2009 Volkswagen S on 2040-cars

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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.

Ducati is not for sale according to VW supervisory board

Volkswagen's planned sale of motorcycle brand Ducati and transmission maker Renk currently has no majority backing on the carmaker's supervisory board, with opponents to asset sales feeling invigorated by the group's strong results. Europe's largest automaker has tasked banks to evaluate options for Ducati and Renk including divesting the two divisions as it aims to streamline operations to help fund a post-dieselgate strategic overhaul. Volkswagen has been reviewing its portfolio of assets and brands since announcing in June 2016 a multi-billion-euro shift to electric cars and new mobility services as part of its so-called Strategy 2025. Five bidders have been shortlisted to buy Ducati, including Italy's Benetton family, with offers received valuing the brand at 1.3 billion-1.5 billion euros ($1.76 billion), a source said on Saturday. But VW's labour leaders, occupying half the seats on the 20-member supervisory board which decides on asset sales, resist a sale of Ducati and Renk without compelling financial reasons. "The employee representatives on Volkswagen's supervisory board will neither approve a sale of Ducati, nor one of Renk or MAN Diesel & Turbo," a spokesman for VW group's works council told Reuters late on Saturday. "Everyone who can read the VW half-year results should know: We don't need money and our subsidiaries are not up for grabs by bargain hunters." Six-month operating profit at VW group jumped 19 percent to 8.9 billion euros, the carmaker said on Thursday, as cost cuts and R&D improvements at the core namesake brand earned VW a respite from the billions of euros in costs for fines, vehicle refits and compensation related to its dieselgate scandal. One source at VW said that given strong union opposition, VW is now reviewing the plan to sell Ducati as it doesn't want to risk working with labour on implementing a hard-fought turnaround plan for the VW brand, seen as crucial by investors. Though Ducati is owned by VW's luxury brand Audi, the VW group's supervisory board has to approve a possible sale. Audi declined comment. The billionaire Porsche and Piech families, controlling 52 percent of voting shares in VW and holding four supervisory board seats, do not support selling Ducati or Renk, two other sources at VW group said. A spokesman for Porsche SE, the family's holding company, declined comment.

VW teases GTI Supersport Vision Gran Turismo concept

Volkswagen was among the first to demonstrate its Vision for Gran Turismo with the GTI Roadster concept, last year. And now it's gearing up to release another one. Previewed in the video clip above and the images in the gallery below, the new GTI Supersport is once again conceptually based on the German automaker's iconic hot hatch. But instead of a roofless design rendered in red, this one has a fixed roof with pseudo NACA ducts and white bodywork, along with twin nostril air extractors in the hood, a giant carbon-fiber rear wing and diffuser, and large side vents. In short, it looks like it'll be awesome, and we'll likely see the full thing before too long – so watch this space.