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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.

VW air rule violation allegations 'stunning,' $18B fine unlikely

The big automotive news today was the US federal allegations that VW quietly and illegally installed software on approximately 482,000 diesel vehicles sold in the United States so that they would not return substandard results on government emissions tests. To say the least, this is potentially a very big deal. You can read the details of the government's allegations here. The problem seems to be with the NOx trap. Sam Abuelsamid, a former AutoblogGreen editor who is now a senior research analyst at Navigant Research's Transportation Efficiencies program, told me that there were some hints that VW's diesel emissions strategy had issues a while back. The vehicles affected by today's announcement are all equipped with the 2-liter, 4-cylinder TDI, he said. They all have the lean NOx (nitrogen oxides) trap, whereas all other current modern diesels use urea to treat NOx emissions. "When VW launched those vehicles, I went to the TDI launch program in Santa Monica and asked them if they were going to put the diesel engine into the Tiguan because that would be an ideal application," he said. "They said no, because it would be too heavy. Turns out, the NOx trap was enough to meet the emissions standards in the smaller cars, but not the Tiguan. That seems to be where the problem is, in the NOx trap. All the other big VW and Audi diesels, they use urea, just like BMW and Mercedes do." Abuelsamid added that, in California, to do an emissions test, testers don't stick a probe up the exhaust, as you would suspect. Instead, they just do a visual test to make sure nothing was tampered with and then plug a scanner into the OBD-II port to read the codes. The news today basically says that the cars were programmed to send out false codes, giving readings that testers are looking for instead of what's actually going on. "That's the background, as far as I know at this point," he said. This could be "a black eye on the auto industry." - John O'Dell Speaking at the AltCar Expo in Santa Monica just hours after the news first broke this morning, Edmunds.com's John O'Dell said the Fed's allegations were "stunning." The idea that VW might have gamed the system, he said, "underscores how important EPA clean air numbers are, that a company would allegedly stoop to this to try and meet them. Obviously, people are paying attention to that sort of thing.

2019 VW Jetta vs. 2019 Honda Civic vs. 2019 Kia Forte: How they compare

The 2018 Detroit Auto Show was dominated by trucks, but there were also two all-new and completely redesigned compact sedans introduced: the 2019 VW Jetta and the 2019 Kia Forte. Follow their respective links to read our first driving impressions of each, but in short, both compacts are better positioned to steal potential customers away from the segment-leading 2019 Honda Civic, which itself was updated for 2019. Besides taking a look their specs and photos, I had the chance to go between them all here in Detroit, crawl around their interiors, sit in the backseats and figure out which of these not-especially-compacts, which all grew with their latest redesigns might have a practicality advantage. We also have full specifications on each model, which are laid out in the handy chart below. Exterior design There's honestly a little bit of the previous-generation Jetta visible in the 2019 Forte profile — especially around the doors and greenhouse. The Jetta, meanwhile, has the same sort of radically swept-back roofline as the Civic that's become all the rage throughout the automotive industry. The 2019 Jetta is also a little more visually interesting than the car it replaced, though neither the Jetta nor the Forte were as radically transformed as the Civic was two years ago. Alright, let's go to the slideshows. View 20 Photos 2019 Kia Forte View 61 Photos View 28 Photos Engines and transmissions The 2019 Jetta, 2019 Forte and 2019 Civic have considerably different powertrain options, with additional choices possible once the VW and Kia go deeper into their lifespans. Both the Forte and Civic rely on naturally aspirated four-cylinder engines in base specification, with the Civic's 2.0-liter engine making more power and a smidgen more torque than the Kia's. The Jetta goes the turbocharged small-displacement route with its 1.4-liter engine. It makes the same power as the Forte, but smacks down both in the torque department. It makes roughly 50 more pound-feet of twist than both naturally aspirated engines. The Honda Civic is the only one to offer an optional engine, which follows in the footsteps of the Jetta as a turbocharged 1.5-liter four-cylinder. Its 174 horsepower is ahead of the others by nearly 40 ponies. However, its 162 pound-feet of torque still falls short of the Jetta. Impressively, all three sedans still offer a manual transmission option, and all of them are six-speed units.