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BMW X7 rumored to get BMW's best interior, 130,000-euro price

Spanish outlet Motor.es has some info on the coming BMW X7, the sport activity vehicle that will take the Munich brand to the penultimate SUV segment. Unnamed sources said BMW has been working on both the X7 and the future Rolls-Royce all-terrain vehicle for almost two years, and that in BMW guise it will ride on the CLAR (CLuster ARchitecture) platform that will make an appearance later this year under the new 7 Series. The Rolls-Royce, on the other hand, will get its own aluminum spaceframe. The two vehicles will share components, though, which are now being tested. Running gear and engines will borrow from the X5 and X6 tool chests, with rear- and all-wheel-drive configurations mooted and engines ranging from the TwinPower 3.0-liter six-cylinder to an uprated version of the 6.0-liter V12 in the 760iL. The 4.4-liter V8 is mentioned as the middle child and perhaps the base for an X7 M, should one be made. A plug-in hybrid offering could swipe the unit from the X5 xDrive40e PHEV, good for 55MPGe in that current application. The interior, we're told, will be the nicest seen on any BMW, said to surpass that of the new 7 Series. We'll have to wait two years to find out how close all of that is to the mark, but the tidbit that might need some salt sprinkled on it right now is the predicted price: Motor.es says 130,000 euros in Europe, to start. That's not the first time a sky-high price has been predicted, but a leap that far beyond the six-figure mark would readjust all of our expectations for the vehicle when an X5 cost 53,700 euros in France and an X6 costs 70,900 euros. Other outlets predict US pricing to start from around $60,000; the X5 costs $53,900 here, the X6 is $59,600.

AWD BMW M5 is headed our way

Remember the rumor about the BMW M5 going all-wheel drive? Well, there's definitely some truth there because these spy shots show BMW testing the Autobahn-storming sedan with the ability to spin the front and rear wheels. Our spy shooters grew suspicious when they saw this seemingly normal-looking M5 appearing to turn all four wheels during ice testing. They checked it out and snapped these shots underneath clearly showing power routed to the front axle. While this shows that the tech is at least being tested on a current-gen M5, all-wheel drive is probably not coming until the next 5 Series model, which is already being evaluated. The idea of power going to the front and rear axles for this sport sedan might polarize some hardcore brand fans as a break with tradition. However, the head of the M division thinks the change is a priority to actually put torque down effectively. The future vehicle is slated to get at least 600 horsepower and pack it into a lighter platform. Rear-drive M5 purists can take heart, though. The all-wheel-drive system would reportedly be an option, and it would be rear-biased to still let drivers hang the tail out, if the desire arises.

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.