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BMW Hack: the auto industry's big cyber-security warning sign [w/video]

A cyber-security hole that left more than two million BMWs vulnerable may be the most serious breach the auto industry has faced in its emerging fight against car hackers. Security experts are not only concerned that researchers found weaknesses inside the company's Connected Drive remote-services system. They're worried about how the hackers gained entry. German researchers spoofed a cell-phone station and sent fake messages to a SIM card within a BMW's telematics system. Once inside, they locked and unlocked car doors. Other researchers have demonstrated it's possible to hack into a car and control its critical functions, but what separates this latest exploit from others is that it was conducted remotely. In an industry that's just coming to grips with the security threats posed by connectivity in cars, the possibility of a remote breach has been an ominous prospect. The fact it has now occurred may mean a landmark threshold has been crossed. "It's as close as I've seen to a genuine, remote attack on telematics," said Mike Parris, head of the secure car division at SBD, a UK-based automotive technology consulting company. "At this point, the OEMs are trying to play a game of catch up." Previous researchers in the automotive cyber-security field have launched remote attacks that are similar in nature, though not the same. In 2010, academics at California-San Diego and the University of Washington demonstrated they could remotely control essential functions of a car, but they needed to be within close proximity of the vehicle. In November 2014, researchers at Argus Cyber Security remotely hacked cars with an aftermarket device called a Zubie plugged into their diagnostic ports. But the remote attack was predicated on the Zubie dongle having physically been installed in the car. With the BMW hack, researchers compromised the car without needing physical access or proximity. The German Automobile Association, whose researchers conducted the BMW study, said it infiltrated the system "within minutes" and left undetected, a feat that raises the possibility that a hacker could do the same in a real-world scenario. Messages Were Sent Unencrypted Security analysts described the BMW infiltration as a "man in the middle" attack. Researchers mimicked a cellular base station and captured traffic between the car and the BMW Connected Drive service, which drivers can access and control via an app on their cell phones.

2014 BMW 328i xDrive Gran Turismo

"The Ultimate Driving Machine" has been BMW's tagline for nearly 40 years. Launched in the 1970s, the marketing campaign was a stroke of genius by ad firm Ammirati & Puris, as the phrase helped differentiate the imported Bavarian cars from their fellow European rivals by subtly pointing out that Mercedes-Benz and Audi were offering luxury models, while BMW was selling sporty and youthful driving dynamics. The campaign worked - some would argue that stands among the most effective ad campaigns ever - and countless Baby Boomers embraced the brand's fun-to-drive image by taking delivery of the company's new models.
BMW still boasts that its vehicles are "The Ultimate Driving Machine" four decades later, but the brand is very different today. It offered just a few model lines in the mid-1970s, and only a handful of vehicles within. In 2014, the automaker offers an exhaustive range comprised of nearly a dozen lines with almost 50 different models. To survive and thrive, BMW has decided it must massively broaden its appeal.
One of the latest arrivals to BMW's ever-growing stable is the 2014 3 Series Gran Turismo. The five-door hatchback is best thought of as a smaller version of the company's 5 Series Gran Turismo built on stretched 3 Series platform that, in the case of this test car, shares the running gear of the 328i xDrive sedan. On paper, the five-passenger vehicle checks all the proper boxes with regards to performance, utility and economy. But does this family-focused 3 Series still deliver driving dynamics that qualify it for the title of Ultimate Driving Machine?

Toyota sells off Tesla shares, too

The incredible rise of Tesla's stock price has done little to now stop two major shareholders from ditching their stake in the American EV manufacturer. First, Daimler, parent company of Mercedes-Benz, ditched its four-percent stake, and less than a week later, Toyota is doing the same thing, selling off an undisclosed bit of its Tesla investment.
The move comes as Toyota winds down sales of the RAV4 EV, which gets its batteries and electric motor from Tesla at the company's Fremont, CA factory.
"We have a good relationship with Tesla, and will evaluate the feasibility of working together on future projects," Toyota spokesperson Kayo Doi told Bloomberg via email.