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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.

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:

Mini recalling 92k vehicles over airbag flaw

An issue with the airbags on Mini hatchbacks and convertibles has prompted BMW of North America and the National Highway Traffic Safety Administration to issue a recall for an estimated 91,800 vehicles. The problem, according to the notice below, stems from the occupant detection mat for the front passenger seat, which may fail to detect a passenger present and therefor fail to deploy the airbag in the event of a crash. The specific models affected by the recall are the Mini Cooper and Cooper S hardtops from the 2005 and 2006 model years and manufactured between January 5, 2005, and November 28, 2006, as well as the Mini Cooper Convertible and Cooper S Convertible from the 2005 to 2008 model years, manufactured between January 5, 2005, and July 31, 2008. To address the issue, Mini dealers will be replacing the front passenger seat occupant detection mat, with recalls set to commence on May 1. Related Video: RECALL Subject : Front Passenger Seat Occupant Detection Mat Report Receipt Date: APR 06, 2015 NHTSA Campaign Number: 15V205000 Component(s): AIR BAGS Potential Number of Units Affected: 91,800 Manufacturer: BMW of North America, LLC SUMMARY: BMW of North America, LLC (BMW) is recalling certain model year 2005-2006 MINI Cooper and Cooper S vehicles manufactured January 5, 2005, to November 28, 2006, and 2005-2008 MINI Cooper Convertible and Cooper S Convertible vehicles manufactured January 5, 2005, to July 31, 2008. Due to manufacturing, installation, and exposure issues, the front passenger seat occupant detection mat may not function properly and, as a result, the front passenger air bag may not deploy in a crash. CONSEQUENCE: An improperly functioning mat may cause the passenger frontal air bag to be inactive when the seat is occupied, and in the event of a crash, the air bag will not deploy, increasing the passenger's risk of injury. REMEDY: MINI will notify owners, and dealers will replace the front passenger seat occupant detection mat, free of charge. The recall is expected to begin May 1, 2015. Owners may contact MINI customer service at 1-866-825-1525. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.