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Next-generation Mini Clubman could morph into a crossover

Mini knows selling station wagons in a market dominated by crossovers and SUVs is easier said than done. Since it can't beat them, it's considering joining them by making the next-generation Clubman more crossover-like than the current model, which proudly embodies its station wagon heritage. Oliver Heilmer, the BMW-owned firm's chief designer, broke the news to British magazine Autocar. The publication pointed out the current-generation Clubman (pictured) is about as long and as wide as the Countryman, and the two models occupy the same price bracket, but it's outsold by its taller sibling. Making it an SUV would certainly give sales a significant boost, but where would this strategy leave the Countryman? Launching a smaller soft-roader is off the table, so one nameplate would grow in size. The Clubman might take the Countryman's spot in the range, allowing it to move up. Nothing is set in stone yet, though putting the Clubman on stilts would better align it with the tastes of motorists in America, one of the brand's key markets. While Mini's sole wagon looks ready for a growth spurt, Heilmer stressed the retro-styled Hardtop — one of the brand's pillars — will remain true to its tiny roots when it enters its fourth generation in the coming years. Keeping the hatchback relatively small while carving out an acceptable amount of interior space and making it compliant with safety regulations around the globe is a huge challenge for Mini's vehicle development team. And, contrary to some industry rumors, going electric doesn't instantly solve the problem. "It's not necessarily the internal combustion engine that needs the space. Even with an EV, which has a smaller motor, you still need a crash box. Crash performance is the bigger issue," the designer explained. He's hopeful his team will solve this problem in 2020, but he warned keeping costs in check is another priority. Clearly, designing a city-friendly car is more difficult than it used to be. New technology might come to the rescue. Energy-absorbing foam could notably take the brunt of an impact, and allow designers to reduce the Hardtop's overhang. Other models would likely receive it, too, but Heilmer's team is primarily concerned about keeping the Hardtop's footprint in check. The rest of the range can — and, probably, will — continue to grow in the coming years. All told, the Hardtop will remain the foundation the rest of Mini's range is built on.

Mini battling sales slump again, is it becoming cliche?

Things aren't looking good for Mini this year. The diminutive BMW brand has shown falling sales every month in 2014 in our By the Numbers wrap-ups. If that weren't bad enough, the latest Cooper Hardtop suffered fuel economy issues upon arriving to the US. First, there was a delay getting some versions certified, and then several models had to have their miles-per-gallon ratings revised.
According to Automotive News, the brand's sales are down about 20 percent for the year through October, despite hitting a record 66,502 vehicles in the US for 2013. For their part, Mini execs attribute much of that drop due to constricted supply. However, with the new-generation three-door Cooper finally on sale and the five-door coming at the end of the year, there might be room to bounce back some in the final months of 2014. "We are starting to claw back our way a little bit. It will be an uphill battle," said David Duncan, vice president of Mini of the Americas, to Automotive News. "We will not get back to where we would be even year over year. It should be a lower decrease than it is so far."
AutoTrader Senior Analyst Michelle Krebs reminds Autoblog that external factors aren't helping the brand's sales either. For one, there's "a direct correlation exists between falling gas prices and lower small car sales," she said, and the average price per gallon is now $2.94, according to the US Energy Information Administration. Also, the booming popularity of small crossovers is eating into the compact car market. Mini has its Countryman model, but the trend could be hurting the rest of its lineup. "Mini was fresh, new, unique and stylish, but fashions change and fashion-conscious buyers are fickle. They move on to the next thing," Krebs said.

BMW seeks partners for electric Mini, could make it an all-EV brand

LOS ANGELES — Germany's BMW is talking with other automakers "around the world" to try to find partners to lower the cost of electrifying its future Mini small cars, management board member Peter Schwarzenbauer told Reuters. "We are talking to many OEMs (manufacturers) around the world, not only in China, (about) how to electrify smaller cars," Schwarzenbauer said. "There's no final conclusion on it." Chinese automaker Great Wall Motor said last month it was discussing a possible venture to build Mini vehicles in China. BMW currently does not build Mini vehicles outside Europe. Schwarzenbauer declined to discuss the Great Wall situation, saying "this was speculation." However, he said building smaller electric cars was challenging, not only because of the financial costs, but also the engineering problem of fitting batteries with sufficient range into a smaller vehicle package. BMW has worked with rivals before to share the costs of clean vehicle technology. The automaker has a partnership with Toyota to develop fuel cell vehicles. BMW has said it plans to launch a new, electric Mini model in 2019. Eventually, Mini could become an entirely electric brand aimed at urban consumers, Schwarzenbauer said. Mini sales in the United States have fallen 10 percent through the first 10 months of this year, as demand for many smaller cars has waned in favor of sport-utility vehicles and trucks. "It's really only in the U.S. where we are facing this with Mini," Schwarzenbauer said. BMW will not try to reverse that trend by adding larger SUVs to the Mini lineup, Schwarzenbauer said. Instead, he said, "the way for Mini in the U.S. is ... building the Mini brand in the direction of the electric urban mobility company." On a separate issue, Schwarzenbauer said BMW intended to offer a self-driving car planned to debut in 2021 at a price that could be below $100,000. The iNEXT model, which BMW previewed earlier this year, will be offered to individuals, ride services fleets and put into service in BMW fleets, Schwarzenbauer said. "By 2021, you will have a lot of people who want to own this car," he said. "It will be a normal price. We are thinking of scaling this. To bring a $150,000 electric car is nice, but it will not really scale." When it launches, the iNEXT may not be offered with complete, so-called Level 5, autonomy because the regulatory and legal frameworks for such a vehicle likely won't be in place, Schwarzenbauer said.