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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.

The 2017 Alpina B7 xDrive isn't as cool as the BMW M760i

Steve Ewing is good people, but when it comes to big BMWs, he talks nonsense. He argues, incorrectly, that the new Alpina B7 is somehow cooler than the new M760i. Here's why he's wrong. No surprise, but the bulk of the pro-M760i argument comes from under the hood. Yes, both cars produce 600 horsepower and 590 pound-feet of torque, but it's where the power comes from that really matters. The M760i's power is just much more accessible, with peak torque coming in at just 1,500 rpm, while the Alpina makes owners wait until 3,000 rpm for max twist (a fact Ewing glosses over). The V12 also offers up all 600 horsepower at 5,500 rpm, 250 rpm earlier. Sure, the Alpina is 0.3 seconds faster to 60 miles per hour – it does the deed in 3.6 seconds to the M760's 3.9 seconds – but it relies on a tweaked transmission setup to do it. Not only that, but big automakers like BMW are usually quite conservative about performance figures, so it's still a bit early to hand a medal to the aftermarket. Here's the other thing about the engines – Nigel Tufnel would prefer the M760i. See, the Alpina has a 4.4-liter, twin-turbo V8, but the M760i has a 6.6-liter, twin-turbo V12. To paraphrase Tufnel, "This one has a V12." We rest our case. Other changes between the two cars are largely in the eye of the beholder – we can talk about the transmission, suspension, and xDrive changes until we're blue in the face, but we simply don't have enough information about the two setups to make substantive arguments – some people might prefer the subtler styling of the M760i. We're not going to blame anyone for liking the more aggressive look of the Alpina, with its big, quad-tipped exhaust, meaty front splitter, or aggressive side sills. And those 21-inch Alpina wheels? Easily the coolest styling detail. You can get a closer look at them, and the Alpina's other changes, in our live gallery from the floor of the Geneva Motor Show. Related Video: Power, Dynamics and Luxury combined for class-leading performance and a superior driving experience – the all-new 2017 BMW ALPINA B7 xDrive. - Unique combination of high-performance drivetrain with 600 bHP and xDrive all-wheel drive system provide a 0-60 mph acceleration time of just 3.6 seconds. - Most advanced suspension and chassis technology with ALPINA calibration including for the first time Integral Active Steering for ultimate dynamics and comfort.

2014 BMW 4 Series Convertible [w/video]

Here it is, the fifth generation of BMW's 3 Series Convertible - only this one begins with a "4," having been rechristened as a droptop version of the new 4 Series Coupe. With thirty years of work on this same recipe and having gotten it so right for much of that time, the Munich compact premium convertible has been a WYSIWYG affair for decades: once you saw its sedan paradigm, you knew what it was going to look like in roofless two-door form, and what you saw is exactly what you got.
It is ridiculous to think that BMW would choose this new model and its new nomenclature to muck things up. The new car has, though, gotten larger and roomier, and even though it's now part of the racier coupe division within the company's compact line, it has gotten more, shall we say, mature. Driving even further away from the days when handsomely tipped bartenders could work their way into one, The Ultimate Tanning Machine had shed even more elan, going instead for elegance and an attitude befitting its $49,675 starting price (including $925 for destination).
It strikes a few odd notes, but what it does best, it still does better than anything else out there in its price range.