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Why BMW doesn't plan to integrate Apple's iOS in the Car

While watching Apple introduce iOS in the Car during its WWDC keynote on Monday, we wondered how automakers, even the 14 who've already signed up to integrate this new in-car functionality of iOS 7, will feel about having the Cupertino company's mobile operating system supplant their own in-car systems. After all, some OEMs like Ford, General Motors and many luxury automakers have sunk millions of dollars into developing their own advanced infotainment, navigation and communication platforms like MyFord Touch, CUE and older systems like iDrive.
One automaker has now spoken up. A BMW spokeperson was interviewed by someone in the news department of British auto dealer group Arnold Clark and confirmed that the company would not be getting in line to integrate iOS in the Car anytime soon. The reason, as we suspected, is that BMW believes its own products developed over the last decade are both plenty good and already so deeply integrated with other systems of the car that, as told to Arnold Clark, "it would not be that straightforward to start changing all of the architecture of a car as has been implied [by Apple]."
While BMW isn't interested in spending more money to integrate Apple's services and functionality over its own, it has spent a good bit already to integrate iPhone functionality in its cars, including the relatively rare ability to support iPod Out and display Apple's own interface on Mini models with the optional Mini Connected feature, as well as committing to integrate Siri 'Eyes Free' functionality.

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 to skip 2016 Detroit, Geneva Auto Shows

Following a report from the team at MotoringFile, rumors have been swirling that Mini will join Jaguar Land Rover and abandon this year's North American International Auto Show. We can officially confirm that the BMW-owned brand will be passing on not only next month's Detroit show, but also Europe's flagship Geneva Motor Show. It all has to do with positioning. See, auto shows can be two things – they can be news events, or they can be consumer events. On the consumer side of the equation, we have the sprawling Chicago Auto Show, while both Geneva and Detroit lean heavily towards being a source of breaking news. Based on Mini's official statement, it looks like it was that positioning that led the brand to pass on two of the world's most important auto shows. "The BMW Group confirms it has decided Mini will not be represented at the shows in Detroit and Geneva. This decision reflects Mini's new product and brand strategy, which was presented to the public on June 24, 2015," Mini USA spokesperson Mariella Kapsaskis told Autoblog in an official statement. "Part of the new brand strategy is focusing on selected auto shows and an increased engagement with events that increase MINI's access to other relevant target groups." Max Muncey, PR manager for NAIAS, corroborated the statement from Mini. "The North American International Auto Show is one of the few shows to carry the international moniker. As such, we focus on making news with global media outlets rather than serving as a consumer show," Muncey told Autoblog. "Mini's decision reflects this positioning." According to Muncey, Detroit hosted 5,000 journalists last year, while its media coverage was roughly double that of LA, where Mini held the world debut for the new Convertible and the US debut for the Clubman last month. In our opinion, with both those debuts out of the way and not much else coming down the pipe in the near future, prioritizing auto shows based on consumer attendance rather than media attendance seems like a sound strategy. Here's hoping Mini returns to the frigid wastes of Detroit for the 2017 installment of the North American International Auto Show.