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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.

BMW's Connected Drive feature vulnerable to hackers

BMW is working to fix a cyber-security flaw that has left 2.2 million vehicles worldwide vulnerable to hackers. Cars equipped with the automaker's Connected Drive remote-services system are affected, according to the German Automobile Association (ADAC), which first discovered the problem. Researchers found they could lock and unlock car doors by mimicking mobile communications and sending phony signals to a SIM card installed in affected vehicles. An attack could be launched "within minutes" of accessing the system without the perpetrators leaving a trace, according to their report, in part because once they had gained access to the network, the communications were not secure. In response to the security gap, BMW says it has been upgrading software via over-the-air updates over the past week, so no visits to dealerships are needed to remedy the security hole. In fact, owners of affected cars may not have even noticed the updates taking place. The problem affects BMW, Rolls-Royce and MINI vehicles equipped with Connected Drive since 2010. Flaws were first reported to BMW last year by ADAC, which is the country's equivalent of AAA. ADAC says it withheld a public announcement until the car company could address the problem. While BMW has pushed the software patch to most affected vehicles, the organization said it's possible some at cars in the United States had not yet been updated. BMW did not respond to a request for comment Monday. In a written statement, the automaker said it knows of no real-world breaches. 2015 Off To Dubious Start The hack could raise the eyebrows of industry leaders: Cars are now the equivalent of mobile computers and cyber-security experts have been warning that the auto industry has been slow to close its security holes. BMW's breach marks the second time in 2015 that researchers have found a popular automotive feature with little or no security precautions. Last month, experts said a popular device made by Progressive Insurance that allows motorists to track their driving habits contained no security whatsoever. Like the Connected Drive smart-phone app, many automotive components and infotainment features were conceived and produced at a time when industry executives never considered the possibility someone might want to hack into them. But increased connectivity brings increased risk. Going forward, BMW says its Connected Drive features will now operate by using encrypted communications via the HTTPS protocol.

2016 Mini Cooper S Convertible First Drive

Is there a better place to launch a roofless Mini than Los Angeles in the middle of winter? Temperatures during the drive event for the new 2016 Mini Cooper S Convertible hovered in the mid-80s, and (a begrudging thanks to CARB here) there was only a thin haze to attenuate the sun. Moreover, the sprawled-out and uniquely Californian metropolis doesn't seem to hem in the longer, broader, ever so slightly taller Convertible. Even if you don't necessarily enjoy vehicles that inherently make a statement, driving a Cooper S Convertible around this style-conscious town at least attunes your sensibilities to the Mini norm. Since there isn't much mechanically or stylistically to differentiate the new Convertible from its Hardtop fraternal twin, we can cover the basics quickly. The exterior sheetmetal is, for better or worse, not much different. That means the large proboscis – a nod to pedestrian impact standards and a variety of other engineering and safety concerns – and longer rear overhang carry over. The jutting underbite and slightly walleyed headlight stance exaggerate how bulbous the front end has become with each subsequent generation. Taken in isolation, the Mini Convertible is still undeniably cute, but the English bulldog vibe is slowly being pushed out of the corporate design language as each new Mini is gently inflated. At some point, we'll hit the bursting point. The Mini Convertible is still undeniably cute, but the English bulldog vibe is slowly being pushed out of the corporate design language. Even in the space-compromised Mini Convertible, total cargo area increases by 25 percent to a useful 7.6 cubic feet maximum. The Easy-Load function, which props up the back edge of the soft top on a pair of spindly plastic struts, is a bit fussy but helps get awkward items in and out of the surprisingly deep cargo area. Smaller or soft luggage should go in without issue. Larger items might be better suited for the back seat. If you're buying a four-seat convertible, you should be prepared for these compromises ahead of time. Speaking of time, the top's operation is reasonably quick. It takes 18 seconds to raise or lower the top, at up to 18 mph. It was fast enough for a stoplight change to test out the situation with the lid on. If you've ever been in a last-generation Mini 'Vert, it's about the same – big blind spots mar the view, but it's remarkably quiet.