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BMW negotiates Daimler alliance, buys out car-service partner Sixt

Sixt sells its stake in DriveNow car-sharing to BMW BMW in talks with Daimler to combine car-sharing Combining car-sharing business to aid robotaxi plans FRANKFURT — Germany's BMW has bought out partner Sixt from their joint venture DriveNow, paving the way for a broader car-sharing and driverless taxi alliance with Daimler to compete against Uber and Lyft. Car rental company Sixt said on Monday it would generate an extraordinary pre-tax profit of about 200 million euros ($248 million) in 2018 from the sale of the DriveNow stake to BMW for 209 million euros. "With DriveNow as a wholly-owned subsidiary, we have all options for continued strategic development of our services," said Peter Schwarzenbauer, BMW's board member for Digital Business Innovation. "Our experience with mobility services supports our development of future autonomous, electrified and connected fleets," he said, adding that BMW aims to have 100 million customers for "premium mobility services" by 2025. The Sixt deal comes as BMW moves closer to a deal to combine its car-sharing services with Daimler's Car2Go, a person familiar with the discussions told Reuters last week. The German carmakers want to build a joint business that includes car sharing, ride-hailing, electric vehicle charging, and digital parking services, a senior executive at one of the companies said on Monday. Mercedes-Benz parent Daimler and BMW declined comment on the status of potential talks on their car-sharing business. "This is speculation, we do not comment," BMW said. The senior executive, who declined to be named because the plan is not public, said: "This will create an ecosystem which can also be used for managing robotaxi (driverless taxi) fleets." BMW would contribute its ParkNow and ChargeNow businesses to the common company, the executive said, adding that there were still differences of opinion over the valuation of Car2Go. The market for ride-hailing services currently makes up around 33 percent of the global taxi market, and could grow eightfold to $285 billion by 2030, once autonomous robotaxis are in operation, Goldman Sachs said in a recent research note. BMW and Daimler are now working on developing autonomous cars, vehicles which could enable them to up-end the market for taxi and ride-hailing services.

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.

BMW i5, i7 rumors surface again

When we first wrote about a rumored BMW i5 in January 2014, after speaking to the Munich-based head of electric vehicle operations and strategy, BMW USA wrote to tell us that the "suggestion of a BMW i model larger than the i3 is hypothetical at this point." After that note came a year of speculation from places like Car and Driver, Automobile and Autocar zeroing in on what this "hypothetical" EV would look like. Car has this year's first scoop, laying out a few more of the ideas behind the expansion of the i line. Said to be aimed straight at the Tesla Model S, it is based on the long-wheelbase, Chinese-market 5 Series but will be badged as either an i5 or an i7. Expected to arrive in time for the 2018 model year to join the next-generation 5 Series, it will be priced to compete with the Model S, but loading up on options can push that beyond $125,000, according to Car. Outside will be a sedan body, possibly with cues from the 6 Series Gran Coupe and the next 7 Series. The internals will be a mix of components like steering, brakes, and suspension from the next ICE 5 Series, with a plug-in hybrid, battery-extending powertrain derived from the i8. Car's info suggests a four-cylinder motor with around 245 horsepower up front, with a 204-hp e-motor also up front and a 90-hp e-motor in the back, as opposed to the i8's single motor. That arrangement provides about 544 total horsepower and will allow the sedan to run in purely electric front- or rear-wheel drive, or as a petrol-electric all-wheel drive. Electric range should be around 80 miles, and the ICE will be limited to operation above 40 miles per hour. There's reason to start putting weight behind these specs because they repeat, almost exactly, those written in the Automobile piece from December. That story said BMW wants to build 30,000 of them per year, and a concept could come in 2017. Featured Gallery 2014 BMW i3: First Drive View 33 Photos News Source: CarImage Credit: Copyright 2015 Sebastian Blanco / AOL Green Rumormill BMW Hybrid Sedan bmw i bmw i5