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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.

Psychology can wipe out 20-25% of your EV's range

There are two primary takeaways from a recent study of electric-vehicle driving habits in Germany. One: an electric vehicle with 25 percent of its battery charge left creates the same reaction in drivers as the fuel needle on "E" in a gas-powered car. Two: familiarity breeds comfort. The study, conducted by Germany's Technische Universitat Chemnitz and funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, put some real numbers on the concept of "range anxiety." According to Green Car Congress, that anxiety truly kicks in when there's less than a quarter of the driving range left on an EV's battery and the study found that a typical car's range is "shortened" by a 20 to 25 percent "psychological safety buffer." If we take the popular Nissan Leaf as an example, the official 84-mile single-charge range is really closer to 63 miles in the head of the driver. The longer the driver spent in the EV, the shorter his mental buffer became. The study was culled from data involving just 79 drivers who tooled around Berlin in Mini E EVs for about six months, collectively putting a quarter-million miles on the electric vehicles. The good news is that the longer the driver spent using the EV, the shorter his mental buffer became, which meant he could comfortably get more miles from the car. So, to all you EV advocates out there, know that once drivers spend some time with an EV, they get more and more used to what the car can do. It's a lesson we've learned before. Just remember that to new EV drivers, the single-charge range is a lot smaller than the one old-timers see.

EPA: Four 2014 Mini Cooper models need to drop mpg numbers

After the huge problems that Hyundai/Kia experienced with its mislabeled fuel economy labels, you'd think that any time an automaker has to adjust its mpg numbers, heralds would be shouting from the rooftops. But, after Ford admitted to three big mistakes with its numbers for the 2013 C-Max Hybrid and Mercedes-Benz had to lower the fuel economy rating for the C-Class, we understand if those heralds are a bit tired by now. The models affected include the 3-door and the 3-door S. Still, today's news is that BMW has to lower the fuel efficiency numbers for four versions of the 2014 Mini Cooper thanks to an audit conducted by the EPA and then some joint re-testing. The models affected include the 3-door with the 1.5-liter engine and the 3-door S with its 2.0-liter powerplant, with both manual and semi-automatic transmissions. As with the Benzes, the rating changes are not big ones, around one or two miles per gallon. The big exception is the manual S 3-door's highway number, which lost four mpg from 38 to 34. You can see all the numbers, new and old, in the press release below, but the EPA isn't saying what caused the problem this time. The Agency's new test procedures can't come fast enough. It should be noted that the 2015 Mini Cooper was recently delayed a bit because of the extra time it took to get the EPA numbers right. There's no confirmation that these two items are connected, but we would not be surprised to hear they were. EPA Requiring BMW to Correct Fuel Economy Labels for Four Mini Cooper Vehicles Washington - The U.S. Environmental Protection Agency (EPA) is revising estimates for four 2014 BMW Mini Cooper vehicles to ensure consumers are given accurate fuel economy values. The EPA performed a fuel economy audit on the BMW Mini Cooper and obtained values that differed from those BMW submitted to EPA for certification. With EPA oversight, BMW conducted new emissions and fuel economy testing, and EPA conducted its own testing at its National Vehicle and Fuel Emissions Laboratory in Ann Arbor, Michigan. As a result of this subsequent testing, EPA is requiring BMW to relabel four of its 2014 Mini Cooper models with lower fuel economy values. The specific changes to fuel economy stickers are listed in the table below.