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British automakers take costly precautions as Brexit 'no deal' fears grow
Wed, Sep 26 2018LONDON — Carmakers in Britain have triggered some Brexit contingency plans, such as certifying models in the EU, and are working on redrawing production schedules and stockpiling more parts to defend against any loss of unfettered trade after Brexit. The moves are aimed at ensuring plants, which rely on the just-in-time delivery of tens of thousands of components, can keep operating after Brexit on March 29, but will add costs and bureaucracy which could risk their long-term viability. London and Brussels hope to agree a deal by the end of the year to avoid tariffs and trade barriers, but Prime Minister Theresa May's proposals have been criticized by both Brexiteers, who want a cleaner break from the bloc, and the European Union. McLaren Automotive is looking at having its cars certified by both a British and an EU agency to smooth sales. It is also planning to stockpile critical components and change shipments into the EU around Brexit if there is disruption. "I will sell a little more in January and February and plan to pick the volume up in May and give us a leaner period through the change point," Chief Executive Mike Flewitt told Reuters. BMW, which said last week it would move the annual summer-time shutdown of its British Mini plant next year to April, is looking for lorry parking areas and warehousing on both sides of the channel and is seeking to sign contracts to lease certain locations, a spokesman said. It is also investing in IT systems to handle any new red tape as carmakers estimate tens of thousands of new documents could be needed if tariffs and customs are imposed. The German carmaker's Brexit plans are costing millions of pounds, a source familiar with the matter told Reuters. But Honda, which builds 10 percent of Britain's 1.67 million cars at its Swindon plant in southern England, is not in the market to buy "huge amounts of warehousing space," its Europe boss Ian Howells told Reuters. "It's been a very precise calculation or estimation of what components need to be brought in," he said, adding the firm could also alter its output to sell more into the EU at the start of next year. Waste of money? Many British carmakers have also asked suppliers to look into how they would handle delays at ports, executives told Reuters, as thousands of parts, engines and finished models move between Britain and the continent every day.
The BMW M760i xDrive isn't as cool as the Alpina B7
Thu, Feb 11 2016Earlier this week, BMW released what we assumed was the new pinnacle of the 7 Series range: the Alpina B7 xDrive. But then we received information about the car you see here, which still isn't a full M7, but uses the name M760i xDrive. What we're trying to figure out is, why would you get the M760i over the brand-new Alpina? Mechanically, and as far as we can tell, the only real difference between the two cars is under the hood. The M760i uses a twin-turbo 6.6-liter V12 capable of an estimated 600 horsepower at 5,500 rpm and 590 pound-feet of torque at 1,500 rpm. Thing is, the Alpina B7 also makes 600 hp and 590 lb-ft, albeit at higher points in the rev range, from a twin-turbo 4.4-liter V8. Both cars use all-wheel drive. Both cars have eight-speed automatic transmissions. But while the M760i does the 0-62 run in 3.9 seconds and tops out at an electronically limited 155 miles per hour, the Alpina does 0-60 in 3.6 seconds and runs to an unrestricted 193 mph. For all intents and purposes, the little details about interior refinement and technology are basically the same. It's a top-of-the-line 7 Series, so no matter if you're doing Alpina or M760i, you're getting the best of the best. To us, though, the Alpina represents a package that's more unique. It's certainly a bit flashier, what with its Alpina-correct 21-inch wheels, blue paint, and body kit. But put the two cars next to each other on the street and ask an unknowing pedestrian which one is top dog, and we're willing to bet they'll say Alpina every time. There's no word on pricing for either version of the 7 Series, but we expect they'll be close. The M760's engine will be more expensive, but all those Alpina upgrades certainly won't come cheap. We'll know more closer to the launch of both later this year and in early 2017. For now, read more about the M760i in the press blast below. Related Video: The All-New 2017 BMW M760i xDrive. - Superb performance and exceptional luxury combined. - The allure of the most powerful BMW V12 production engine. - First BMW 7 Series M Performance Automobile. Today, BMW announced the all-new BMW M760i xDrive, the latest addition to the BMW M Performance line-up. With the introduction of the 2017 BMW M760i xDrive, the sixth generation BMW 7 Series adds the first M Performance TwinPower Turbo 12-cylinder to its offerings.
How tariffs in China could cause a meltdown in the American South
Sun, Aug 25 2019While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.