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Audi CEO says brand's EVs are almost as profitable as its other cars

After, oh, a hundred years or so of building vehicles primarily powered by internal combustion engines, automakers around the world have been and still are pumping billions of dollars into the development of electric vehicle technology. Everything from platforms and batteries to motors and the software to control it all requires untold hours of development, and that takes time and money. Fortunately, it's not going to take long for that massive investment to start paying off, at least according to Audi CEO Markus Duesmann, who told Reuters in an interview that "The point where we earn as much money with electric cars as with combustion engine cars is now, or ... next year, 2023. They are very even now, the prices." As a brand, Audi contributed more than a quarter of overall profit for the massive Volkswagen Group, which has such powerhouse brands as Volkswagen and Porsche among others. Under the Audi umbrella are Lamborghini, Bentley and Ducati, and it seems those high-end branches aren't going anywhere, at least for now. "These brands ... are very valuable very profitable brands, where we can even expand the synergy level in the future," Duesmann said in the interview. "There are no plans whatsoever to get rid of them." Despite the overall profitability of the brand, the ongoing global chip crisis is causing headaches. "We had a very strong first half in 2021. We do expect a much weaker second half," said Duesmann, who added, "We really have trouble." In fact, so serious is the trouble that the brand is forced into "a day-to-day troubleshooting process" to limit the chip-shortage damage. The good news for the automaker is that Audi has been able to boost its profit margin from 8% prior to the pandemic in 2019 to 10.7% in the first half of 2021. The bad news is that various chip shortages aren't expected to get a whole lot better over the rest of the year. Related video:

Lamborghini's path to the future is paved with forged composites

As far back as 1983, Lamborghini has been researching carbon fiber for automotive use. The automaker felt confident enough in its ability to work with the high-tech material in 1985 that a team led by Maurizio Reggiani, now the Lamborghini Board Member in charge of Research and Development, crafted a revolutionary Countach with a chassis made almost entirely of hand-laid carbon fiber. The result was spectacular in that the car's chassis weighed about half of its all-metal counterpart. It turned out that first foray into carbon fiber was just as spectacular when it was finally tested for crashworthiness, but in a completely different way. Catastrophic would be an appropriate word, according to Paolo Feraboli, who now leads Lambo's brand-new Advanced Composite Structures Laboratory in Seattle, Washington. Proving how far Lamborghini has come since that ill-fated carbon-fiber Countach Evoluzione, Feraboli told us during the ACSL's grand opening that today's Aventador, which boasts a high-tech carbon chassis, aced its very first crash test in 2009. Chalk that success up to high-tech computer modeling and the practical application of lessons learned over several decades of trial and error. The dull red monocoque of that crashed Aventador now hangs on the wall at the ACSL like a functional piece of art, a reminder of Lamborghini's cutting-edge milestones of the past. Lamborghini's future will be hewn from what the company calls forged composites. First seen on the stunning Sesto Elemento Concept from the 2010 Paris Motor Show, the patented carbon-forging process forgoes hand-laid sheets, injected resins, and high-heat autoclaves. Instead, wads of randomly oriented carbon fibers that sort of resemble the kind of dough you'd use to make pasta undergo a three-minute press inside a mold. The resulting parts are just as strong as other carbon-fiber bits, but can be mass-produced at a fraction of the cost. While it's true that cost is often a secondary consideration for high-end supercars, it's still relevant. By reducing the cost and increasing the scale of composite pieces, Lamborghini can then afford to spend more money on other parts of the car. It's not just body panels and chassis components that Lamborghini thinks it can build using forged composite technology. The Sesto Elemento featured forged-composite suspension control arms that haven't yet made it into production, but probably will soon.

VW pulls Lamborghini and Bentley from the Paris Motor Show

It's been slightly more than a year since the news that Volkswagen had intentionally cheated on diesel emissions testing broke. Since then, the company's reputation and image have suffered and it has struggled to regain its footing and composure. The automaker is shelling out billions in fines, so cost cutting is inevitable. Today, Reuters reports that Volkswagen subsidiaries Lamborghini and Bentley won't bring their elaborate displays to the Paris Motor Show next week. Auto shows can cost automakers millions of dollars, especially for supercar and luxury car brands that constantly try to compete and one-up with each other. Much of the money and fanfare goes to catering the media, and if an automaker has nothing new to reveal it can be difficult to justify the expense. The company told Reuters that it plans to attend smaller events that focus more on potential buyers. The Volkswagen group as a whole has shifted it's focus, both when it comes to products and auto shows like Paris. Next week, the automaker will be focusing on electric vehicles and electromobility. The company plans to reveal a new EV with 373 miles of range, eclipsing both the Tesla Model 3 and Chevy Bolt. Volkswagen has plans for 30 new electric vehicles by 2025. Lamborghini and Bentley aren't the only major automakers skipping Paris. Ford, Volvo, and Aston Martin have all decided to save money and focus their efforts elsewhere. Related Video: