09 Mini Cooper Clubman Leather Auto Certified Warranty We Finance Texas 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 moving away from leather as it shifts to recycled interiors

In the midst of a far-reaching transformation, Mini announced that it will gradually phase leather upholstery out of its range in the coming years. It plans to fully adopt recycled fabrics in a bid to make its cars more eco-friendly. "We don't need leather any more in the future, because we don't believe it's sustainable. We're totally convinced that we will have modern and high-value products without leather," affirmed Oliver Heilmer, the firm's design boss, in an interview with British magazine Autocar. He didn't reveal when leather will disappear completely, however. Demand for real hides nonetheless remains relatively high; Autocar pointed out that about 54% of the new cars that Mini sells in the United Kingdom are ordered with leather upholstery, which is generally either sold at an extra cost or made standard on upmarket trim levels that come with a price premium. We've asked the company's American division to provide us with the take rate on our shores, and we'll update this story if we learn more. Mini's shift towards recycled materials is ongoing. As of writing, 100% of the fabric it uses to upholster seats is recycled, according to the same report, and 70% of the material underneath the cloth is, too. Looking ahead, it will make interior trim pieces with recycled materials. Cork was used in the Urbanaut concept, for example. Heilmer's comments add another piece to the next-generation Hardtop puzzle. Tentatively due out in 2023, so possibly as a 2024 model, it will embody the nameplate's biggest evolution since BMW rebooted it in 2000. It will likely still be offered with two or four doors, though the convertible is allegedly living on borrowed time, and both will be smaller than their respective predecessors. It will also showcase a purer approach to design. Heritage will continue to shape the exterior design. Inside, the theme will come "more from a home perspective rather than an automotive one," Heilmer noted, which partially explains why stylists want to incorporate different materials. His team is still debating whether features like the toggle switches need to come back, or if they're outdated. Most can be replaced with a menu in the infotainment system, but tapping a screen is not as satisfying and a lot more anodyne than flipping a switch. Designing a new Mini requires balancing the past and the future. "We're looking to create a timeless design.

NHTSA, IIHS, and 20 automakers to make auto braking standard by 2022

The National Highway Traffic Safety Administration, the Insurance Institute for Highway Safety and virtually every automaker in the US domestic market have announced a pact to make automatic emergency braking standard by 2022. Here's the full rundown of companies involved: BMW, Fiat Chrysler Automobiles, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, Kia, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Subaru, Tesla, Toyota, Volkswagen, and Volvo (not to mention the brands that fall under each automaker's respective umbrella). Like we reported yesterday, AEB will be as ubiquitous in the future as traction and stability control are today. But the thing to note here is that this is not a governmental mandate. It's truly an agreement between automakers and the government, a fact that NHTSA claims will lead to widespread adoption three years sooner than a formal rule. That fact in itself should prevent up to 28,000 crashes and 12,000 injuries. The agreement will come into effect in two waves. For the majority of vehicles on the road – those with gross vehicle weights below 8,500 pounds – AEB will need to be standard equipment by September 1, 2022. Vehicles between 8,501 and 10,000 pounds will have an extra three years to offer AEB. "It's an exciting time for vehicle safety. By proactively making emergency braking systems standard equipment on their vehicles, these 20 automakers will help prevent thousands of crashes and save lives," said Secretary of Transportation Anthony Foxx said in an official statement. "It's a win for safety and a win for consumers." Read on for the official press release from NHTSA. Related Video: U.S. DOT and IIHS announce historic commitment of 20 automakers to make automatic emergency braking standard on new vehicles McLEAN, Va. – The U.S. Department of Transportation's National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety announced today a historic commitment by 20 automakers representing more than 99 percent of the U.S. auto market to make automatic emergency braking a standard feature on virtually all new cars no later than NHTSA's 2022 reporting year, which begins Sept 1, 2022. Automakers making the commitment are Audi, BMW, FCA US LLC, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, Kia, Maserati, Mazda, Mercedes-Benz, Mitsubishi Motors, Nissan, Porsche, Subaru, Tesla Motors Inc., Toyota, Volkswagen and Volvo Car USA.