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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

Volkswagen Group names Paefgen head of classics program

You may remember the name Franz-Josef Paefgen. Until recently, the German engineer and executive was head of both Bentley and Bugatti. Before that he was chief executive of Audi, after working for several years at Ford. He technically "retired" earlier this year, but like the cars he helped create, an executive like Paefgen could never really retire. So it should come as little surprise that the Volkswagen Group has named Dr. Paefgen head of its Classic program.
In his new capacity, Paefgen will oversee the historic automobile activities of the entire VW Group, including those of Volkswagen, Seat, Skoda, Audi, Lamborghini, and of course Bentley and Bugatti. It strikes us as a suitable semi-retirement for the man responsible in no small part for the Bugatti Veyron and Bentley Mulsanne, to name just two, and who was decorated in 2006 by the ACO as the "Spirit of Le Mans" for his contribution to endurance racing. Read the official announcement after the break.

Pope Francis gets a papal-themed Lamborghini Huracan

Lamborghini picked a special recipient for the newest and rarest version of its Huracan RWD, giving an ultra limited-edition version of the supercar to Pope Francis in a ceremony Wednesday at the Vatican attended by company executives. The new Popemobile, it's not. Fittingly, according to Catholic News Agency, it's the seventh version of the Huracan, the Italian company's entry-level model. It's set to be auctioned at RM Sotheby's on May 12, 2018, with orders from the Holy See to split the proceeds between three charitable causes: restoring villages on the Nineveh Plain in Iraq, helping victims of human trafficking and supporting missionary work in Africa. The papal Huracan RWD is done in Monocerus white with Tiberio yellow stripes running along the hood, roof and body, reflecting the colors of the flag of Vatican City. It was blessed and autographed by the pontiff in the presence of Lamborghini Chairman and CEO Stefano Domenicali, board members and two employees who helped build the car. The Huracan is the successor to the Gallardo, Lamborghini's best-selling model of all time, with a design inspired by the hexagonal form of the carbon atom. It's powered by a naturally aspirated, 5.2-liter V10 that makes 602 horsepower and 413 pound-feet of torque. Normally, the sports car starts $199,800. But a version blessed and autographed by the pope? Priceless...Related Video: