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BMW web sales plan opposed by German dealers

Tesla isn't the only manufacturer that is facing a backlash over its plans to sell cars directly to customers. BMW is under fire from its German dealerships over its desire to sell its cars via the internet.
BMW has plans to sell the new i3 through the World Wide Web, while a "Mobile Sales Force" will be making house calls. According to Automotive News Europe, Head of German Sales Roland Krueger told German weekly Wirtschaftswoche, "We can imagine that Internet sales could be expanded to all models." This is the particular caveat that has traditional brick-and-mortar dealers so up in arms.
According to the head of BMW's German dealerships Werner Entenmann, "We told BMW in no uncertain terms that we cannot accept direct sales channels." Reuters reports that an anonymous dealer has gone so far as to pledge not to use the sales force in Germany. Krueger, for what it's worth, told Wirtschaftswoche that the "backbone" of BMW sales will still be traditional dealerships.

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 adds on-street parking to DriveNow carsharing in SF

BMW is putting a new spin on the concept of the San Francisco treat. The German automaker cut a deal to clear out 80 street-parking spaces for its DriveNow car-sharing program in the notoriously parking-constrained City by the Bay. Bimmer is also more than doubling its all-electric ActiveE car-sharing fleet in San Francisco to 150 vehicles from 70. Starting later this month, customers will be able to access the DriveNow website or app to find, reserve and park the electric Bimmers on certain streets in San Francisco's Mission district. Once the car is ready to be turned back in, the vehicle's in-car screen will also indicate what "drop-off" zones the driver can use to end the reservation. It's all very high-tech, and BMW is looking to expand the program to other San Francisco neighborhoods like Bernal Heights, the Haight, Noe Valley and Potrero Hill. There's also a contest for users to name the 80 new vehicles, but it involves a really complicated lettering system. "New" here means new to DriveNow, since these ActiveE electric vehicles are really those that were, until recently, used by the Electronauts in BMW's EV leasing program. Since those leases are ending, the cars need to go somewhere. We think carsharing is a great home for them. BMW, which also runs DriveNow in the German cities of Berlin, Hamburg, Cologne, Munich and Dusseldorf, said in March that it was looking to add the service to as many as 15 more cities in Europe as well as another 10 in the US. BMW debuted DriveNow in San Francisco in August 2012, though parking the cars has always been an issue. Check out BMW's press release below. BMW Group's DriveNow Car-Sharing Service Expands to Street Parking in San Francisco. San Francisco Mayor Ed Lee and BMW Group board member Dr. Ian Robertson provided details about DriveNow at a news conference on ... Eighty All-Electric BMW ActiveE Vehicles Added to the DriveNow Fleet to Increase the Convenience of Finding and Parking Emission-Free Cars. San Francisco, CA – May 8, 2014... BMW Group subsidiary DriveNow, a flexible, premium car-sharing program, will expand to offer street parking in multiple neighborhoods in San Francisco, beginning in select areas of the Mission District and will add 80 electric BMW ActiveE vehicles to the existing fleet, increasing the total number of ActiveE vehicles in the San Francisco Bay Area to 150. DriveNow members will have the opportunity to name the 80 electric vehicles in a two-week social media challenge.