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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.

Rolls-Royce design chief Giles Taylor leaves the company

Another surprise executive departure on the sceptred isle: Rolls-Royce design chief Giles Taylor has left the car company and the parent BMW Group. Rolls-Royce's 52-word statement on Taylor's sudden exit said only that Taylor departed "to pursue alternative business interests." The news comes three days after Lotus CEO Jean-Marc Gales abruptly quit to become CEO of an English classic car restorer. Taylor leaves less than a month after Rolls-Royce introduced its brand-redefining Cullinan SUV, and before the auto show season where he would have been expected to lead the discussion on the Cullinan's genesis and detailing. According to his LinkedIn page, Taylor began his career with five years as an exterior designer at Peugeot, then graduated to a 14-year stint as chief designer at Jaguar; among other projects, he led the interior design of the 2003 Jaguar XJ before becoming chief exterior designer of the 2009 XJ. He moved from Coventry to Cheshire in 2011, becoming head of exterior design at Rolls-Royce. Just one year into the job, former director of design Ian Cameron left the company, and Taylor took over in 2012. His tenure has included the creation of retail products like the new Phantom and Dawn, one-offs like the Sweptail, concepts like the Next 100, and even a bespoke Paddington Bear. Rolls-Royce says it will announce a new designer "in due course." If the automaker looks in-house, it could tap Pavle Trpinac, now a senior exterior designer credited with the lines on the Wraith and the latest Phantom. Related Video: Image Credit: Rolls-Royce Hirings/Firings/Layoffs Rolls-Royce Luxury jean-marc gales giles taylor

Top Gear caught filming Best of British near Buckingham Palace

YouTuber and car-fan extraordinaire Shmee probably had very little trouble tracking down the Top Gear film crew recently, as the group was putting together an episode that could accurately be described as "excessive." With its flag-waving (literally) Best of British theme, the TG guys gathered a jaw-dropping array of British cars, and parked them all right in front of Buckingham Palace to make extra sure that the point was driven home.
Top Gear hosts Jeremy Clarkson, Richard Hammond and James May were outfitted with a trio of Jaguar F-Types festooned with gigantic Union Jacks, with which to survey the landscape of British motoring glory. In the video below, you'll see that this includes any number of Mini, Aston Martin, Lotus, McLaren, Land Rover, Bentley and Rolls-Royce models (just to name a few), as well as a healthy dose of weird stuff that most people would never guess at being built in the UK. The lawnmowers and military vehicles are especially cool.