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BMW profit of $2.7B is down as automaker invests to keep luxury lead

Despite selling 6.6-percent more vehicles - a record by volume - and posting higher revenues in the second quarter of 2013, BMW Group's profit of 2.07 million euros ($2.75 billion) is down 8.8 percent from last year. Investments in new technology (e.g. the new i3) and personnel, in addition to a competitive market, are to blame, BMW states. But the automaker remains committed to its fiscal targets for 2013, which, Chairman of the Board of Management of BMW AG, Norbert Reithofer, says will be "on a similar scale to 2012."
The BMW brand's sales performance in the first half of the year, which increased by 7.7 percent to 804,258 vehicles delivered, was good enough for it to maintain its lead in the luxury market, narrowly beating Audi, which delivered 780,510 vehicles, Automotive News reports. Mercedes-Benz delivered 694,433 vehicles to cement third place.

Thanks to smaller engines, vehicle dependability falls for first time in 16 years

As automakers have made engines smaller and smaller to improve fuel economy, problems in those vehicles have gotten bigger and bigger. That's the synopsis of a J.D. Power vehicle-dependability study, which found that dependability dropped for the first time in 16 years, largely because the proliferation of four-cylinder engines is causing the vehicles to be less reliable. Specifically, the number of problems per 100 vehicles (or what J.D. Power calls PP100) during the past 12 months for 2011 model-year vehicles rose six percent from the year-earlier figures for 2010 model-year cars. Singling out four-cylinder vehicles revealed about a 10-percent increase in problems during the past year. This issues largely related to engine hesitation, rough transmission shifting and lack of power, signaling the inability of vehicle makers to iron out some of the problems in their smaller engines as they strove for better fuel economy. Six- and five-cylinder engines proved far more reliable. Among car brands, BMW's Mini sub-brand came out as least reliable, with 185 problems per 100 vehicles during the past year. Toyota's Lexus badge was easily the most reliable, with just 68 problems per 100 vehicles. Coming in second place was Mercedes-Benz. The overall average was 133. Check out J.D. Power's press release below. J.D. Power Reports: Increased Engine and Transmission Problems Contribute to Decline in Vehicle Dependability for The First Time in More Than 15 Years General Motors Company Receives Eight Segment Awards, While Toyota Motor Corporation Garners Seven and Honda Motor Company Earns Six WESTLAKE VILLAGE, Calif.: o Owners of 3-year-old vehicles (2011 model year) report more problems than did owners of 3-year-old vehicles last year, according to the J.D. Power 2014 U.S. Vehicle Dependability StudySM (VDS) released today. The study, now in its 25th year, examines problems experienced during the past 12 months by original owners of 2011 model-year vehicles. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. The study finds that overall vehicle dependability averages 133 PP100, a 6 percent increase in problems from 126 PP100 in 2013. This marks the first time since the 1998 study that the average number of problems has increased. "Until this year, we have seen a continual improvement in vehicle dependability," said David Sargent, vice president of global automotive at J.D.

BMW i3s traction control tech going in all BMW, Mini cars

The BMW i3s is essentially a warmed-up version of the i3 electric car we all know and love. The performance boost isn't huge — just 14 horsepower and 15 pound-feet of torque — but it also gets a new suspension, wheels and tires as well as an improved traction control system. We found the car to benefit from all the updates when we drove it for our First Drive Review, but now BMW has offered up more details on just how the traction control system of the i3s helps make it better to drive. The company says it'll expand the technology to all future BMW and Mini models as well. The i3s's system is calibrated to help it to pull away quickly from a stop, making full use of the instantaneous torque offered by the electric motor. It also improves stability when accelerating out of corners, when using regenerative braking and, of course, when the road conditions are less than ideal. The results are palpable, and with the other improvements the i3s definitely feels stronger off the line, as we found on our drive. It's also about a half-second quicker to 60 miles per hour, at 6.8 seconds. The secret is in the response time of the stability control, which BMW claims is 50 times faster than the conventional system. This is made possible by moving the control process into the powertrain itself, rather than a remote unit. This reduces the signal path and, thus, the response time of the traction control system. BMW's Head of Chassis Development, Peter Langen, said of it, "With their high levels of torque and instantaneous responses to every movement of the accelerator, electric motors already make significantly higher demands on driving stability systems than conventional power units." While engineered to make the most of the electric motor, BMW says the shorter cycles of this traction control system show promise for internal combustion vehicles as well. As such, we'll begin to see the improved technology applied across the BMW and Mini lineups going forward. Related Video: