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China’s Great Wall looking to partner with BMW to sell cars in the West

The Chinese automaker Great Wall seems to have moved on from courting Fiat Chrysler. According to Reuters, the company announced in a stock exchange filing that it's looking to collaborate with BMW's Mini brand in some way. Reuters also reports that BMW is open to discussion. We reached out to a BMW representative, and he provided us with an official statement regarding the news. The company didn't specifically say it is talking with Great Wall. What it did say is that it has had success with its current partnership with another Chinese automaker Brilliance, but also that the company is interested in expanding the Mini brand worldwide and in China. The statement says that Mini's future strategy and expansion will include "diversification of partnerships and new cooperation models." It also said that expanding in China "is only possible with a local partner." That sounds to us like BMW is pretty interested in working with Great Wall. This move comes about a month and a half after Great Wall attempted to purchase parts of Fiat Chrysler. The company was reported to be talking to FCA to purchase the Jeep brand, and it later confirmed that it was interested in that brand, a few, or the whole company. But things seemed to fall apart when Fiat Chrysler's CEO Sergio Marchionne announced it hadn't received any offers and wasn't working on any kind of deal with another company. Now it may seem a little odd that Great Wall would shift from trying to buy an SUV brand, or a company that is beginning to concentrate on crossovers and trucks, to one that specializes in compact cars. After all, they're fairly different segments. Our theory is that Great Wall isn't necessarily interested in the specific products, but more that it's looking for a gateway to Western car markets. It's not something new for the company. As far back as 2013, the company made it clear it was looking to start selling cars in America. It also started looking into a manufacturing facility in Mexico earlier this year, which would supposedly supply vehicles to both Mexico and the U.S. Now when Great Wall announced its American sales intentions, it was targeting a date of 2015. That obviously didn't happen, and it probably has something to do with the company's products. Most of the cars under the Great Wall and Haval brands bear an uncanny appearance to discontinued models from other companies that compete in the West.

Mini Cooper SE Prototype First Drive Review | This electric hatch is a suburban belter

MUNICH, Germany — A battery-electric Mini SE? Haven't we been here before? Well, yes: A decade ago, as part of its "i Project," BMW conducted a worldwide field trial of some 750 lithium-ion battery equipped two-door Mini Coopers. It was launched at the 2008 L.A. Show, and the lithium-ion battery pack took up most of the space normally occupied by the rear seats. Nevertheless, interest in the 450 lease vehicles offered in the U.S. (at $850 a month) was strong, with more demand than cars available. One result of the 2008-2011 trial was parent company BMW learned that the average owner of a two-door Mini drives about 25 miles a day, and the company is hoping the battery Mini will be an ideal (sub)urban-run-around for two- or three-car families. Now BMW is about to launch a production Mini EV (based on the two-door model, but with the full complement of four seats), which goes on sale at the end of the year. This will join the Mini Countryman All4 plug-in hybrid in the electrified Mini stable, but while the Countryman has an EV range of about 12 miles, this battery Mini will travel around 120 miles on a single charge. The reason we can't be too definite about the new Mini's capabilities is that BMW isn't allowed to "advertise" the car this far in front of its on-sale date. We caught up with the prototype model, mummified in camouflage tape, at an off-the-road driving event held at BMW's Munich driving center on the former military air base of Furstenfeldbruck, now known as Maisach. The drivetrain is based on the middle model of BMW's i3 range, the i3S, with its 135 kilowatt/181 horsepower motor and 94 amp-hour, 33 kilowatt hour battery. The battery is a 96-cell lithium-ion unit from Chinese supplier CATL instead of BMW's previous supplier, Samsung, and it weights 441 pounds. Unlike the team-built, mainly carbon-fiber i3, the Mini is a standard three-door model that runs down the production line in Oxford, with a metal subframe that houses the electric motor, inverter, transformers, and control electronics so they can be slotted into place like a conventional driveline. We can extrapolate a few things about the Mini from the BMW i3S. As well as its working range of 120 miles, the i3S has a top speed of 100 mph and will accelerate from 0-62 mph in 7.7 seconds. With over 360 pounds more to pull about, the 2,998-pound Mini EV will be slower, with less range, especially if used in cold conditions.

BMW looking to save billions with cost cuts

BMW is planning a fairly extensive overhaul in a bid to recoup some its annual costs, with CEO Norbert Reithofer (pictured above) aiming to save three to four billion euro ($4 to $5.4 billion) per year to help keep the company's profit margins between eight and 10 percent, while also maintaining investments in production expansion and new tech. BMW's profit margins sat at 9.4 percent in 2013.
According to Automotive News Europe, Reithofer is none too pleased about costs at Mini and on the 1 Series, although neither AN nor its source story, from Germany's Manager Magazin, elaborate on what steps could be taken to improve losses on either project. That makes it hard to figure out just where the fat will be trimmed from.
What may happen, though, is that BMW attempts to trim 100 million euros ($135 million) from its German labor costs each year; a solution hinted at a few weeks ago by Germany newspaper Muenchner Merkur. While a dramatic cost reduction, 100 million euros still doesn't begin to even approach the savings envisioned by Reithofer.