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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.

Mini Clubman finally released with All4 all-wheel drive

Update: Mini has just revealed US pricing. The Mini Cooper Clubman All4 will start at $26,750, and the Cooper S Clubman All4 will start at $30,300. Both prices include destination. By now, you're surely familiar with the joke about how cars from Mini are no longer... well, mini. We won't repeat it here (oops, too late), except to say that the first vehicle that really pushed Mini's historic boundaries was the original Clubman in 2008. That machine featured a stretched wheelbase, an extra door on one side and an unconventional barn-door-style rear opening. For 2016, the Clubman recipe was revised with an even longer wheelbase and more conventional side doors, though still with the split rear hatch. Now, finally, the Mini Clubman is available with all-wheel drive. As you would expect from Mini, the new Clubman carries All4 branding. A propellor shaft sprouts from the front differential, and a new rear diff is added with an electrohydraulic clutch to send power to the rear wheels when needed. Mini promises that its All4 system will not only be a boon in inclement weather, but will also aid high-speed handling. We look forward to putting those claims to the test. Drivetrain options are borrowed from the standard front-wheel-drive Clubman range. A 134-horsepower three-cylinder comes in base Clubman models, and a 2.0-liter mill with 189-hp powers upgraded Clubman S models. An eight-speed automatic with paddle shifters and launch control is optional, though shift-yourself purists will surely opt for the standard six-speed manual. Mini says the Clubman S All4 can record a 0-60 time of 6.6 seconds with the automatic, or 6.7 with the manual. That's a couple tenths quicker than the front-drive Clubman S. Cargo space remains at 17.5 cubic feet with all seats in place, or as much as 47.9 with the back seats folded, so the rear differential and propellor shaft don't impinge on passenger space. Fuel mileage figures haven't yet been released, but we'd expect a small drop from the standard Clubman's 25 city and 35 highway ratings. We'd also count on a price increase of a few thousand dollars to get all-wheel drive. Feel free to peruse the press release below for more information. SUPREME DRIVING FUN IN EVERY SITUATION: THE NEW MINI CLUBMAN ALL4 Woodcliff Lake, NJ – January 19, 2016 – The market launch of the new MINI Clubman sees the latest model generation of the British brand embark on its advance into the premium compact segment.

Evo's Mini-focused tribute to Best Motoring is the best thing you'll see all day

Our friends at Jalopnik are absolutely spot on with their argument that "your life is shit" if you've never experienced Japan's outstanding Best Motoring. The show is easily one of the best car-related things on the Internet, taking the creme de la creme from what is now known as the Super GT series, as well as D1 drift and other disciplines, and plopping them in some of the finest cars of the 1990s and 2000s. Seriously, go and check it out. Back? Good. In honor of Best Motoring, Evo has put together its own tribute (some might call it a cover version) of the video series, assembling four drivers and four cars for an all-out track battle. The vehicles in question all sport the Mini badge, and they run the gamut from hot road cars to one-make racers. First, we have Andy Wallace and the best car of the bunch, a 2006 John Cooper Works GP (full disclosure: your author owns an R53 and will never be convinced that it isn't the finest example of the revived Mini, because supercharger). He'll be followed by Marino Franchitti in R56-based, 2013 John Cooper Works GP, while Dickie Meaden and Jethro Bovingdon are in the race-prepared, second-generation Mini Challenge JCW and third-generation Mini Challenge S275, respectively. Everything from the track action (which we won't spoil for you), to the camera work to the pre-race introductions is spot on, just like we'd expect from Best Motoring. It's outstanding, and you should be sure to take a look at it straight away.