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Mini says it won't leave the convertible segment after all

Ending years of frequent and credible rumors, Mini announced it will replace the Convertible halfway through the 2020s. Demand for roadsters is dropping in many global markets, but the firm remains committed to the segment. Mini stated it's proud to offer the only open-top four-seater in the premium small car segment; most of the other roadsters in its price range are two-seaters. While it's becoming increasingly difficult for companies to make a business case for a car like the Convertible because the segment it competes in is quickly shrinking, Mini explained demand remains high enough in key markets like the United States and England to warrant launching a new model. "We are firmly convinced of the success of this vehicle concept or the future," said company boss Bernd Korber in a statement. "[In 2020], almost one in five Mini customers in Germany opted for open-top driving fun." Mini stopped short of releasing information about the next-generation Convertible, though we assume it will continue to be closely related to the two-door Hardtop. As we've previously reported, the fourth-generation hatchback will be characterized by a retro design, but it will be smaller and visually purer than the model currently in showrooms. And, while the company is pegging its future on electric cars, the next Hardtop will remain available with gasoline-burning turbocharged engines. Reading between the lines suggests an electric Convertible will join the range, however. Additional details about the next-generation Convertible will be released in the coming months, and Mini announced the model will make its global debut in 2025. It will arrive approximately two years after the fourth Hardtop.  

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.

Mini nixes plans for 7-seater, Countryman to stay largest model

Contrary to popular belief, it seems that Mini's growth plans do have a limit both in size and number of models. During the 2014 Geneva Motor Show, it unveiled the six-door Clubman concept (pictured above) that was 4.4-inches longer and about two-inches wider than even the current Countryman crossover. Mini design chief Anders Warming says that this is the new size limit for its models, and the BMW subsidiary isn't building a larger, seven-passenger vehicle above the current Countryman.
"We won't build anything bigger than the Countryman, not at this moment. You should be able to park a Mini in a city, so a Countryman or this new Clubman is as big as it should be," said Warming to Auto Express in Geneva. Rumors going back to last November, pegged the Mini as developing an even larger vehicle to take on mainstream CUVs.
While Warming is ruling out a bigger Minis for now, a smaller one like the Rocketman concept still might be in the cards. He said that the project has been warmly received but still had to be investigated because "it's a numbers game." So if bigger Minis aren't coming, there still might be a slim chance for a smaller one.