1972 Bmw 2002 Base Sedan 2-door 2.0l Colorado Orange W/ Sunroof Nice Driver on 2040-cars

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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.

Preserving automotive history costs big bucks

$1.8 million is spent each year to maintain GM's fleet of 600 production and concept cars.
When at least two of the Detroit Three were on the verge of death a few years back, one of the tough questions that was asked of Ford, General Motors and Chrysler execs - outside of why execs were still taking private planes to meetings - was why each company maintained huge archives of old production and concept vehicles. GM, for example, had an 1,100-vehicle collection when talk of a federal bailout began.

Frankfurt Motor Show Notes: Why Jaguar decided to build an SUV

It was inevitable. Jaguar had to make an SUV, and that notion became reality this week with the debut of the F-Pace, an all-wheel-drive five-seater that will launch in the United States next spring. Some purists may cringe. But in an era when Porsche, Bentley, Lamborghini, Rolls-Royce, Aston Martin, and other traditional luxury brands are all building or (planning to build) SUVs, Jaguar had to evolve. While it seems like a leap for Jaguar to make an SUV, longtime design director Ian Callum said it's been in the works for years. "The first time I was asked the question was when I arrived 16 years ago," he said. So in 1999 (and probably well before that), Jaguar was already thinking SUV. What took so long? "It wasn't a priority," Callum said. Jaguar was concentrating on fixing its existing lineup, which was pockmarked with holes and poorly selling products, like the X-Type. Along the way, Jaguar and sister brand Land Rover were sold by Ford to Indian conglomerate Tata Motors. Flash forward several years, and Jaguar and Land Rover are both experiencing a resurgence in the United States and around the world. Jaguar's lineup is flush with the E-Type's modern successor, the F-Type, plus a new version of the XF. The XJ received a 2016 freshening, and the smaller XE sedan is on the way. Jaguar put its house in order as other factors conspired to make a crossover timely. Fuel prices stayed relatively low, and consumers in the US and China remained steadfast in their love for utility vehicles of all stripes. Making a Jaguar SUV became a priority. "The world was telling us in no uncertain terms this is what they wanted," Callum said. "Not to be in the sector would be a little naive for the sake of purity." Jaguar proved its intent two years ago when it revealed the C-X17 crossover concept at Frankfurt, and the final production model is close to the prototype's striking looks. "I thought we managed to maintain that spirit," Callum said. It's a true Jaguar, with cues from the F-Type, 1968 XJ, and other famous models. Who would have thought Jaguar would make an SUV? "I certainly didn't," Callum admitted. But the F-Pace is here. If Callum is okay with it, purists can be, too. Quick Hits Opel retrenches for 2016 and beyond Opel used the Frankfurt show to display its new generation of the Astra, a critical vehicle line for the German division of General Motors.