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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.

2014 Mini John Cooper Works Countryman All4

The standard Mini Countryman is a bit of an odd duck against the backdrop of 'normal' small crossovers like the Mazda CX-5 and the Ford Escape, but I sort of get it. Apply the same winning Mini formula to a CUV, and you get a smaller-than-average entry in the segment, one that is far more entertaining to drive than the norm, more stylish inside and out and pretty expensive when cross-shopped. That list of qualities doesn't appeal to all crossover shoppers, sure, but it intrigues a big enough list that the Countryman has reason for being.
Now, add the expensive John Cooper Works package to the Countryman's already niche goodies list, and Mini starts to lose me. So, I'm getting the softer suspended, taller, generally less dynamically joyful version of the brand's core values, but now you're charging me at least $35,000 ($13k more expensive than the basic, front-drive Cooper Countryman and $7k more than the MSRP of the Cooper S All4 version)? What's that? You're going to make it look like a garish, tippy-toed tuner car in the process? Take my money.
Or, actually, let me keep it. I can swing with a lot of the weirdness that Mini has to offer, but this car pushed me past my limit.

Drive On The Left | The List #0033

When you've been driving on the right side of the road your whole life, driving on the left can be incredibly disorienting. In this episode of The List, hosts Jessi Combs and Patrick McIntyre brave the traffic-filled streets of London as they take in the sights in a Mini Cooper. "London is not a driving city. There are millions of people and millions of cars," said Patrick. "And the streets seem to have been laid out at random over the centuries." Even Jessi found herself battling old habits in the right-hand drive Mini. "I've already gone over to reach for the door twice to shift it," she said. Our hosts dig into the history behind the traffic swap on the other side of the pond as they attempt to check "Drive On The Left" off their List. Click here to find more episodes of The List Click here to learn more about our hosts, Jessi and Patrick MINI Coupe The List Videos Original Video right hand drive