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What does the open patents deal mean for Tesla ... and BMW?

Gift to the world or trade bait? Tesla Motors announced this week it would open its patents for other automakers to use. That has analysts guessing whether the California-based electric-vehicle maker is looking to either swap trade secrets with other automakers or to expand the proverbial pie that represents the plug-in vehicle market. For its part, Tesla says the answer is B. BMW, which is establishing its i sub-brand of plug-in vehicles, would be a natural collaborator with Tesla, Forbes says. In fact, executives from the two companies met in Europe this week. Details were not released, but a BMW spokesman said, "Both companies are strongly committed to the success of electromobility and discussed how to further strengthen the development of electromobility on an international level." While Tesla brings battery technology to the table, BMW offers its carbon-fiber advancements that lighten vehicle-body weight. Those advancements are key to range-extending efforts and could do wonders for Tesla on its journey to help spur technology for the sake of getting more of the general public to accept plug-in technology as a viable first-car option. Then again, Forbes says Tesla, whose investors include Mercedes-Benz parent Daimler and Toyota, may be keeping its best technologies to itself by not patenting certain advancements at all. What's in Tesla's patent pool? uAutoInsurance analyzed Tesla's 249 patents and found that 104 of them related to battery technology, while 28 pertained to recharging activity, which wasn't surprising (about a quarter of those 249 patents couldn't readily be categorized). Tesla also has nine patents related to sunroof technology. The company is based in California, after all.

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.

See the BMW 3 Series morph through history in this animation

The BMW 3 Series is now over 40 years old, and the folks over at Donut Media have put together a very cool animation to commemorate its four decades on the road. The minute-and-a-half-long video shows some of the highlights of the 3er's career, with the side view morphing from the super-basic 1975 E21 316 to the Group 5 racecar based on the same chassis, and up to the current F80-body M3 in Austin Yellow, with stops along the way highlighting different body styles from each of the car's six generations. The color names are at least as interesting as the little info callouts scattered around the video, and the sound bites of racing commentary are a definite treat, so be sure to have your speakers on. Another plus is that you can halt the video between morphing and create some very weird looking BMWs. As a bonus, the creators offer posters of the iconic German cars. It's another clip in a series from Donut Media that brought us an earlier 911 evolution video, so be sure to watch that one as well for a quick automotive history recap. Donut Media is also asking for suggestions on what to morph next. You can leave your ideas in the YouTube comments. Related Video: News Source: Donut MediaImage Credit: Donut Media Auto News BMW Automotive History Racing Vehicles Classics Videos