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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.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

BMW i3 takes to the track, circles it in a way you don't expect

So, who wants to see a BMW i3 race around a track. That's what we thought. It's not a long video, but it is entertaining, and the way the urban EV does a 'loop' at second 25 certainly caught out eye. The i3 is scheduled to go on sale in the US later this year and will start at $41,350. The diminutive electric vehicle has a top speed of 93 miles per hour and can hit 62 mph in 7.2 seconds. We found it a hoot to drive, but we're not sure if hardcore BMW performance fans will totally 'get' this car's performance. The i3 is great at what it does, but it wasn't born to hit the race track. After seeing this video, though, we want a crack at it, skinny wheels and all. You can get a behind-the-scenes glimpse here, where Chris Neff writes, "The i3 basically turns in on itself. This is one sharp turning radius, take a look at 24 seconds into the video. We were actually trying to get the i3 to do doughnuts, but the computer would not let the rear brake loose, still, you can see how it held and how sharp we were turning....about 27 times in a row." Watch all 49 seconds below. And wonder with us if whatever aerial device was used to get the shot that ends at four seconds in was destroyed just after the video cuts away.