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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.

BMW rethinks all-wheel-drive M cars

BMW M hasn't been able to decide whether it wants to jump on the all-wheel-drive bandwagon or not (with the exceptions of the X5 M and the X6 M, which are based on AWD architecture). That might be changing though, since M's president Friedrich Nitschke recently realized that 70 to 80 percent of Mercedes-Benz E63 AMGs are ordered with all-wheel drive. Earlier this year, Nitschke said that there were no new AWD M models planned, so this comes as somewhat of a surprise.
"On our cars we are thinking of all-wheel drive, but it won't come before we get the successor of the M5 and M6," Nitschke said in a Motoring report. "That's the timing and it's not practical to react in the current life cycles."
"On our cars we are thinking of all-wheel drive." - Friedrich Nitschke, BMW

Mini might build a sedan because it's running out of shapes

Rumors suggest we could soon see a Mini with a trunk to haul your junk. Autocar cites unnamed insiders who claim the sedan is part of the brand's plan for upmarket growth. There's even a possibility the new model could use the Riley moniker in reference to the Elf (pictured above) from the 1960s, which was a Mini with a tiny trunk. The Mini sedan would use BMW's front-wheel-drive platform that underpins the X1 and Clubman and might share the wheelbase and frontend styling with the Clubman as well, according to Autocar. Mini's execs think the four-door would perform especially well in North America and China, where there's less demand for hatchbacks. Ralph Mahler, vice president of Mini's product management, hinted at the possibility of the four-door to Autocar. "For example, in Asia and the US, the sedan segment is very big. This is very interesting to us, of course," he said. Mahler admits that many people don't know about the Mini-based vehicles with trunks from the '60s, like the Riley Elf, so it would be hard to market the new model on that heritage. This could be the perfect time to add a Mini sedan to the lineup, and it might not be a completely new idea for the brand under its BMW stewardship; a rumor from 2012 shows that Mini's bosses considered a four-door at least once before. The company launched new versions of its Hardtop, Convertible, and Clubman, and even added four-door and all-wheel-drive versions of the Hardtop to further blur the lines between that car, the Clubman, and the Countryman. The next-generation Countryman crossover should debut later this year, and the brand reportedly cancelled the Superleggera Vision roadster and Rocketman compact, as Mini has chosen to go big with its new models and its lineup breadth. There are only so many versions of a hatchback a company can make, and the short-lived Mini Coupe wasn't exactly a huge success. If Mini is going to try a new body style, a sedan actually makes some sense, even if we'll probably prefer the look and practicality of the hatches. Related Video: