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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.

2014 BMW X5 recalled over faulty child-safety locks

BMW is set to recall some 6,400 of its new-for-2014 X5 SUVs built between December 12, 2013 and March 10, 2014 due to concerns that the child safety locks, if set, might deactivate without warning. The problem affects only those vehicles with the automatic soft-closing option.
According to the bulletin issued by the National Highway Traffic Safety Administration, the lock mechanism on the rear doors "may not have been manufactured to correct tolerances," meaning the safety locks could disengage with a simple pull of the door handle. Basically, with a pair of tugs, the rear doors could be opened from the inside, regardless of child safety locks.
BMW is in the process of notifying owners of affected vehicles. Any necessary repairs will be conducted free of charge. Take a look below for the official press release from NHTSA.

2016 BMW X5 xDrive40e Review [w/video]

BMW is no stranger to electrification. The company put the world on notice with the launch of its innovative i sub-brand. But the lessons learned from the i3 and i8 aren't limited to these small-volume cars. The more mainstream X5 xDrive40e impresses with lessons learned from i, all without compromising the SUV's character. The combination of a 2.0-liter, turbocharged four-cylinder engine with an electric motor is good for 308 overall horsepower and 302 pound-feet of torque. Sure, 240 hp and 260 lb-ft come from the four-cylinder engine alone, but the electric motor – integrated within the ZF eight-speed automatic transmission's housing – chips in a maximum of 111 hp and 184 lb-ft of torque. The 9.2-kilowatt-hour lithium-ion battery can sock away enough electricity to drive up to 14 miles on a single charge and will recharge at your average 110-volt socket in about seven hours. Of course, the battery pack and electric motor are a big weight penalty. At 5,220 pounds, the xDrive40e is 430 pounds heavier than the standard xDrive35i. Still, the gas-electric powertrain hustles this husky X5 40e to 60 miles per hour in just 6.5 seconds, less than half a second slower than the 35i. The stopwatch figures are complemented by the best fuel economy of any gas-powered X5, at 56 miles per gallon equivalent and 24 mpg combined. Only the diesel X5 xDrive35d is more efficient, at 27 mpg. But achieving top fuel economy in the 40e isn't as simple as going easy on the throttle. Perhaps more than any vehicle we've tested recently, understanding how all the X5's systems work together is crucial to eking out the most mpgs. The xDrive40e's Drive Dynamics Control will be familiar to anyone that's driven a recent BMW. Eco Pro, Comfort (the default mode), and Sport make the same adjustments to the throttle response, steering weight, and dynamic damper firmness as they do in a standard X5. But in the xDrive40e, they also impact the way energy is recaptured. Comfort/Save offers the best blend of fuel efficiency while achieving maximum energy recapture. Sport mode's aggressive energy recovery is the fastest way to recharge the battery on the go. When it's working, there's a sensation similar to gently stepping on the brakes, though you actually aren't doing anything – this is a familiar experience to the way most EVs use regenerative braking. Comfort mode reduces this effect, and in turn how much energy is recaptured.