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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.

Mini celebrates 60 years of Cooper with Anniversary Edition Hatch

Sir Alec Issigonis never seriously envisioned the original Mini as a performance car. It was a cheap and cheerful econobox developed as an alternative to the bubble cars that were wildly popular in post-WWII England. Race car engineer John Cooper played a significant role in revealing the Mini's sporty side, and the BMW-owned firm is celebrating the collaboration's 60th anniversary with a limited-edition variant of the Hatch that will be sold globally. Aptly named Anniversary Edition, the commemorative hatchback is available in British Racing Green, Midnight Black or Rebel Green (depending on the version). Regardless of the chosen paint color, the light bezels, the door mirror caps, the door handles and the roof are painted white, while most of the other exterior trim pieces are black. The number "74" appears on the hood and on the doors; it was chosen as a reference to the original Mini, which wore the same number when it earned its first win in a major race. Red accents add a finishing touch to the look. Open the door, and you'll spot edition-specific door sill plates with a Cooper logo. The same design appears on the three-spoke steering wheel, and there's a red ring on the passenger side of the dashboard that's a tribute to the original John Cooper logo. The signatures of John, Mike and Charlie Cooper appear next to the instrument cluster. Mini is not making any major mechanical changes to the Anniversary Edition. The package can be ordered with the standard Cooper, the hotter Cooper S or the spicy John Cooper Works model. In its most powerful configuration, the Hatch offers a turbocharged, 2.0-liter four-cylinder engine that develops 228 horsepower. For context, the original Mini Cooper was powered by a 1.0-liter four-cylinder tuned to develop about 55 horsepower. It could reach a top speed of around 80 mph, and it gained disc brakes (the standard Mini initially settled for drums on both axles).  Only 740 units of the Anniversary Edition Hatch will be built globally. Pricing information hasn't been announced. And, while we know the model is America-bound, there's no word yet on how many will be sent to our shores. We've reached out to the brand, and we'll update this story if we learn more. Cooper's pre-Cooper models Mini launched its first Cooper-tuned model in September 1961, but the collaboration started earlier.

Major Alexa deal will bring Amazon services into more cars

Amazon and its personal assistance service Alexa are partnering with HERE Technologies to create a new connected mobility service powerhouse. Alexa will integrate with HERE's navigation and location services to offer what the two companies are calling a "true voice-first-navigation experience." Alexa will come pre-integrated with HERE navigation on-demand, which the automakers can then enable, which should help cut down on development time. One of the biggest features from this partnership is how directions could be offered and delivered using HERE's Open Location Platform (OLP). Currently, the OLP uses data from several car manufacturers to provide insights into real-time location and traffic. But on Alexa, this could be used to provide directional context. For example, Alexa could say, "Turn right after [such-and-such a building]" rather than just, "Turn right." Amazon has been testing the automotive waters throughout the past decade. Its home-based Alexa-enabled devices are already offered with connections to several manufacturers. To various degrees of integration, it can already pair with Ford, Genesis, Toyota, Lexus, Hyundai and BMW vehicles. At the end of 2018, Amazon took things a step further when it introduced the Echo Auto, a Bluetooth-connected Alexa assistant device that can be physically kept in a car. Currently only available by invitation (its production and distribution have been delayed), the $25 device is essentially a voice service that works together with smartphones and connects to a car's speakers. Users can command it to do a variety of things, including playing music, setting navigation, opening the garage door, finding local stores, making calls, setting reminders, and thousands of other "skills." According to The Verge, nearly 1 million people have already ordered the device. Some (well, probably few) may know HERE Technologies from its maps on Windows Phones. We all know how that turned out, though. Today, HERE has expanded into a multi-function suite that is available in multiple mediums, including many automotive applications. HERE Automotive's connected vehicle services include real-time traffic, parking, weather, fuel prices, hazard warnings, traffic sign integration, and even EV charging stations. These all incorporate and extend the use of HERE's location and tracking programming. HERE is already partnered with BMW, Audi, Daimler, Intel, Mobileye, NVIDIA, and has investments from Bosch, Continental and Pioneer.