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BMW ponders increase in i3 production capacity on early demand

The 2014 BMW i3 is not slated to hit US showrooms until the second quarter of next year, but the response BMW has received for the all-electric hatchback has been positive enough that the automaker is already considering boosting production capacity. Bloomberg Businessweek reports that more than 8,000 customers have reserved an i3 so far, which is high, especially considering that BMW only planned to sell 10,000 i3s total in 2014.
Talking to BMW CFO Friedrich Eichiner, the report says that if the demand holds for the i3, BMW would increase capacity accordingly. The i3 goes on sale next month in Germany before a global roll out in the US, China and Japan, and with a starting price of $41,350, it is priced slightly higher than current small plug-in vehicles offered in the US like the Chevy Volt, Ford Focus Electric and Toyota Prius Plug-in, though features more use of advanced, lightweight materials.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.

BMW debuts 435i ZHP edition coupe [UPDATE]

Performance enthusiasts enamored of the BMW 4 Series but not quite ready to step up to the M4 will be excited at the arrival of the new ZHP edition. Reviving a code last seen on a package for the E46 series a decade ago, the 2016 BMW 435i ZHP Edition boasts a series of performance upgrades aimed not only at "improved optics and aerodynamics; it is also notably quicker with more precise handling." The special 4 Series packs a series of BMW M Performance accessories to give it a more aggressive attitude, including a new Track Handling Package, M Sport Package, limited slip differential and a range of M Performance parts. The Track Handling Package alone includes 18-inch alloys, M Sport Brakes with four-piston calipers up front and two pistons in the back and incorporates the Active M Suspension with variable dampers and steering. With revised software and a new air intake, the M Performance Engine Kit kicks in an extra 35 horsepower for a total of 335 hp and either 32 more pound-feet (with the automatic transmission) for a total of 332 lb-ft or a 17-lb-ft boost (with the manual) for a total of 317 lb-ft. That's enough to drop 0.2 seconds off the 435i's 0-60 time and 0.5 seconds off the run from 50 miles per hour to 75. BMW also promises better accelerator response and engine note. There's a sport exhaust that sheds 8.8 pounds of weight, a full carbon-fiber aero kit and visual enhancements inside, out and under the hood. The German automaker will only be offering 100 examples of the enhanced coupe starting in July, with pricing to be announced closer to the launch date. UPDATE: Of course, if you miss out on one of these special editions, you can always spec out your own from the M catalog with parts installed at BMW's Vehicle Distribution Center. And, as BMW points out in correspondence with Autoblog, you could even order one up with all-wheel drive and in convertible or four-door Gran Coupe body-styles if that's more your pace. Related Video: BMW UNVEILS THE SPECIAL EDITION BMW 435i ZHP COUPE Woodcliff Lake, NJ – May 19, 2015... Paying tribute to the iconic ZHP Performance Package, BMW today released details for a 2016 BMW 435i ZHP Coupe Edition.