on 2040-cars

Auto blog

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.

Mini brings back the six-speed manual for certain 2023 trims

Mini has good news and some steep price increases for the 2023 model year, the cars available to buyers once production switches to the coming year in November. The good news for enthusiasts is the return of the manual transmission to more trims after a pause in deliveries caused by supply shortages. The six-speed manual becomes a standalone option on two-door Minis with hardtops, meaning the Cooper, Cooper S, and John Cooper Works variants. The bad news for enthusiasts who wanted to pair that gearbox with a base Mini Cooper Classic is that the Classic is gone. As other automakers are doing, Mini culled the entry-level trim for the new year, automatically raising the price of entry by a non-miniature amount. Product planners played a bunch of presto-change-o with standard features, packages and standalone options for various trims. For instance, the hardtop two-door Cooper, Cooper S and JCW in Signature guise get power folding mirrors and auto dimming rearview mirrors. The Cooper S and JCW in Iconic trim pick up Mini's Parking Assistant. On the other hand, the Cooper SE in Iconic trim loses the alarm system and active cruise control, while certain trims of the Countryman Cooper S and Cooper S All 4 drop the alarm system and dynamic damper control. If you're interested in a Mini, look closely at the small print about the feature set. The Resolute, Untold and Untamed special editions in Iconic 2.0 fettle expand their options menus. The Resolute adds Enigmatic Black Metallic as a primary body color with a Pepper White roof, or a Nanuq White body and roof. The carbon black Mini Yours Lounge Leather can be optioned for $750. The Untold expands availability from just the John Cooper Works Clubman to the Cooper S and Cooper S All4. Its exterior hues will now include Midnight Black Metallic with black spats. As for the Untamed, its paint palette adds Nanuq White, partnered with the standard black contrasting roof and mirrors, and graphics in Matte Bluestone. For all Mini Hardtops, Pepper White, White Silver and Moonwalk Grey body colors will retire at the end of October. Replacing them are Nanuq White, and Melting Silver III that becomes available throughout the range. Pricing goes way up for base versions now that the Classic is gone, with four-figure jumps on every trim compared to pricing Mini released in February of this year.

Man criticized for filming rather than helping road rage victim

A man from Cheshire in England was criticized on social media after he filmed a road rage brawl and provided color commentary for it instead of helping the victim. According to the Daily Mail, Alec Wall was traveling through Cheshire when he came upon a strange scene. A red Mini was stopped at a light, and standing next to it in traffic was a woman in a white dress. As Wall watched, the woman lunged for the Mini's driver's door, wrenched it open, and began fighting with the woman behind the wheel. While the women fought, Wall pulled out his phone and started recording. "Road Rage!" he shouted as he filmed. Apparently finding the situation extremely funny, Wall continued to film, giggling all the while and providing commentary on the scuffle. "Oh my God, actual road in a rage!" he shouted. Once he returned home, Wall uploaded his video to a Facebook page called Idiot UK Drivers Exposed where it racked up nearly 90,000 likes. Not everyone found it as funny as Wall did, however. Comments began piling up chastising Wall for his flip attitude and his failure to intervene in the fight. "How about instead of laughing and screaming 'road rage' like a moron you do something productive like get out of your car and try to defuse the situation? Use some intelligence..." said one commenter. "I really have failed to see what the camera man is laughing at," said another. "It looks to me like someone being seriously assaulted. Why is that funny?" There is no report on the cause of the incident, or how it ended. Related Video: News Source: The Daily Mail Auto News Weird Car News MINI road rage fight