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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.

Ultra-luxury automakers like Bentley and Rolls-Royce need to hurry up with EVs

In the five years that I've worked at Autoblog, I've read a lot of press releases. They're all pretty flowery and self-serving, but the ones that go the extra distance with lavish words and pompous phrasing tend to come from the most luxurious brands, Bentley and Rolls-Royce. And something that they both love talking about is sustainably sourced materials for their vehicles. The descriptions read like they've seen the light about using resources responsibly. That would be great, except for one thing: There's nothing sustainable about multi-ton land yachts with eight or more cylinders. Only one of Bentley's models can be had with fuel economy better than 20 mpg combined when running on gasoline, and guess what, it's not one of the brand's two plug-in hybrids (which are to be commended, but still seem half-hearted when we're talking serious sustainability). And Rolls-Royce is even worse without a single model even hitting 15 mpg combined. These automakers should have at least one EV model apiece. Apparently, there are some coming, but they're still years away, and that frankly shocks and frustrates me for a number of reasons. One of the big ones is that these brands couldn't be better suited to electric propulsion. What makes these cars impressive is their refinement and performance. You can't get much better in either of those categories than with beefy electric motors, which provide nearly silent operation with no gear changes and enormous power and torque ratings. And it's all achievable with a lot less effort than making an 8- or 12-cylinder internal combustion engine quiet and smooth. Sure, battery technology is complicated, and it's expensive and heavy, but all of that is covered by these brand's typical products. They can command prices that would easily absorb the cost of batteries. And the size and weight of current cars mean that loading them up with batteries to achieve range comparable to their gas models wouldn't be a problem, either. Heck, that's the exact strategy being used by GM and Ford to get huge range in their electric trucks. 2020 Porsche Taycan Turbo S View 41 Photos And the cost of the EV technology shouldn't even be that great for Bentley or Rolls-Royce, since they're both owned by companies that are leaders in electric car development with existing technology and the ability to spread costs out over various brands.

Bentley's first EV will be an SUV arriving in 2025 on Audi Project Artemis platform

The first electric Bentley is going to be an SUV, and it will arrive in 2025, according to a report recently published by Car Magazine. It will also be an Audi collaboration, but this second bit of news comes as very little surprise given the companies live under the same roof in the VW Group. When Car questioned Bentley CEO Adrian Hallmark concerning the body style the first EV would take, Hallmark replied, “If you're not in SUVs, you're nowhere.” ThatÂ’s a pretty telling suggestion, and considering the BentaygaÂ’s success, Bentley is smart for heading down the crossover/SUV path first. The next question we have concerns the vitals of the car. What will underpin BentleyÂ’s first big, electric effort? It appears as though Project Artemis is the answer. WeÂ’ve seen rumors and reports flying around about this Audi-led project previously. ItÂ’s been suggested that both Bentley and Porsche would be taking a bite, and these previous reports are ringing true. “With our current cars, we had to get into the engineering largely after they [the platforms] had been done,” Hallmark told Car. “The difference now is that with Artemis we're right in there at the beginning, helping define it. We're not leading it, but we're going to be a beneficiary of it” Audi has previously said the Artemis project/platform would be ready for prime time by 2024, so Bentley clearly already has its foot in the door if it intends to release a car in 2025 on the same chassis.  “Looking forward to electrification, we're going to have closer synergies with Audi,” Hallmark said. “But we will continue to have strong relationships with both brands [Audi and Porsche], and we see this as an opportunity, not a risk. No question – we are electrifying. And we need to find the best way to fast-track that, and to lead the technology charge.” Advanced Level 2 autonomous tech is expected to land with this platform, and we suspect there will be many other enhancements made even above and beyond what is currently possible with the PPE platform (underpinning both the Taycan and E-Tron GT). Artemis is also a project designed to yield much larger electric vehicles than what the VW Group currently has to offer. That fits BentleyÂ’s vision of a flagship SUV, and itÂ’ll also work nicely with a giant Audi offering.