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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.

New Bristol sports car will be called the Bullet

One of the great names in British carmaking history, Bristol, is coming back with a new sports car. It was first seen all camouflaged up at the Goodwood Festival of Speed just weeks ago, and now Bristol has announced the name the upcoming car will bear – Bullet. The concept name is Project Pinnacle, and to propel the vehicle, Bristol has chosen a 4.8-liter BMW V8. Power figures have not yet been revealed, but it is likely those will be disclosed at the car's official unveiling at the end of this month. It's been five years since Bristol last produced a car, the Fighter, which ceased to be in 2011. There never were that many Fighters produced – sources say only 13 cars made it off the production line. There were also plans to build a turbocharged version of the Fighter, but that never materialized; however, as the BMW V8 in the upcoming Bullet is a naturally aspirated unit, Bristol has said it will be the last non-turbo engine in a Bristol. The use of a BMW engine also neatly ties in with the first Bristol made, as the 1947 Bristol 400 used a BMW 328 powerplant. Some earlier Bristols have been crafted from aluminum, and the Bullet will be a step in a new direction, as the chassis is going to be carbon fiber. The carmaker told Autocar that the Bullet will be made available during the first quarter of next year. Related Video: News Source: AutocarImage Credit: Bristol Cars Plants/Manufacturing BMW Convertible

BMW recalling a grand total of three X3s over instrument panel defect

We've seen big recalls and we've seen small ones. Some involve millions of vehicles, and some - like the Infiniti Q50 recall on which we reported just the other day - involve just a couple dozen. But this has to be the smallest recall we've seen yet.
"Due to a production process error" in the BMW X3, states the National Highway Traffic Safety Administration in the notice below, "the team seam on the instrument panel was not manufactured correctly." Big friggin' whoop, you say? Well, NHTSA points out that it could hinder the deployment of the airbag and send fractures flying everywhere.
The problem was discovered in a select few examples of the 2013 BMW X3 - both xDrive 28i and 35i models - manufactured in the later part of February this year. And by "select few," we literally mean a few - as in three. Three examples are being recalled. If you happen to be one of those three owners, expect to hear from your local dealership.