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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.

2017 Mini John Cooper Works Clubman ALL4 | Pint-size performer with a premium price

Last September, Mini revealed the Clubman John Cooper Works (JCW). It applied the same general JCW formula used on the regular three-doors to the longest Mini by giving it even sportier suspension and the potent 228-horsepower turbocharged 2.0-liter four-cylinder engine. But from there, Mini gave the Clubman JCW even more torque than other JCW models, and the most of any Mini model, with a total of 258 pound-feet. It also fitted standard all-wheel drive. On paper, it sounds like the ultimate performance Mini, and it doesn't hurt that it's about the most practical model. So how did it hold up in practice? First of all, this Mini has a serious weight problem. You might be tired of alarmist auto journalists whining about the increasing size of vehicles, but it's a major issue with this Mini. It actually weighs more than a V6 Chevrolet Camaro. The Camaro weighs 3,435 pounds, and the Mini weighs 3,450. That's for the manual transmission version, too. Our automatic-equipped test car weighed more than that. As a result, it feels noticeably slower than the competition, despite making 228 horsepower and the aforementioned torque. There's an area in which the Clubman JCW could easily lose some weight, and that's in the all-wheel-drive system. It's a Haldex-style system that only kicks in when the front wheels start to slip, so it's only beneficial for traction in bad weather, not for improving the driving experience by, say, reducing the car's understeer. That's fine for more mainstream Minis, but the JCW line is all about performance and speed, so if the all-wheel-drive system doesn't improve the driving experience, it should simply be dropped to make the car lighter. Despite the Mini's prodigious portliness, there are good points. The engine is very smooth, and power comes on almost instantly. In more aggressive driving modes, the exhaust pops and burbles almost every time you lift off the gas pedal. T he eight-speed automatic paired with this engine was equally up to the task. Shifts were fast and smooth. And it even worked well leaving it in automatic mode. It held gears smartly, and it would downshift while braking to ensure you had the right gear when taking off again. The Clubman JCW also has the brand's trademark corner-carving skills. Body roll is nearly absent in the normal driving mode, and what little was evident is removed when switching to Sport mode. The car responds immediately to each steering input, and it has tenacious grip through corners.

BMW's Connected Drive feature vulnerable to hackers

BMW is working to fix a cyber-security flaw that has left 2.2 million vehicles worldwide vulnerable to hackers. Cars equipped with the automaker's Connected Drive remote-services system are affected, according to the German Automobile Association (ADAC), which first discovered the problem. Researchers found they could lock and unlock car doors by mimicking mobile communications and sending phony signals to a SIM card installed in affected vehicles. An attack could be launched "within minutes" of accessing the system without the perpetrators leaving a trace, according to their report, in part because once they had gained access to the network, the communications were not secure. In response to the security gap, BMW says it has been upgrading software via over-the-air updates over the past week, so no visits to dealerships are needed to remedy the security hole. In fact, owners of affected cars may not have even noticed the updates taking place. The problem affects BMW, Rolls-Royce and MINI vehicles equipped with Connected Drive since 2010. Flaws were first reported to BMW last year by ADAC, which is the country's equivalent of AAA. ADAC says it withheld a public announcement until the car company could address the problem. While BMW has pushed the software patch to most affected vehicles, the organization said it's possible some at cars in the United States had not yet been updated. BMW did not respond to a request for comment Monday. In a written statement, the automaker said it knows of no real-world breaches. 2015 Off To Dubious Start The hack could raise the eyebrows of industry leaders: Cars are now the equivalent of mobile computers and cyber-security experts have been warning that the auto industry has been slow to close its security holes. BMW's breach marks the second time in 2015 that researchers have found a popular automotive feature with little or no security precautions. Last month, experts said a popular device made by Progressive Insurance that allows motorists to track their driving habits contained no security whatsoever. Like the Connected Drive smart-phone app, many automotive components and infotainment features were conceived and produced at a time when industry executives never considered the possibility someone might want to hack into them. But increased connectivity brings increased risk. Going forward, BMW says its Connected Drive features will now operate by using encrypted communications via the HTTPS protocol.