“Now we're really moving up,” says Martin Winterkorn, Volkswagen AG executive vice president and head of technical development. “Our current targets are the Mercedes-Benz S-Class and BMW 7-Series.” Recent acquisitions of Bugatti and Lamborghini are joined by Bentley in the expanding Volkswagen Group. This gives VW a solid opening into the lucrative “executive” market, where automakers can add sales value and appeal faster than adding production cost. The need for profitable prestige models ...

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