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BMW planning Zhi Nuo Chinese sub-brand, may export models

Automakers continue to pour big money into the developing market that is China, and new sub-brands born of joint ventures with domestic partners crop up on what seems like a weekly basis. The latest? According to reports, BMW and its Chinese ally Brilliance are forming a new sub-brand called Zhi Nuo ("The Promise") that will likely rely on existing or older BMW products as a basis for new models.
Previous reports had indicated that the sub-brand could build its offerings based on an older 3 Series model (presumably the E90 series), but newer rumors have the X1 crossover (shown) factoring in. The Zhi Nuo brand could receive its official unveiling as soon as later this month at the Shanghai Motor Show.
Perhaps most interestingly, Automotive News Europe reports that the automaker's ambitions for Zhi Nuo may extend beyond China's borders. It's not clear what markets BMW may be eying, but executives admit the company hasn't ruled out Europe.

What does the open patents deal mean for Tesla ... and BMW?

Gift to the world or trade bait? Tesla Motors announced this week it would open its patents for other automakers to use. That has analysts guessing whether the California-based electric-vehicle maker is looking to either swap trade secrets with other automakers or to expand the proverbial pie that represents the plug-in vehicle market. For its part, Tesla says the answer is B. BMW, which is establishing its i sub-brand of plug-in vehicles, would be a natural collaborator with Tesla, Forbes says. In fact, executives from the two companies met in Europe this week. Details were not released, but a BMW spokesman said, "Both companies are strongly committed to the success of electromobility and discussed how to further strengthen the development of electromobility on an international level." While Tesla brings battery technology to the table, BMW offers its carbon-fiber advancements that lighten vehicle-body weight. Those advancements are key to range-extending efforts and could do wonders for Tesla on its journey to help spur technology for the sake of getting more of the general public to accept plug-in technology as a viable first-car option. Then again, Forbes says Tesla, whose investors include Mercedes-Benz parent Daimler and Toyota, may be keeping its best technologies to itself by not patenting certain advancements at all. What's in Tesla's patent pool? uAutoInsurance analyzed Tesla's 249 patents and found that 104 of them related to battery technology, while 28 pertained to recharging activity, which wasn't surprising (about a quarter of those 249 patents couldn't readily be categorized). Tesla also has nine patents related to sunroof technology. The company is based in California, after all.

Audi to spend $17 billion to fight BMW

It's no secret that VW Group, parent company to not only Volkswagen but also Audi, Bugatti, Bentley, Lamborghini, Porsche and Ducati brands sold in the US, is determined to become the world's largest automaker. Even more impressive is that VW is prepared to spend billions to make it happen.
With that comes word that VW Group will be spending $17 billion on its Audi brand over the next three years to push itself above rival BMW. The money will be invested in both vehicle development (including lightweight auto design and alternative powertrains) and facilities (including expansion in Hungary, China and new operations in Mexico). The luxury brand is focused on global manufacturing infrastructure.
Already Europe's best-selling luxury brand, Audi's objective is to overtake BMW by the end of the decade by selling more than two million cars per year (BMW is shooting for 1.54 million sales in 2013). If those objectives are met, VW Group should be on track to be the industry's volume leader by 2018.