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Auto blog
VW makes $23K on every Porsche sold, more than Bentley or Lamborghini
Fri, 14 Mar 2014It'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.
'Boy Wonder of Supercar Sales' talks Lamborghini
Thu, 03 Oct 2013Brett David has a pretty darn good life. At 26 years old, he's the CEO of Prestige Imports in Miami, which puts him at the wheel of the largest Lamborghini dealership in the US. Prestige also happens to have moved more Audis than any other dealer in three years.
CNBC's Squawk Box had him on for a sitdown in a segment it called "Secret Lives of the Super Rich," where the network highlighted the burgeoning demand for Lamborghinis. Besides talking about the recession-proof Lambo market and his new-age clientele, David explained how he sold his first Lamborghini. At 17. To Missy Elliot. The whole video is really worth a watch, which you can do by scrolling down.
Volkswagen Group previews its wares on eve of Geneva show
Mon, 05 Mar 2012The Volkswagen Group is comprised of 11 brands producing 240 vehicles across 49 factories throughout the world. So the best way to show off the range of the VW family is to cram a few thousand journalists and VIPs into a massive makeshift stand to outline the Group's goals, what's in the pipeline and what you'll be able to buy later this year.
To that end, VW pulled out all the stops on the eve of the 2012 Geneva Motor Show, bringing along 10 vehicles from across the range. We'll be delving into the details of each over the next two days of show coverage, but before that happens, you can read all about what we saw tonight from the cheap seats after the break.