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BMW looking to save billions with cost cuts

BMW is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO Norbert Reithofer (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.
According to Automotive News Europe, Reithofer is none too pleased about costs at Mini and on the 1 Series, although neither AN nor its source story, from Germany's Manager Magazin, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.
What may happen, though, is that BMW attempts to trim 100 million euros ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper Muenchner Merkur. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.

BMW 3 Series eDrive plug-in hybrid spotted in development

BMW has shown its commitment to the development of hybrid and electric powertrains in recent years, with vehicles in its ActiveHybrid range, electrics like its BMW ActiveE and range-extended EVs like the i3 and i8. Plug-in hybrid-electric vehicles are clearly top-of-mind for the German automaker. We saw spy shots of the PHEV BMW X5 eDrive prototypes about a year ago, and now our shooters have come through with a 3 Series-bodied version of the technology, as well.
In addition to the obvious "Hybrid Test Vehicle" designation you see on the bodysides of this 3er, we also note that a second 'fuel cap' - presumably hiding the electric charge point - is in evidence. It's a fairly safe assumption that this 3 Series is making use of the same turbocharged four-cylinder engine and electric motor configuration that the X5 eDrive used. In the case of the X5, that meant a top electric-only speed of 75 miles per hour, with a range of just under 20 miles, and 0-62 mph in under 7 seconds. With considerably lighter, compact sedan bodywork clothing the PHEV drivetrain, we'd guess that the 3 Series eDrive could improve on each of those numbers.

BMW discussing supercar collaboration with McLaren

BMW is reportedly considering a new halo supercar. But rather than go it alone, word has it that the Bavarian automaker is discussing a potential partnership with McLaren to make the idea a reality. This according to Britain's Car magazine, which suggests that negotiations are well underway. The proposal would see the BMW supercar based on the same architecture that will to underpin Woking's P16 project that's set to replace current 650S. Rather than use the 3.8-liter twin-turbo V8 that McLaren developed together with Ricardo, the Bimmer version would use Munich's own engine: a 4.0-liter V8 with quad turbochargers – two conventional spools and two more electrically driven chargers. Their combined effect would net an expected 750 horsepower. Further differentiations on McLaren's carbon monocoque architecture for use in the BMW would include custom bodywork, aerodynamics, and interior fitments to include a unique instrument panel. Production, however, would be handled at the McLaren Production Centre in Woking, to the tune of several hundred units per year. The project would take the place of several aborted programs undertaken internally at BMW. One called for an entirely unique supercar developed in-house, referred to internally as the M100. When that project was aborted so that BMW could concentrate on the i sub-brand, BMW's own skunkworks shifted its focus to developing a more performance-focused version of the i8, known by some as the i8 CSi. When that project was canned as well, discussions with McLaren commenced. It wouldn't be the first time BMW would outsource development of its own supercar, or even the first time BMW would collaborate with McLaren on such a project. Initial development work on the original M1 in the 1970s was undertaken by Lamborghini before being taken in-house. And, of course, BMW provided the engine for the legendary McLaren F1. Meanwhile McLaren performed a similar function for Mercedes-Benz with the SLR, demonstrating Woking's experience in building flagship supercars for German automakers. This latest project could suffer the same fate as the M100 and i8 CSi programs. But if it is approved, it could yield both coupe and convertible versions, with the first slated to surface at the Frankfurt Motor Show in 2017 and reach dealerships in 2019.