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BMW warns profits will fall, plans $13.6 billion in cost-cutting

FRANKFURT, Germany — BMW said Wednesday that profits in 2019 will be "well below" last year's, and it will cut 12 billion euros ($13.6 billion) in costs by the end of 2022 to offset spending on new technology. The company said profits would be eroded by higher raw materials prices, the costs of compliance with tougher emissions requirements and unfavorable shifts in currency exchange rates. The Munich-based automaker also faces increased uncertainty due to international trade conflicts that could lead to higher tariffs. "Depending on how conditions develop, our guidance may be subject to additional risks; in particular, the risk of a no-deal Brexit and ongoing developments in international trade policy," said Chief Financial Officer Nicolas Peter. The company forecast a profit margin of 6 to 8 percent for its automotive business, short of the long-term strategic target of 8 to 10 percent, which it said still "remains the ambition" for the company if given "a stable business environment." BMW said it had no plans for layoffs even as it outlined cost saving measures that include dropping half of its engine variants as it seeks to reduce product complexity. The BMW, Mini and Rolls-Royce brands are to get a single sales division. Peter said that given the headwinds to earnings, "we began to introduce countermeasures at an early stage and have taken a number of far-reaching decisions." The company said the measures were needed "to offset the ongoing high level of upfront expenditure required to embrace the mobility of the future." Automakers around the world have faced heavy up-front costs for technology expected to change how people get from one place to another in the next decade. Those include electric cars and renting cars through smartphone apps. Yet the returns from such investments remain uncertain and auto companies face competition from tech firms such as Uber and Waymo. BMW made 7.2 billion euros ($8.2 billion) in net profit last year, down 17 percent from 2017, when it booked a gain of $1 billion from U.S. tax changes. The company faced headwinds from increased tariffs on vehicles exported to China from the United States. It also suffered from turmoil on the German auto market when companies faced bottlenecks getting cars certified for new emissions rules. BMW faces uncertainty from U.S.-China trade tensions that could result in new tariffs if talks do not result in an agreement. U.S.

BMW teases 2 Series Coupe ahead of October 25 debut

Although it was finally just confirmed that the last of the BMW 1 Series coupes and convertibles went out of production months ago, we won't have to wait very long to see this model's replacement, the all-new 2 Series. BMW released a teaser video for its new coupe today and also announced that the 2 Series will officially debut on October 25.
We may still have to wait until the Detroit Auto Show to see it up close and in person, even though both the Los Angeles Auto Show and Tokyo Motor Show are nearly upon us. Either way, it's not clear when the 2 Series will roll into dealerships. Considering we've already seen the coupe sitting out mostly undisguised for a photo shoot, there really isn't much to see in terms of styling of the car in this sun-drenched, dirt-slinging teaser. BMW does say that this is the first trailer ahead of the 2 Series' unveiling, so there are likely to be more to follow the video seen below.

BMW 2 Series Active Tourer corners surprisingly flat on 'Ring

With seven seats and front-wheel drive, you might not expect the upcoming long-wheelbase version of the BMW 2 Series Active Tourer to live up to the Ultimate Driving Machine reputation that BMW has fostered over the years. But the latest spy clip from the Nürburgring suggests otherwise.
The Bavarian automaker has apparently been testing its new people mover on the Nordschleife, getting it ready to join the growing 2 Series family. And though it's wearing heavy camouflage, we can clearly see from the video below that it's cornering impressively flat - which bodes well for those who'll need to transport their expanding family but aren't prepared to give up on handling.