BMW profits hit the skids, VW to cut big

BMW Profit Falls on Costs; Volkswagen to Cut Thousands of Jobs

Bayerische Motoren Werke AG, the world's biggest luxury carmaker, reported its third consecutive quarterly profit decline, while Volkswagen AG said it will cut ``thousands'' of German jobs as record raw material prices eat into earnings.

``We have to reduce the workforce a considerable amount,'' said Volkswagen Chief Financial Officer Hans Dieter Poetsch during a conference call with analysts. Exchange rates and raw material costs are ``challenges,'' BMW Chief Executive Helmut Panke said.

European carmakers have had to cope with a strengthening euro, which makes vehicles more expensive in countries like the U.S. and China, as well as soaring prices for steel and oil, both of which reached records in the past year. Demand for new cars has been stagnant in Europe for the past three years as unemployment hovered near record highs in Germany.

Full article here


TheRealJTTheRealJT - 11/4/2005 9:40:13 AM
+1 Boost
I'm glad Germans prefer the mid-range Corolla, I mean Jetta, to the bottom of the line, underpowered 2 liter 3-series.

It matters even less to me considering the opinion comes from the same people that think David Hasselhoff is a rock star.


Anim8orAnim8or - 11/4/2005 3:11:36 PM
+1 Boost
Larry...

It's fun to read foolish nonsense from ignorant car fans like Larry. I have a saved little fact sheet for people like our poor misguided friend:

- Audi has its own separate technology division (apart from VW), and its own high-performance division (quattro GmbH). Audi separated its technology from VW 5 years ago. They do still share VW's massive cash and some parts. That's just good business (although the same can't be said for the fiscal disaster that is Daimler Benz).

- Audi manufactures most of its engines and sells them at cost to VW. Audi is one of the world’s largest engine providers. For example, the all aluminum 260 HP Audi 3.2 FSI (actually a 3.1 liter engine) IS NOT the same as the metal-bodied 250 HP R32 from VW.

- Audi has its own design teams (exterior/interior/technology/ergonomics, etc.), NOT SHARED BY VW.

- All new Audi's from the A4 up use the advanced ‘Torsen’ differential all-wheel drive system (quattro). 60% rear, 40% front, permanent. Up to 100% of power can be transferred to either the front or rear axels.

- VW's use the less advanced 'Haldex' all-wheel drive (4-motion). It’s front drive by default. Up to 50% of the power can be temporarily sent to the back wheels.

- Unlike Acura, Infiniti, and Lexus, most Audi models are built in Audi-only manufacturing plants. The exception is the Q7, which is built in the same facility that produces the Porsche Cayenne and VW Touareg. But the Q7's platform was significantly re-engineered and redesigned by Audi, resulting in an longer chassis with a higher level of rigidity.

Even the forthcoming TT, which is supposed to share the same platform as the Golf, is actually dramatically different from any VW, posessing a completely different drive train and a far stiffer all-aluminum chassis.

- The A4 is its own platform (B7), NOT SHARED BY VW.

- The A6 is its own platform (C6), NOT SHARED BY VW.

- The A8's D3 platform was created by Audi. Even though the Pahaoton was released first, Audi developed the D3 platform. VW then copied the platform for Phaeton production at a different plant. Audi's platform is still superior, being lighter and stronger than its VW offshoot.

So claiming that an Audi is just a dressed up VW is an outdated and incorrect assumption.
So when someone states that an Audi A4 is a Jetta (two completely different platforms), they are simply wrong.

I suppose it’s difficult for some to accept the truth: that Audi is selling just as well as MB and BMW. Actually, considering Audi has a smaller model line-up (to be filled in by 2010) it’s doing relatively better proportionately than its German competition. All this despite Audi’s relatively poor American sales (thanks to ‘60 Minutes’). But alas, America is not the world.

Don’t get me wrong, I think that both MB and BMW make superb cars on the whole. But Audi is right there with them, creating cars that are every bit as compelling as the other two German lux brands. And with cars like the A8 and RS4, Audi is also taking the lead, one model at a time.

It’ll be interesting to see if Audi meets its objective to surpass both BMW and Mercedes and become the world’s #1 luxury brand by 2010. Looking at Audi’s recent success and near-future technology, I think Audi is very well positioned to take the top spot.

Audi has arrived. It's a tier one company.

Get used to it, or kindly get out of the way.





Anim8orAnim8or - 11/4/2005 3:43:26 PM
+1 Boost
One more thing:

This Larry guy stated that Audi will only succeed if it develops a rear-wheel platform.

Audi has already done that, and has gone much further. The latest quattro is rear-biased. I recently tracked a 2006 S4. It's absolutely incredible. There is no overt oversteer or understeer. The handling is actually neutral, which is an utter revelation. However, 'power sliding' is not only still possible, but is more controllable and an absolute blast. It also handles far, far better than the M3, which is also a great car. But the S4 is much, much more advanced in its handling. It leaves traditional rear-drive cars in the dust. I can never go back to BMW's drive train after experiencing Audi's new quattro.

As for FronTrack, it's only available on entry-level Audis'. But all the models have quattro available, including the new A3 3.2. All S and RS cars come with rear-biased quattro as standard.

So I couldn't care less if Audi doesn't have a rear-drive platform. Quattro is better.


Anim8orAnim8or - 11/4/2005 8:07:15 PM
+1 Boost
Just read the South Beach post from Larry.

Turns out he's just another greasy-haired BMW male bimbo who thinks a car deserves merit because dumb chicks with no automotive knowledge dig it.

In that case, go ahead and buy all the BMW's you want. There's tons of posers like that here in LA too. They all deserve each other.

But If I were crusing 'chicks' in my Audi (an A4 3.0 Cabriolet), I'd choose the smarter, more attractive, more sexually sophisticated women who know Audi's are superior any day.

Life's good in a topless Audi.


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