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VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It'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.

VW App-Connect gets celeb-studded campaign

Volkswagen is hoping that some celebrity faces help get the word out about App-Connect in the German brand's latest models with the MIB II infotainment system. The humorous, new commercial titled Party (above) stars Adam Scott, Michael Pena, and Christopher Mintz-Plasse, and the three of them are using voice commands and the touchscreen to show off the tech while planning a party. Another 30-second commercial titled Sorry with the three guys is coming along soon, as well, to advertise it even more. App-Connect is part of VW's adoption of Apple CarPlay, Android Auto, and MirrorLink. By supporting all three standards, pretty much every smartphone user can plug into the vehicle's infotainment system. The tech is already available on the 2016 Tiguan and Golf R but is rolling out to all of the German brand's vehicles this model year, except for the Touareg and Eos. VOLKSWAGEN DEMONSTRATES ADVANCED CONNECTIVITY IN NEW CELEBRITY-DRIVEN MARKETING CAMPAIGN Sep 17, 2015 First brand to offer all three major smartphone integration platforms; available on virtually every model and nearly every trim Highlights App-Connect, a new technology which makes compatible smartphone integration seamless through Apple CarPlay®, Google Android Auto™, and MirrorLink® Multimedia Campaign stars Hollywood celebrities Michael Pena, Adam Scott and Christopher Mintz-Plasse Herndon, Va. – Volkswagen of America, Inc. today announced the release of a new advertising campaign that highlights the brand's all-new infotainment system, MIB II, and its advanced smartphone integration technology, App-Connect. As part of Volkswagen's available Car-Net® suite of connectivity offerings, App-Connect allows for seamless integration of compatible smartphones across Apple CarPlay®, Google Android Auto™ and MirrorLink®; making it the first automaker to do so. The campaign kicks off with two 30-second television commercials, titled "Party" and "Sorry" starring Adam Scott, Michael Pena and Christopher Mintz-Plasse. In each spot, the celebrities navigate App-Connect by utilizing voice commands, the vehicle's touchscreen, and steering wheel controls.

Skoda plans big investment into electric cars as part of rebound effort

PRAGUE — Czech carmaker Skoda, part of the Volkswagen Group, said on Wednesday it would invest around 2.5 billion euros over the next five years on future technologies, with more than half going to electric vehicle investment. The Czech Republic's largest exporter is hoping for a rebound in 2021 from a global car sales drop but faces uncertainty over the coronavirus pandemic and a semiconductor shortage rattling the industry. "This year is likely to be another big challenge," finance director Klaus-Dieter Schuermann said. "We expect Skoda Auto's group performance to improve, with sales revenue significantly above the level of last year." Skoda reported on Wednesday a 54.5% drop in 2020 operating to 756 million euros ($894 million). Sales revenue dropped 13.8% to 17.1 billion euros. Global deliveries remained above 1 million cars for a seventh straight year despite a 19% drop after production outages at the outset of the pandemic and a fall in China, its biggest single market. Chief Executive Thomas Shaefer said the car company was managing the semiconductor shortage "but it will follow us for awhile" and the impact was not visible yet. Skoda's core market in Europe would be electric in the future, Shaefer said, although it was still not time to completely switch away from traditional models, which include the launch last year of a new generation of its flagship Octavia model. It has also started production of the all-electric Enyaq iV model, which is a version of Volkswagen's ID.4. Skoda plans investments of 1.4 billion euros into electromobility development as part of its five-year investment plan. Investments will also go into digitalization activities and plant modernization. Related video: Green Volkswagen Skoda Electric