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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.

'Why isn't he stopping?' Mini driver describes being pushed sideways by dump truck

Yesterday, a video out of Toronto made the rounds on social media. It was scary to watch, as a dump truck pushed a Mini sideways a half-kilometer (third of a mile). But there were no details about why this accident happened or who was involved. Today, we know more:   This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Courtenay Erhardt, 26, is a nurse who was driving her Mini to a coronavirus vaccination site to administer shots to homeless people. She says she was waiting at a stoplight before heading up an onramp. “I was in front of him at that stoplight. We were both trying to get onto the Gardiner (Expressway)," she told the Toronto Star, which has a photo of Erhardt and a close-up look at the Mini stuck to the Kenworth's bumper. "He hit me from behind when we were merging." "[The dump truck] just sort of bumped my back rear-end and unfortunately I went sideways and the truck just continued to go up the ramp," Erhardt told CTV News Toronto. "I just remember holding my horn and my steering wheel and just screaming. Just like bawling and screaming. I honestly didn't know if my Mini was going to flip, or veer out into oncoming traffic on the Gardiner," she said. "I just remember thinking, 'Why isn't he stopping? Why is he still going?'" A couple in another car behind the truck saw smoke coming off the truck and knew something was wrong, Erhardt said. They pulled up alongside her, saw what was going on, then pulled ahead of the truck and forced it to stop. They called 911 and helped Erhardt escape her car. The truck driver, Erhardt said, emerged. “He said, ‘I didnÂ’t see youÂ’ and asked me not to call the cops. He asked if he could pay for the damages. He was young.” He has been charged with several offenses, Toronto police said.  Police Sgt. Murray Campbell released a statement to CTV saying, "Operators of large vehicles do not have the benefit of such lower/smaller vehicles, in their ability to see out of windows in all directions," implying the truck driver couldn't see the small car beneath his hood. Campbell advised motorists to make sure they can see truck drivers so the truck drivers can see them.  Which is good advice. That said, this truck driver surely felt that something was wrong — and heard the sounds that we can hear in the video. Erhardt, though terrified, was not injured. She credits the couple who helped her, along with the Mini Cooper.

Lexus tops JD Power Vehicle Dependability Study again, Buick bests Toyota

It shouldn't surprise anyone, but Lexus has once again taken the top spot in JD Power's Vehicle Dependability Study. That'd be the Japanese luxury brand's fourth straight year at the top of table. The big news, though, is the rise of Buick. General Motor's near-premium brand beat out Toyota to take second place, with 110 problems per 100 vehicles compared to Toyota's 111 problems. Lexus owners only reported 89 problems per 100 vehicles. Besides Buick's three-position jump, Scion enjoyed a major improvement, jumping 13 positions from 2014. Ram and Mitsubishi made big gains, as well, moving up 11 and 10 positions, respectively. In terms of individual segments, GM and Toyota both excelled, taking home seven segment awards each. The study wasn't good news for all involved, though. A number of popular automakers finished below the industry average of 147 problems per 100 vehicles, including Subaru, (157PP100), Volkswagen (165PP100), Ford/Hyundai (188PP100 each) and Mini (193PP100). The biggest losers (by a tremendous margin, we might add) were Land Rover and Fiat, recording 258 and 273 problems per 100 vehicles. The next closest brand was Jeep, with 197PP100. While the Vehicle Dependability Study uses the same measurement system as the Initial Quality Survey, the two metrics analyze very different things. The VDS looks at problems experienced by original owners of model year 2012 vehicles over the past 12 months, while the oft-quoted IQS focuses on problems in the first 90 days of new-vehicle ownership. Like the IQS, though, the VDS has a rather broad definition of what a problem is. Because of that, a low score from JD Power is no guarantee of extreme unreliability, so much as just poor design. In this most recent study, the two most reported problems focused on Bluetooth connectivity and the voice-command systems. The former leaves plenty of room for user error due to poor design (particularly true of the Bluetooth systems on the low-scoring Fords, Volkswagens and Subarus), while the second is something JD Power has already confirmed as being universally terrible. That makes means that while these studies are important, they shouldn't be taken as gospel when it comes to automotive reliability. News Source: JD PowerImage Credit: Copyright 2015 Jeremy Korzeniewski / AOL Buick Fiat Ford GM Hyundai Jeep Land Rover Lexus MINI Mitsubishi RAM Scion Subaru Toyota Volkswagen Auto Repair Ownership study