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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.

Weekly Recap: Takeaways from the Frankfurt Motor Show

We obsessively covered the 2015 Frankfurt Motor Show, and naturally, we selected our favorites from this fall's biggest automotive event. Now that the dust has settled, we're looking ahead to what it all means. Here are three takeaways from the floor in Frankfurt. The Germans are serious about electric vehicles: It's a bit cliche to say BMW, Mercedes, and Audi have downplayed electrics in favor of other technologies, like diesels. For a time that may have been true, but those three companies, along with Porsche and Volkswagen, are emerging as leaders in EV development. That was on display in Frankfurt, when all of them revealed either all-electric or plug-in hybrid models. Gas prices are relatively low in the United States, but clearly the Germans are thinking long-term and globally. Everyone is serious about SUVs: You gotta have one, even if you're Bentley or Jaguar. It's 2015 and it's what consumers want. As Jaguar design director Ian Callum put it, "Not to be in the sector would be a little naive for the sake of purity." It's not just the flashy exotic luxury makers. Nissan showed the Gripz concept, which is rakish, radical, and meant to blend traits of SUVs and sports cars into a vehicle that really crosses over. Look for more, especially in the luxury sector, as Rolls-Royce, Lamborghini, and Aston Martin ramp up their own SUV efforts. There's no ceiling to the luxury market: Speaking of high-end cars, companies are continuing to invest in extravagant wares beyond just SUVs. Even during the recession, ultra-luxury makers remained relevant, and now they're back at full stride. In Frankfurt, that was illustrated by yet another S-Class model, the cabriolet, which will come in S550 and S63 AMG variants in the United States. Ferrari also showed off the 488 Spider, and Lamborghini opened up the Huracan LP 610-4 Spyder. Meanwhile, Bugatti's Vision Grand Turismo concept reminded enthusiasts that it's plotting life after the Veyron. European auto shows always draw the glitziest reveals from luxury makers, and this year didn't disappoint. OTHER NEWS & NOTES 2016 Honda Civic redesigned with snazzier style, turbo power The 10th-generation of the Honda Civic debuted this week at events in Los Angeles and Detroit ahead of its launch in the United States this fall as a 2016 model. Honda fortified the Civic with LED lights, an available turbo engine, and a more tech-laden cabin.

2016 Bentley Continental GT First Drive [w/video]

I'm standing at the edge of a cliff, speechless. I'm looking at the Trollstigen – a serpentine pass with 11 hairpin turns, running down the side of a mountain in western Norway. I've seen this road before in photos, but in person, I'm both giddy and in awe. The pavement looks like haphazardly draped garland on this perfect bit of sculpted land. The Trollstigen ("Trolls' Path" in English) is a huge tourist attraction, and I can see why. But I'm about to have way more fun than the pedestrians who made their way to the summit in buses and shuttles. I'm going to drive this road. In a Bentley. The crew in Crewe claim their Continental GT is the finest grand tourer in the world. And along the Trollstigen, not to mention the other winding roads in western Norway, that's easy to believe. The Continental is big and beautiful. It's supremely comfortable. It has everything a driver or passenger could ask for. And good golly, is it powerful. Bentley introduced the Continental GT in 2003, with a second generation arriving in 2011. For better or worse, the changes for 2016 are minor. This isn't an all-new Conti, rather a light refresh in order to bolster what the big Bentley already does well. I'm not sure if these updates – particularly the front fascia – improve upon the original formula. The most obvious change for 2016 is the front bumper. It's been restyled to incorporate more aggressive fenders and a lower air intake that spans the full width of the car. Around back, there's a subtle lip spoiler built into the deck lid. V8 S and Speed models get a new rear diffuser. Fancy new side vents are present on all models, with a big metallic "B" shape. Finally, new 20- and 21-inch wheel options are available, including attractive directional alloys available on GT Speed models. But I'm not sure if these updates – particularly the front fascia – improve upon the original formula. Less obvious are the interior updates. There are new colors, as well as a straight-fluting pattern on the seats (GT Speed models get a super luxurious quilted pattern). LED lights accent the cabin. The lighting in the instrument panel and on the center stack is brighter and more crisp. You can get WiFi in the car, and can connect up to eight devices at once. But these improvements don't fix longstanding grievances with the Continental interior. For starters, the infotainment system is horrendously outdated and slow to respond.