Price Slashed on 2040-cars

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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:

China bans military license plates on luxury autos

Driving a vehicle with a military license plate in China provides many privileges. Legally reserved for official vehicles only, the designation apparently allows drivers to enjoy special liberties on the roads, including breaking traffic laws, filling up with free fuel and receiving light-and-siren escorts through congested cities. So attractive are the benefits that there is a secondary market for used legal and counterfeit plates - especially among those wealthy enough to afford luxury cars. But all of that is reportedly coming to an end, as President Xi Jinping, chairman of the Central Military Commission, is on a mission to fight corruption in his country.
A new license plate system goes into effect today, and it is designed to "maintain social harmony, stability and the reputation of the military," says the PLA Daily, the armed forces' official newspaper. While the abuse has been going on for many years, the internet has put the spotlight on the bad behavior, and the negative press does not represent the morals and true colors of the armed forces, say officials.
While military-plated Porsche drivers have been singled out as offenders, Bloomberg notes that all vehicles with engine displacements above 3.0 liters and with a sticker price in excess of about $73,000, will be banned from receiving military plates. This includes vehicles from Audi, Cadillac, BMW, Mercedes-Benz, Jaguar, Land Rover, Lincoln and the Volkswagen Phaeton. Even if drivers are savvy enough to circumvent the new issuing system, the military has put technology at toll gates to catch users of counterfeit plates. There has been no word on the punishment if caught.

Porsche to only build next Panamera in Leipzig?

Manufacture of the next-generation Porsche Panamera could be moving, if a report from Reuters is true. The current-generation Panamera range has its bodies welded together and painted at a Volkswagen facility in Hanover before being shipped to Leipzig where final assembly takes place.
According to Reuters, Porsche is looking to cut VW out of the equation and focus production of the Panamera in Leipzig. While this could cost 800 of the 14,300 workers at Hanover their jobs, it's not entirely clear what Porsche stands to gain by the move. It recently invested 50- million euros (about $680 million at today's rates) on a paint and body shop for its Leipzig factory, ostensibly so the facility could have Macan production underway by that car's spring 2014 on-sale date. If the facility was also designed with next-generation Panamera production in mind, then Porsche's decision to put all of its eggs in one basket could make a lot of sense. It currently ships the semi-completed Panameras from Hanover to Leipzig, a distance of around 160 miles by road, and presumably it's a costly and time-consuming process.
The Leipzig factory produced 27,000 Panameras last year, although it's unclear just what its production capacity really is. Besides the Panamera and the upcoming Macan, the factory also builds the Porsche Cayenne.