-liter four. Friedrich Eichler left AMG to become the Volkswagen Group's gasoline engine development go-to guy, and he was confident the 420-hp engine could be turned into a production car quickly, as was then-Audi development boss, Ulrich Hackenberg. It was even suggested that because the EA888 engine family bolted straight into the Volkswagen Group's ubiquitous MQB small-car architecture, the little powerhouse could be cheaply and quickly dropped into any of the company's cars that needed an image boost. Since then, Quattro has elevated the five-cylinder motor, switching it to an all-alloy block with a magnesium oil pan to cut down its weight while boosting its power and torque levels. Where the four-cylinder engine was shown with 420 hp and 332 lb-ft of torque, the production version of the TT RS's new five-cylinder engine totes 400 hp and 354 pound-feet of torque. The smaller engine's proponents claimed a 0-62 mph acceleration figure of just 3.7 seconds for the concept TT that carried it, and it might not be a coincidence that the all-new TT RS claims exactly the same figure. The 2.0-liter motor had a torque peak that arrived at 2,400 rpm and began to taper off at 6,300 rpm, while its power apexed at 6,700 rpm, thanks in part to a turbocharger that could feed it up to 1.8 bar of air. Flip to the TT RS' data and you're looking at more torque at lower revs and a touch less power, but at higher revs. That's not a lot of wriggle room for the concept engine to operate, especially when the perceived value of the five-cylinder engine is higher than the four, and the four's development and production costs would be higher than the five's.