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BMW shuffles chairs in its design department

BMW Group has made some changes to its design team since August 1, and has shuffled top personnel to different positions at BMW Design, Mini Design and Rolls-Royce.
The BMW Design team led by Karim Habib (middle, right) gains a new head of Exterior Design in Domagoj Dukec (right), who has worked for the exterior design team since 2010 and shaped the Concept Active Tourer.
Oliver Heilmer (left), who has worked for BMW's interior design unit since 2000 and designed the 5 Series interior, replaces Marc Girard as head of Interior Design BMW Automobiles. Marc Girard goes to manage BMW's subsidiary design group, BMW DesignworksUSA.

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.

Bloodhound hits 210 mph in test for land speed record run

It was actually 210 miles per hour, 10 mph faster than promised. The rest of the day went swimmingly, and on schedule, by the Bloodhound land speed record team. "The car ran for 20 minutes, and it did two full-power runs, with full power for 5 seconds, and 0 to 200 mph in just under 9 seconds," said Mark Chapman, Bloodhound's chief engineer. "So the exciting bits were about 18 seconds long, but people were here from dawn to dusk. The atmosphere was unbelievable." Bloodhound, which will travel at 70 mph simply on the idle of its EJ200 jet engine, had to be held back on the brakes before wing commander Andy Green floored it for 5 seconds. The jet flamed and roared on afterburner and then it was over. I might have given a little squeak; it was mightily impressive. "This is a really big engine," said Richard Noble, Bloodhound project director and former land speed record holder, "and when it runs, there's a flame and a crackle and boom, and people think, 'My goodness, that's really something.'" It was, and Green might well have thought so when he first came to apply the brakes in testing for the inaugural public run last week on the runway at RAF St Mawgan near Newquay in Cornwall. "We've had some interesting times working out how carbon brakes work, because they do take a while to warm up," said Chapman. "The cockpit footage online shows Andy's eyes looking like dinner plates when he puts his foot on the brake and nothing happens for a bit." Typically, Green took it all in his stride. He is one of just three people alive to have traveled at 600 mph on the ground (Richard Noble and Craig Breedlove are the others) and was hugely impressed with Bloodhound. "The car is absolutely fabulous," he said. "From day one, it felt right: crisp and precise, you can feel it on the road; it's super. There was only one slight surprise on the braking and that was more to do with the engine over-swing." This meant that the Rolls-Royce Eurofighter engine wouldn't shut off immediately when Green lifted from the throttle. "That delay was a real surprise to us," he said, "because all previous jet cars have had mechanical fuel-control systems where a rod closes a valve and a quarter of second later, all thrust has gone. The EJ200 engine, though, manages its own fuel supply based on what the digital throttle request is, and it takes quite a lot longer to stop.