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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.

Junkyard Gem: 2011 MINI Cooper Clubman

The original BMC Mini changed the automotive world forever in 1959, staying in production in essentially the same form all the way through 2000. Its innovative transverse-mounted engine and front-wheel-drive transaxle became the layout for most cars built in the world today, and its cheap price tag put millions of new drivers on wheels for the first time. Like the Volkswagen Beetle and Fiat 500, it was inevitable that the shape of such an iconic machine would be applied to a modern platform for the retro-ization craze of the late 1990s and early 2000s, and that's just what happened when BMW ended up owning the Rover Group. The BMW-built MINI Hardtop first appeared on our shores for the 2002 model year, and used-up examples of these cars are now extremely plentiful in self-service wrecking yards across the continent. The Cooper Clubman, which debuted here for the 2008 model year, has been a rare sight during my junkyard travels, and so I documented this one in Denver a few weeks ago. The Clubman wasn't quite as nimble and easy to park as the regular Cooper, but its increased cargo capacity and split rear doors made it a lot more useful for trips to the big-box store. It also offered more space for rear-seat passengers, and the right-side suicide rear door made it much easier to get into the back seat (on that side). The new MINI started out much larger than the clown-car-tiny old Mini, anyway. The added usefulness and more recent release of the Clubman have made it an uncommon sight in American car graveyards. This one was uncrashed and still had the original manuals inside, which suggests that some owners of first-generation (2008-2014) Clubmen are no longer willing to pay for major mechanical repairs when needed. We'll see how this sorts out during the next few years. As the owner of a 2000s wagon with a manual transmission, I applaud the original purchaser of this wagon for the choice of three-pedal setup. The interior looks to have been fairly tidy before junkyard shoppers tore it apart. The Colorado toll-road transponder suggests that this machine was a well-cared-for commuter for its decade on the road, but proved to be not worth repairing when some major component failed. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The future will look exactly like the MINI CLUBMANIA human-scale pinball machine. This content is hosted by a third party.

Next-gen Mini interior ditching familiar center speedo

A Reddit user has posted images of the 2015 F56 Mini Cooper, one each of the exterior and interior. As has been the case since the launch of the new Mini in 2001, the overall exterior shape underneath camouflage screams Mini, but insiders are still calling the coming F56 model "the most aggressively different new Mini yet." Inside, though, the two-door that defined premium hatchbacks has, according to its most devoted buyers, gone mainstream.
The giant ring atop the center console is there, but there's no longer a speedometer inside of it. Instead, in an integration that brings to mind words like "shoehorned," Mini designers have placed radio and telephone controls inside the bezel. According to the Mini experts at MotoringFile, the picture above is the base trim and one of four possible treatments - in the upper trims a larger screen for navigation takes up most of the space. The bezel itself is marked with mood lighting that supposedly "swirls around" when you start the car with the red toggle switch.
The speedo rests atop the steering column with a tachometer placed to its left. The BMW wheel pictured is just for the prototype - you can expect a familiar three-spoke Mini wheel when the car is revealed, and latest rumor is that the event will take place at this year's Frankfurt Motor Show.