2019 Bmw X5 Xdrive40i on 2040-cars

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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.

Feds greenlight BMW X5 diesel sales for 2016 [UPDATE]

Update: The EPA also confirmed that the 2016 X5 diesel passed the tests in a statement: "EPA and the California Air Resources Board certified BMW's 2016 diesel X5. EPA is performing additional screening when it conducts confirmatory emissions tests before issuing a certificate. Our screening tests found no evidence of a defeat device in the 2016 BMW X5, concluding our certification review." The 2016 BMW X5 xDrive35d is the latest diesel model to pass rigorous emissions tests by the Environmental Protection Agency and prove that it doesn't circumvent regulations with a defeat device. The luxury SUV can now go on sale to customers, and BMW spokesman Hector Arellano-Belloc confirms to Autoblog the first of them should arrive at dealers around late January. The automaker previously delayed production of the new model at the Spartanburg plant until the EPA completed certification. Following Volkswagen's emissions cheating, the EPA, California Air Resources Board, and Environment Canada began stricter testing for diesel vehicles to ensure that they met regulations. The first models to get the additional scrutiny were the 2016 Chevrolet Colorado and GMC Canyon with the Duramax engine, and they passed with no problems. According to Reuters, the X5 diesel was the only other non-VW from the 2016 model year that the agencies needed to certify with this more rigorous evaluation. The 2016 X5 xDrive 35d starts at $58,695 after the $995 destination charge. A 3.0-liter six-cylinder engine sends 255 horsepower and 413 pound-feet of torque through an eight-speed automatic to the all-wheel drive system. BMW claims that the vehicle can reach 60 miles per hour in 6.5 seconds, and the 2015 model carries an EPA fuel economy rating of 24 miles per gallon city, 31 mpg highway, and 27 mpg combined. Related Video:

Airbag recall widens to include BMW, Chrysler, Ford and Toyota

The recall of faulty airbag inflators supplied by Takata has exploded today to grow to seven automakers. In most cases, only models in certain high-humidity regions were affected because the National Highway Traffic Safety Administration found in its investigation that moisture played a roll in determining whether there would be a problem. However, some companies opted for national campaigns. The exact number of affected models for these campaigns isn't yet known at this time.
BMW is recalling an undisclosed number of 325i, 325Xi, 330i and 330Xi models from the 2001 through 2005 model years and the 2001-2006 model year versions of the 325Ci and 330Ci for the driver side and passenger side inflators. Only vehicles currently registered in Florida, Puerto Rico, Hawaii and the US Virgin Islands are covered under this recall.
Neither Chrysler's filing with NHTSA nor its press release list the specific models affected, but a company spokesperson told Autoblog that at this time it only covers the driver and passenger side inflators for the 2006 Dodge Charger in Florida, Puerto Rico, Hawaii and the US Virgin Islands