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Volkswagen profit jumps as it warns of a cooling auto market

FRANKFURT, Germany — Volkswagen says its profits jumped 44% in the third quarter thanks to a more profitable mix of vehicles in its lineup but warned that global car markets are slowing more than expected and lowered its forecast for annual sales. After-tax profit rose to $4.42 billion (3.98 billion euros) as revenues rose 11% to $68.27 billion (61.42 billion euros). The sales margin of 7.8% exceeded the goal of 6.5-7.5% as vehicles bringing higher profits took a larger share of sales. The Wolfsburg-based automaker pointed to the headwinds facing the industry by saying that it expects "vehicle markets will contract faster than previously anticipated in many regions of the world." It said sales would be "on a level" with last year's record of 10.8 million vehicles. Previously it had expected a slight increase. The company said its profits would be in the lower end of its forecast range. Global automakers are facing a slowdown in sales amid disputes over trade and from pressure in the European Union and China to develop and sell low-emission vehicles that require heavy investment in new technology. Ford and Renault have issued profit warnings in recent days, while Daimler, maker of Mercedes-Benz luxury cars, lost money in the second quarter and is expected to outline a cost-cutting strategy for investors on Nov. 14. Volkswagen is leading the push into electric vehicles in Europe by launching its ID.3 battery-powered compact car at prices it says will make zero local emission vehicles a mass phenomenon. The company was able to increase earnings in the quarter despite an 18% rise in spending on research and development.

The 2018 Audi SQ5 looks mean and switches to turbo power

Audi's huge Q8 wasn't the only crossover introduced by the German automaker at this year's Detroit Auto Show. Right alongside it came the 2018 SQ5, the brand's high-performance midsize crossover. This newest version ditches the previous generation's supercharger in favor of a turbo for its 3.0-liter V6. The powertrain is similar to the one used in the latest S4 and S5. Horsepower remains unchanged compared to the last SQ5 at 354, but torque sees a healthy increase to 369 pound-feet, and it's available anywhere from 1,370 to 4,500 rpm. The car itself weighs about 77 pounds less, too. It's a combination that should make the SQ5 pretty entertaining off the line. Coupled to the turbo engine is an eight-speed automatic and standard all-wheel drive. Power delivery and handling can be enhanced with a Quattro sport rear differential that can shuffle power left and right to aid cornering. Audi says the torque vectoring system can send almost all rearward power to one wheel as necessary. The differential is available as part of the S sport package, which comes with other upgrades including air suspension. The suspension gives the crossover a lower ride height by default. Both height and firmness can be adjusted, and it offers an "offroad" position that raises the car for maximum ground clearance. Inside, the SQ5 comes with a sportier interior than its Q5 counterpart. It comes with prerequisites such as a flat-bottomed steering wheel and more-bolstered seats. Audi also provides a Bang & Olufsen sound system and standard Apple CarPlay and Android Auto. The cabin experience can be further augmented with Audi's Virtual Cockpit LCD instrument panel, as well as driving assists such as a variable-ratio steering rack and adaptive cruise control that can handle stop-and-go traffic from 0 to 40 mph. Audi will begin selling the new 2018 SQ5 here in spring of 2017. Pricing for it and the Q5 has not yet been released. Related Video:

Audi execs mulling turbocharged, entry-level R8

The just-launched, second-generation Audi R8 is apparently a pretty fantastic example of Vorsprung durch Technik. While it's sublime to drive, Audi might already be missing some potential sales due to the lack of an true entry-level version in the supercar's lineup. Lending further credence to an earlier rumor about just such a model, company execs are saying to expect an entry-level, turbocharged R8 to launch in the coming years. "It is inevitable that we will go to a turbocharged motor for it at some point," Audi technical development board member Dr. Ulrich Hackenberg said to Motoring. "It would be in this model cycle, to give us a fuller range." The executive certainly isn't mincing words about forced induction, but the V10's position in the lineup is also secure. "It doesn't mean we are not going to do a turbo, but naturally aspirated is here to stay as well," he said. If Dr. Hackenberg's direct assertion isn't enough, Quattro GmbH chief Heinz Peter Hollerweger further clarified to Motoring that the turbocharged engine would slot into the bottom of the R8's range. An unnamed "senior sales and marketing source" within the Audi also said that the company's turbo five-cylinder was among the currently favored choices for the application. The first rumors about the R8 getting a forced induction version arose just a few months ago. At the time, Audi's electrically turbocharged, 2.5-liter inline five-cylinder was considered an option. The model would solve a problem in markets, like China, that severely tax big displacement engines. Customers might not even need to worry about giving up too much performance either. In the Audi TT Clubsport Turbo concept, the powerplant has a total output of 600 horsepower and 479 pound-feet of torque. While 10 fewer ponies than the latest R8 V10 Plus, it would bring 66 lb-ft more twist to the supercar.