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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.

2016 BMW 435i ZHP Edition Coupe Quick Spin [w/video]

BMW will make a total of 100 ZHP 435i coupes for 2016. This is not one of them. Nope, it's their predecessor, what the company calls a "replica," based on a 2015 car. Think of it as Car Zero. Bimmer nerds (the ones who correct you if you call their car a "Beemer") will remember the ZHP package from the E46 3 Series. An internal option code that became insider lingo and a must-have for enthusiasts. They're still sought after today. Built from 2003 to 2006, the original ZHPs included a power boost (to 235 hp), a modified suspension, an M-Tech II body kit, and a unique shifter and shift knob. The new ZHP has a considerably longer list of equipment. It builds on a 435i coupe with the M Sport package and either a manual or automatic transmission. Additions begin with the new-for-2016 Track Handling package – 18" wheels, M Sport brakes, the Adaptive M Suspension, and Variable Sport Steering. To that BMW adds an M Performance limited-slip differential, M Performance exhaust, the M Performance Aerodynamics package, and the M Performance Engine Kit; horsepower goes from 300 to 335, torque jumps to 332 lb-ft for automatic cars or 317 on manuals. Yeah, it's a lot of stuff, but nothing you can't order on a car for yourself. So the process that let BMW make this replica so easily also contributes to a lack of specialness. All of the equipment is available either from the factory or through BMW's VIA personalization program. VIA components are spec'd at the time of ordering and then installed at port when the car lands in the US. BMW hasn't announced pricing yet, but we have a hunch a full-on ZHP will come in slightly lower than a car optioned a la carte (though we don't know, since BMW didn't tell us how much our car cost). The 4 Series we reviewed had all the ZHP equipment save the wheels and tires. All 2016 ZHPs will get v-spoke wheels finished in Orbit Grey and wrapped in Michelin Pilot Super Sport tires; the car we drove had a different 18-inch wheel design and Bridgestone Potenza S001 rubber. Driving Notes The 435i already has too much power. The M engine kit provides more of it. You may not be surprised to learn that we also enjoy chocolate-covered chocolate. Perhaps the saving grace of the questionable output bump, and the most transformative part of this package, is the mechanical limited-slip. Even without the grippier tires it's supposed to come with, the near-ZHP put it all to the ground smoothly and predictably.

Volkswagen Group, BMW Z4 top Total Value Awards by Strategic Vision

It was just nine months ago that Strategic Vision announced its 2011 Total Value Awards, but you don't have to wait until next year for the 2012 awards. The Volkswagen Group keeps its lead as the number one brand, with seven products taking top category spots: Golf, Jetta Wagon, CC, Eos and Audi A3 Wagon, Q5 and Q7. Strategic Vision says "true innovation" - "rich and impactful, intuitive, motivational, in-depth and is able to trigger description by the user in great specificity" - is the open secret of the brands with the strongest showings. Results are culled from 77,153 owners covering more than 350 new cars bought between September of 2011 and 2012 ranked in the Total Value Index (TVI).
Other notable winners are Hyundai-Kia following VW in the brand category and having the Hyundai Elantra and Kia Sorento among category winners, the BMW Z4 taking the premium roadster category and the highest overall score of any vehicle, the Chevrolet Volt continuing to gather silverware in the Special Category, nabbing the second-highest score of all and representative of "nearly perfect innovation," and Chrysler and Dodge being most improved.
Check out the press release below for your day's dose of jargon and all the winners.