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BMW says SUVs killed the sports car market

In many ways, we're living in a golden age of automotive performance. After all, it's possible to show up at a Dodge dealer, hand over about $60,000 and storm away with a 707-horsepower Challenger Hellcat. Or for those who prefer a touch more luxury, the BMW M4, Mercedes-AMG C63 and latest Cadillac ATS-V offer between 425 and 503 horsepower, depending on your pick, with a bit more poshness. However, none of these powerful vehicles fit the classic definition of a two-place, droptop sports car, and according BMW head of sales Ian Robertson, that's because the segment is very much in the doldrums.
According to Robertson, two factors seriously wounded the classic sports car market. First, the global economic crisis of a few years ago put a serious hurt on sales, according to Bloomberg. Further worsening the situation, the boom in popularity of luxury SUVs and crossovers in the past few years hasn't allowed for much recovery. Even car-hungry China hasn't helped much because of the smog in many cities and preference among some of the very rich there to be chauffeured.
Combined, Audi TT, BMW Z4 and Mercedes-Benz SLK sales peaked around 114,000 units a year in 2007, but they are only expected to reach 72,000 annually by the end of the decade. Robertson is pretty pessimistic about the market's comeback too. "Post-2008, it just collapsed. I'm not so sure it'll ever fully recover," he said to Bloomberg.

2020 Acura NSX leads this month's list of discounts

With its 573-horsepower hybrid powertrain and 0-60 time of 2.9 seconds, there's no doubt that the Acura NSX is an impressive machine. As its production numbers and pricing adjustments attest, however, it's not a big seller. And this month, Acura's high-end coupe has a larger monetary discount than any other vehicle in America. Buyers of the 2020 Acura NSX are scoring an average cut of $19,659 off the car's $159,530 sticker price. That equals a 12.3% savings for an average transaction price of $139,871. That's still a hefty chunk of change, but it's a reasonable sum for a vehicle with the NSX's performance chops. The next two vehicles in order of largest discounts follow the same luxury performance coupe trend. The Audi R8 is a much pricier vehicle than the NSX, which means its $16,146 discount only represents 8% off its average $200,086 sticker, but we doubt buyers are complaining. Next up is the BMW M8, a vehicle that has been at or near the top of this list more than once. The M8's average discount of $15,403 represents a 10.4% savings off its $148,880 retail price. Interestingly, that puts the M8 and NSX within a few thousand dollars of each other. For a look at the best new car deals in America based on the percentage discount off their suggested asking prices, check out our monthly recap here. And when you're ready to buy, click here for the Autoblog Smart Buy program, which brings you a hassle-free buying experience with over 9,000 Certified Dealers nationwide. Related Video:

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.