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BMW looking to save billions with cost cuts

BMW is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO Norbert Reithofer (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.
According to Automotive News Europe, Reithofer is none too pleased about costs at Mini and on the 1 Series, although neither AN nor its source story, from Germany's Manager Magazin, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.
What may happen, though, is that BMW attempts to trim 100 million euros ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper Muenchner Merkur. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.

Xcar checks if BMW's i8 offers moves as electrifying as its looks

If you were to plot the general opinion about hybrids since their introduction among auto enthusiasts, the resulting graph would likely be shaped somewhat like a "V." In the beginning interest was high, simply due the novelty of these new powertrains, then the line would gradually fall as the models got the stereotype of being boring commuters. Today, though, things might be back on the upswing. Vehicles like the McLaren P1, Porsche 918 and BMW i8 are showing that a hybrid doesn't have to be synonymous for dull. In its latest video, Xcar Films aims to find out if BMW's electrified sports coupe actually earns the brand's old moniker as the ultimate driving machine.
While the focus here is on what the i8 is like behind the wheel, one of the main highlights for the viewer is the interesting ways that Xcar shoots the BMW. It's not necessarily a beautiful vehicle, but seeing it in motion reveals all sorts of little intricacies that still photos don't pick up. For example, our eye catches the flying buttresses and little crevices scooped out of the corners when we get a look at the rear. It's just a fun car to look at.
With its 1.5-liter, turbocharged, three-cylinder engine and electric motor, the i8 positions itself as the future of automotive performance. But its intriguing looks and cutting-edge use of carbon fiber would be wasted if the coupe didn't drive well. We won't spoil the final verdict, though, you'll have to watch the video above.

BMW recalling 1 Series ActiveE over bad drivetrain housing

There are always growing pains when automakers introduce new technologies. BMW is learning this with the electric powetrain used on the 2011 BMW ActiveE. According to the National Highway Traffic Safety Administration, about half of the all-electric 1 Series coupes currently in the hands of the public are being recalled for a potential problem that could leave the cars stranded.
With 700 ActiveE models running around the US, 360 of these cars have insufficient sealing between the electric motor and transmission, which could lead to premature wear to the connection between the two, which in turn could result in a loss of propulsion. BMW started notifying affected owners by phone earlier this month.
While no automaker wants a recall on its hands, it's much better for BMW to learn such a lesson now on the low-production, lease-only ActiveE ahead of the car's successor, the BMW i3, which is expected to be a much higher-volume EV. Scroll down for the official recall notification.