2011 Bmw X5 Xdrive35d on 2040-cars

Auto blog

BMW, Toyota warn about Chinese market slowing down

BMW and Toyota are the latest automakers to become concerned about the closing throttle on the once rapidly accelerating vehicle market in China. There might be drastic effects on their ledgers at the end of the year. With the Chinese stock market no longer looking so healthy, the people just aren't buying as many new cars as in the past. Things got really bad in June after the first drop in deliveries in two years. BMW has already reduced Chinese production by 16,000 units so far this year. Despite the slowdown, the company has kept a brave face. "We experience that volatility in all emerging markets," BMW CEO Harald Krueger said in a conference call, according to Automotive News. The problem for Toyota is a bit stranger. Through July, the automaker's Chinese deliveries were actually up 12 percent. However, the gain was offset by falling sales prices. "This is making our business in China quite difficult. The business environment is getting tougher," Toyota Managing Officer Tetsuya Otake said, Automotive News reported. Much of the weakness in China has come in the middle part of the year, and from January through June deliveries were still up 8.4 percent. This means the effects haven't hit the financial results of some automakers too hard quite yet. In the second quarter, General Motors referenced the "challenging conditions" there but still posted a growing net income of $1.1 billion. Despite falling global sales, Toyota managed record income for the quarter, too.

2016 BMW M2 First Drive

Don't skip down to the conclusions, because I'll save you the trouble and spell it out for you right here. The 2016 BMW M2 is superb. Lay out your criteria for a contemporary sport coupe. Then check all the boxes. There are gripes. We've gotten good at uncovering the little issues in an age where the difference between the best and worst car in a class is smaller than ever. But they're that: little. It's a small price to pay for a vehicle that delivers so much more to the driver than the M235i – engagement, performance, pleasure – that it seems a bargain at $52,695 to start. Moreover, it's the right-sized M car we've wanted since the M4 burst its chrysalis and turned into an extra-large, if not overweight, butterfly. BMW had us out to Monterey to sample two M2s: a 7-speed DCT on Mazda Raceway Laguna Seca, and a six-speed manual on the fog-kissed Pacific Coast Highway. The formula here is old-school – thank heavens. It's a compact sport coupe with swollen wheel arches and a hot-rodded inline-six. The proportions are classic: longish hood, short rear deck, reasonably airy greenhouse in the tradition of sporting BMWs, and plenty of meat on the sticky tires. Long Beach Blue paint provides depth to the sheetmetal scalloping and contrast to the fender flares – and the M2 looked great in this bold color. I can't say the same for the less-exciting grey example parked in the hospitality tent. Like most modern turbocharged BMWs, the torque curve is fatter than an In-N-Out Double Double, Animal Style. The overall rightness of the proportions compensates for the more polarizing details. The dimples in the rear bumper, the "scoops" in the lower secondary air inlets, the obligatory fender vent (which is at least small). They're all intended to communicate aggressive sportiness, and succeed to varying degrees, but it's just jewelry. Inside, BMW's excised some of the cheapness that plagued the 2 Series' predecessors. The blue contrasting stitching looks great, the sport steering wheel is perfectly sized, and the carbon-fiber patterned accents at least provide a little texture to break up an unapologetically black interior. On the other hand, the door pulls are not only cheap-looking, but also so large they're impossible to ignore. It's a baffling misstep in an otherwise simple and classy interior. As a quick aside, the HUD is clear and functional – not a new feature for BMWs, but worth noting.

Will global automakers drop local JV partners if China's government says they can?

Chinese economic policies could be in for a big change, as President Xi Jinping pushes the communist country to open its domestic markets even further. That could mean big things for the auto industry, especially when it comes to the country's far-reaching joint-venture system.
According to Chinese law, foreign automakers may only maintain a fifty-fifty partnership with their domestic counterparts. But with Jinping's push for openness leading to potential free-trade deals, that policy could be relaxed (or eradicated all together) in short order. What's an automaker to do?
Well, in BMW's case, stay the course. Automotive News Europe reports that, despite the grumblings about the JV policy changes, the German manufacturer has resigned its agreement with Brilliance through 2028. This is made doubly remarkable by the fact that BMW signed the extension over three years before it was set to expire.