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BMW profit of $2.7B is down as automaker invests to keep luxury lead

Despite selling 6.6-percent more vehicles - a record by volume - and posting higher revenues in the second quarter of 2013, BMW Group's profit of 2.07 million euros ($2.75 billion) is down 8.8 percent from last year. Investments in new technology (e.g. the new i3) and personnel, in addition to a competitive market, are to blame, BMW states. But the automaker remains committed to its fiscal targets for 2013, which, Chairman of the Board of Management of BMW AG, Norbert Reithofer, says will be "on a similar scale to 2012."
The BMW brand's sales performance in the first half of the year, which increased by 7.7 percent to 804,258 vehicles delivered, was good enough for it to maintain its lead in the luxury market, narrowly beating Audi, which delivered 780,510 vehicles, Automotive News reports. Mercedes-Benz delivered 694,433 vehicles to cement third place.

Forget about greenlighting it, BMW is already testing the M2

One week ago, we reported, with some skepticism, that BMW had greenlit a car we've been waiting for since the 1 Series M Coupe was discontinued - the M2. Now, we have the first images of that new hotshot underoing testing in Germany.
What's our reasoning here? After all, this just looks like an M235i. Well, that camo is disguising swollen fenders designed to conceal wider tires. Now, these aren't production changes, and it's very likely that the eventual M2's fenders will look quite a bit different. According to our spy, the front fenders have been borrowed from the M235i Racing, while the rears are from an unknown source.
Our spies are also quick to point out a few other high-performance items on this mule. The cross-drilled brakes and blue M calipers are one such item, although we aren't sure how much they differ from the optional stoppers on the production M235i. The black wheels are borrowed from the M3 and M4, and are shod in what look like a sticky set of Michelin tires.

BMW working on X2 crossover

Like the rest of the auto industry, BMW is going wild for crossovers, and the company's North American boss is wishing for supply to sell even more vehicles in the segment. It looks like the Bavarian brand is ready to feed all of this demand because the X2 reportedly has the green light for production, according to unnamed insiders speaking to Autocar. As its name suggests in BMW parlance, the X2 would be a five-door, high-style, coupe-like CUV that would be a smaller take on the X4 and X6. While these models aren't necessarily paragons of aesthetic beauty in the brand's lineup, their development is partially subsidized by other vehicles. The X2 reportedly shares drivetrains, electrical systems, and a platform with the next-gen, front-wheel drive X1 (pictured above). Sales in the UK at least could begin as soon as the second half of 2017, according to Autocar, and an M Performance version boasting up to 300 horsepower might even join the lineup in 2018. "We're finalizing the first prototypes now," a source said to Autocar, and a concept should preview the design before release, possibly at next year's Geneva Motor Show. BMW trademarked the X2 name in 2012, and rumors have continued to arise about it since then, including a possible design sketch. Related Video: