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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.

Stay in the house from the Audi R8 Emmy ad

Audi is sponsoring the Emmys again, and launching an ad alongside the awards show that features a family living in the middle of the desert simply to have an excuse to drive their R8s as much, and as fast, as possible. Which is crazy. Even crazier, you can live in the exact house from the ad for a few days as part of an airbnb promotion. The stay includes chauffeured transportation from Las Vegas McCarran airport, all meals prepared by a personal chef, and an R8 V10 Plus in the driveway available for driving. Did we mention it's a real house and not just an advertising prop? It is. The 1,200 square foot Rondolino Residence sits on 80 acres near Scotty's Junction, Nevada, just over 2 hours northwest of Las Vegas. Beginning September 18, seven three-night stays in October will become available - one booking opens up each day at 9 PM Eastern. The rate is listed at $610 per night, with the bookings running October 10th through November 1st. You can book the experience, or try, on the airbnb page. As for the ad, titled "Desolation," at first it seems like a entertaining jaunt about the lengths people will go to for an amazing driving experience. A deeper (and totally unreasonable - it's just an ad) analysis suggests some truly troubling things going on. For starters, the lackadaisical parents let the children taunt a poisonous scorpion. Will the isolated upbringing and history of cruelty towards animals produce a future serial killer? In our deranged version of this fictional universe, yes. Second, the R8 - spoiler alert, both R8s - get super dirty on the run to the corner store. A corner store, which, seemingly unequipped for coffee roasting nevertheless has fresh artisanal beans sold in half-pound bags. Lacking a bulk purchase option, the plot of the ad surely repeats itself several times a week. That sounds insane, but hey, it's all about the drive. And we do love the "Leadfoot Coffee" easter egg. But we digress. Where is the car wash that left the R8 clean before the drive through the desert? And where is the second R8 parked? The male protagonist clearly drives out of the garage from a position that doesn't leave room for the second car. We can only surmise that there is a underground component to the house in the ad. To be clear, we're still in fictional universe of this ad - the real Rondolino Residence, like the Alamo, lacks a basement.

Audi reveals updated RS7 Sportback in Europe

It was just a couple of weeks ago that Audi revealed a few mild updates to its A7. It even ported those changes over to the warmed-up S7 performance version. All that was missing was the full-steam RS7, and that's precisely what we have here.
Now before you get all excited, note that the new RS7 packs the same powertrain as the model it succeeds, but then again, the existing RS7 hardly lacked in the power department. The 4.0-liter twin-turbo V8 still churns out 560 horsepower and 516 pound-feet of torque, transmitted to all four wheels through an eight-speed automatic. Revealed initially for the European market (with US details presumably to follow), the 0-62 kilometers per hour time is quoted at 3.9 seconds, so the 0-60 mph time ought to match the 3.7 seconds of the preceding model.
What has changed are the subtle tweaks Audi has made to the exterior and equipment upgrades inside. The grille now features has a horizontal section at the bottom with the Quattro logo emblazoned across like all other recently revised RS models, flanked by new headlights (Matrix LED units for the European market). Inside the cabin the air-con vents and shift paddles have been reshaped, and the new MMI system ports over from the new A7 and S7 with 4G LTE connectivity and a Bang & Olufsen sound system.