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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.

Future Mini JCW models likely to be electrified

High-performance Mini Coopers need to be small, nimble, and relatively quick. One thing they don't necessarily need to be, according to the company's U.S. leadership, is gasoline-powered.  In an interview with Motor Authority, Mini USA Vice President Mike Peyton said that electrification is on the table for the range-topping John Cooper Works variants, which have traditionally been powered by a high-output turbocharged engine. The latest and greatest in the lineup, the 2020 Mini John Cooper Works GP, takes the formula to a new extreme, pairing a 301-horsepower mill with out-of-this-world aero. Peyton says that powertrains don't necessarily have to sound or feel the way traditionalists expect in order to be fun. It certainly doesn't have to feel that way in order to be fast; Tesla drivers can attest to that, as can those who have been fortunate enough to pilot some of the latest electrified hypercars.  He also acknowledged that while the future may be electric, that future is still a ways off. Mini is still waiting for advances in battery technology that will allow its performance models to deliver on other key expectations — namely handling. Minis are expected to be, well, miniature, and the additional weight of a current-generation, high-capacity battery is antithetical to that formula.  The take-away? The future of Mini performance is electric, but that future is still distant. So while the Mini Cooper SE and Mini E Countryman plug-in hybrid may give us a taste of Mini's approach to electrification, it could be some time before we see the company's highest-performance variants dabble in same space. 

Mini blows up over women applying makeup in cars

Distracted driving is a very real problem. From drivers with phones dangling from their ears to those constantly adjusting the stereo or dealing with rowdy children in the back seat, anything that diverts attention away from the act of driving is a potential danger. And yes, that would indeed include applying makeup while driving.
Publicis, the advertising agency used by Mini in Mexico, came up with an inventive (or offensive, depending on your point of view) way of reminding female drivers "that there's a time and place for everything." And while we're not quite sure of the veracity of the statistics cited in the video below, or even the necessity of its production in general, perhaps we'll just take it as a reminder to pay attention while driving... no matter what else happens to be on our minds. Or faces, as it were.
Scroll down below for the explosive demonstration.