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VW announces recall of 26,000 2014 models with 1.8T engines

Volkswagen has followed up on a stop-sale order from earlier this month, announcing a voluntarily recall of 26,400 vehicles that are powered by the brand's 1.8-liter, turbocharged four-cylinder engine. The new mill replaced the despised 2.5-liter five-cylinder in the Jetta, Passat, Beetle and Beetle Convertible last year. Weirdly, though, of the 26,452 units covered in the recall, only 1,655 are customer vehicles.
According to VW, the affected models were built between February 1 and April 6 of this year, and feature bad O-ring seals in the transmission oil cooler. Apparently, the faulty O-rings could cause a fluid leak, as they won't seal between the oil cooler and transmission. VW is blaming a material change from a supplier for the problem.
There have been no fires, injuries, accidents or fatalities relating to this issue, which VW will be fixing free of charge. Customers will need to report to dealers to have the O-rings replaced.

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.

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.