on 2040-cars

Auto blog

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.

Mini Clubman Final Edition could be the end of the Clubman line

The Mini range is in for an enormous overhaul next model year, the little Anglo-German hatchbacks getting more mature, more roomy, more powertrains, more digital. The Clubman trim could be saying goodbye for good, the wagon's restrained dimensions perhaps not a fit for where Mini's going. For 1,969 buyers around the world, the Mini Clubman Final Edition will be a way to say "Farewell." As with the Mini Convertible Seaside Edition, the Clubman Final Edition commemorates the birth of the original Clubman produced from 1969 to 1981. It's available in three colors: Enigmatic Black, Melting Silver, and Nanuq White. Those base hues will be accented by Shimmer Copper trim on the grille and fender vents, as well as three stripes running up the passenger's side of the hood. Another three Shimmer Copper stripes run along the lower sides underlining the "1 of 1969" badge on the C-pillar. The wagon sits on 18-inch wheels with a two-tone Final Edition Spoke lacquered to recall copper.  The side sills carry "Final Edition" lettering at the threshold to the front seats, and a "1969" badge across the rear threshold. Inside, there are a lot more warm brown and badging to behold. Three-tone Mini Yours leather sports seats are far flashier than anything from 1969, set off by anthracite Piquet fabric, blue contrast stitching, stitched badging and a copper-colored button. A range of "Final Edition" and "1 of 1969" notifiers run appear on the steering wheel, instrument panel, and floor mats.  Depending on market, the Clubman Final Edition can be ordered in Cooper and Cooper S trims, with any available powertrain including diesel, and in two- or four-wheel drive. We're not sure how many will come to the U.S., if any, nor what they will cost, so check with your dealer. The 100 specials being sent to the UK will start at GBP37,000 ($45,250 U.S.) on-the-road, about GBP10,000 ($12,230 U.S.) above an entry-level Clubman Cooper Classic. Related Video This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. New MINI Clubman Cooper S review

Lots of Land Rovers, Jaguars and Minis actually survived that near-capsized ship

Despite a severe list to starboard, many of the 1,400 cars and SUVs aboard the 51,000-ton Hoegh Osaka are currently being recovered in salvageable condition, with video showing some of the vehicles from British brands Land Rover, Jaguar and Mini, being driven ashore under their own power. The car-carrying vessel developed a severe list on January 3 and was intentionally run aground on a sandbar between England and the Isle of Wight. It has since limped its way back to port in Southampton, where damage assessments are being conducted on both the ship and its $53-million in cargo. According to the company that owns the car carrier, the ship itself only suffered minor damage in the incident, while Car and Driver is reporting that many of the damaged vehicles will almost certainly be scrapped. Still, the fact that there are vehicles, some of which appear undamaged (look at that Defender at 0:50!), being removed from the Hoegh Osaka needs to count as a net win. News Source: Car and Driver, WonkaBar007 via YouTube Jaguar Land Rover MINI Coupe Crossover Hatchback Luxury Off-Road Vehicles Performance Videos Sedan