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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.

Hearse based on Rolls-Royce Ghost called the Ghoster, may be too on-the-nose

If you want to roll in a Rolls-Royce even after the very end, an Italian company called Biemme Special Cars has turned the Ghost into one of the world's most luxurious hearses. It keeps the sedan's distinctive rear-hinged doors and luxurious cabin and adds a huge coffin compartment. While it's relatively difficult to make an elegant-looking hearse, the Ghost-based model — which is oddly known as the Ghoster — features a pretty sleek design. It's almost identical to the regular-production Ghost from the tip of the front bumper to the upper part of the windshield. Beyond that, it features an upward-sloping roof panel painted in the same color as the hood, huge side windows with a bright frame, and a seriously long wheelbase. Biemme explains that it expanded the Ghost's body using a tubular structure that's covered with steel panels. The passenger compartment looks like it's standard Ghost fare, so what you get largely depends on the boxes you tick when you configure the car. Wood interior trim, leather upholstery, and other opulences comes standard, and Biemme notes that a 1,300-watt sound system is available ... because you need that in a hearse? Maybe to play something by Ray Parker Jr.? The list of options also includes a built-in drink cooler, the Starlight headliner, internet connectivity, and LED interior lighting, while the rear doors can be ordered with curtains. Biemme separated the passenger and coffin compartments with a shatter-proof divider. It then added a power-operated platform and LED lighting, while the same type of wood trim and leather upholstery used in the passenger compartment adds a finishing touch to the design. There are no hearse-specific mechanical modifications. Power comes from a 6.7-liter V12 that's twin-turbocharged to 563 horsepower and 627 pound-feet of torque, so the Ghoster should offer decent acceleration in spite of what we imagine is a not-inconsequential amount of weight added by the hearse conversion.  Biemme hasn't announced pricing for the Ghoster. For context, the standard Rolls-Royce Ghost starts at approximately $350,000. Featured Gallery Rolls-Royce Ghost-based Ghoster hearse Aftermarket Rolls-Royce Wagon Luxury

BMW profit of $2.7B is down as automaker invests to keep luxury lead

Despite selling 6.6-percent more vehicles - a record by volume - and posting higher revenues in the second quarter of 2013, BMW Group's profit of 2.07 million euros ($2.75 billion) is down 8.8 percent from last year. Investments in new technology (e.g. the new i3) and personnel, in addition to a competitive market, are to blame, BMW states. But the automaker remains committed to its fiscal targets for 2013, which, Chairman of the Board of Management of BMW AG, Norbert Reithofer, says will be "on a similar scale to 2012."
The BMW brand's sales performance in the first half of the year, which increased by 7.7 percent to 804,258 vehicles delivered, was good enough for it to maintain its lead in the luxury market, narrowly beating Audi, which delivered 780,510 vehicles, Automotive News reports. Mercedes-Benz delivered 694,433 vehicles to cement third place.