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BMW profit of $2.7B is down as automaker invests to keep luxury lead

Despite selling 6.6-percent more vehicles - a record by volume - and posting higher revenues in the second quarter of 2013, BMW Group's profit of 2.07 million euros ($2.75 billion) is down 8.8 percent from last year. Investments in new technology (e.g. the new i3) and personnel, in addition to a competitive market, are to blame, BMW states. But the automaker remains committed to its fiscal targets for 2013, which, Chairman of the Board of Management of BMW AG, Norbert Reithofer, says will be "on a similar scale to 2012."
The BMW brand's sales performance in the first half of the year, which increased by 7.7 percent to 804,258 vehicles delivered, was good enough for it to maintain its lead in the luxury market, narrowly beating Audi, which delivered 780,510 vehicles, Automotive News reports. Mercedes-Benz delivered 694,433 vehicles to cement third place.

Mini Clubman to get the 'Works,' four-door Hardtop not so much

Performance sub-brands are expanding faster than leftover marshmallow Peeps in a microwave. And Mini's John Cooper Works line is not likely to be an exception. Mini's stand at the New York Auto Show was somewhat low-key, with the debut of the Clubman All4 all-wheel-drive variant on one end and the expected John Cooper Works Convertible on the other. And for the foreseeable future, the Mini lineup will change through redesigns of existing models and the introduction of more derivatives – like a John Cooper Works version of the new Clubman. At least that's what some of Mini's product guys indicated. "The Works is always our top model. John Cooper Works is not just limited to small cars, it's also for compact cars," said Ralph Mahler, Mini's head product manager, in an interview with Autoblog at the New York Auto Show. "Therefore, I wouldn't see anything against bringing the Works to the Clubman. I think it would be a perfect match." Though one was offered in the last generation, a Works model may seem at odds with the new Clubman's mission, as the company has spent considerable effort pitching it as the grown-up Mini, something to rival premium-branded compacts. Yet Mahler sees a possible Works Clubman as the ultimate in the lineup and an exclusive model, especially since he said take rate for the rest of the Works Minis is around 5 percent. Patrick McKenna, Head of Product Planning at Mini USA, said that since the Clubman went on sale early this year, ordering has included mostly highly optioned models, and customers are notably cross-shopping the Audi A3. Loaded up, a Clubman Cooper S All4 pushes past the $45,000 mark. Currently, the most powerful Cooper S produces 189 horsepower from its 2.0-liter turbo four. That's more power than a front-drive A3 1.8T, but less than the A3 2.0T Quattro – and way less than a cheaper Volkswagen Golf GTI. Consider that the engine in the just-released John Cooper Works Convertible produces 30 more horses than the one in the Cooper S and a Works Clubman starts to make more sense. Strangely, the four-door Mini Hardtop, released last year, doesn't appear to be destined for the Works treatment. McKenna said the four-door will continue to offer special appearance packages that offer Works-like touches and offer dealer-installed accessories such as exhausts and horsepower increases.

Mini to skip 2016 Detroit, Geneva Auto Shows

Following a report from the team at MotoringFile, rumors have been swirling that Mini will join Jaguar Land Rover and abandon this year's North American International Auto Show. We can officially confirm that the BMW-owned brand will be passing on not only next month's Detroit show, but also Europe's flagship Geneva Motor Show. It all has to do with positioning. See, auto shows can be two things – they can be news events, or they can be consumer events. On the consumer side of the equation, we have the sprawling Chicago Auto Show, while both Geneva and Detroit lean heavily towards being a source of breaking news. Based on Mini's official statement, it looks like it was that positioning that led the brand to pass on two of the world's most important auto shows. "The BMW Group confirms it has decided Mini will not be represented at the shows in Detroit and Geneva. This decision reflects Mini's new product and brand strategy, which was presented to the public on June 24, 2015," Mini USA spokesperson Mariella Kapsaskis told Autoblog in an official statement. "Part of the new brand strategy is focusing on selected auto shows and an increased engagement with events that increase MINI's access to other relevant target groups." Max Muncey, PR manager for NAIAS, corroborated the statement from Mini. "The North American International Auto Show is one of the few shows to carry the international moniker. As such, we focus on making news with global media outlets rather than serving as a consumer show," Muncey told Autoblog. "Mini's decision reflects this positioning." According to Muncey, Detroit hosted 5,000 journalists last year, while its media coverage was roughly double that of LA, where Mini held the world debut for the new Convertible and the US debut for the Clubman last month. In our opinion, with both those debuts out of the way and not much else coming down the pipe in the near future, prioritizing auto shows based on consumer attendance rather than media attendance seems like a sound strategy. Here's hoping Mini returns to the frigid wastes of Detroit for the 2017 installment of the North American International Auto Show.