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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.

BMW could add all-electric Mini, X3 SUV

BMW's Mini sub-brand will add a battery-electric variant as the company looks to meet stricter emissions mandates around the world, according to an interview Bloomberg News conducted with CEO Harald Krueger. BMW is also planning an all-electric version of its X3 SUV and may start greening up models as large as its 7 Series sedan, though that prospect is far cloudier. The all-electric Mini will be available to the public as soon as 2019, while the battery-electric X3 SUV will likely start sales the following year. BMW didn't offer specifics about how much those models would cost or far they will be able to travel on a full electric charge, with Krueger only saying single-charge ranges would be "competitive" with other all-electric models. BMW this summer upgraded the battery in its i3 electric vehicle and boosted its single-charge range by about 40 percent to 114 miles. As for demand for BMW's i sub-brand vehicles, US sales of the i3 through September fell 27 percent to almost 5,800 vehicles, while sales of the i8 plug-in hybrid are down 19 percent to about 1,100 units, BMW said on Monday. Meanwhile, word got out earlier this year that BMW may dedicate the Rocketman concept hatchback as Mini's entrant to the electric-vehicle sector. BMW actually used a Mini as its first electric testing vehicle. The Mini E was produced in 2009 and 2010 before giving way to the BMW ActiveE, which was actually a converted 1-Series vehicle. Eventually, BMW started producing the i3. Related Video: Featured Gallery Mini Rocketman Concept View 25 Photos News Source: Bloomberg News Green BMW MINI SUV Electric

BMW's DTM champ swaps rides with Mini's Dakar winner

BMW may not race in F1 any longer, and it doesn't compete with Audi and Porsche in the LMP1 class at Le Mans. It even shut down Mini's short-lived effort on the World Rally Championship. But that doesn't mean it doesn't race at all. In fact it's the current reigning champion both in DTM and at Dakar. So to highlight its varied motorsport programs, the German automaker had two of its top drivers swap rides. German driver Martin Tomczyk, who won the DTM title in 2011 and now drives for BMW, took to Nasser Al-Attiyah's Mini All4Racing Countryman on the sand dunes of Dubai. Meanwhile the Qatari driver, who has won the Dakar Rally two times now, took to the wheel of Tomczyk's BMW M4 DTM around Oschersleben in Germany. They even repeated the game of musical chairs at Hockenheim over the weekend. If anything, the promo clip shot by Red Bull just goes to show how different the varied racing machinery can be, and the challenges posed to racing drivers switching between disciplines. But lessons aside, it's a cool clip, so check it out above. Two champions swap cockpits: Martin Tomczyk drives the MINI ALL4 Racing, Nasser Al-Attiyah the BMW M4 DTM. Munich (DE), 1st May 2015. From asphalt to sand and back again: BMW DTM driver Martin Tomczyk (DE) and MINI ALL4 Racing ace Nasser Al-Attiyah (QA) both entered unfamiliar territory and took each other's cars for a test drive. As part of a video shoot for BMW Motorsport Premium Partner Red Bull in Dubai (AE), Tomczyk, a proven master of his trade on asphalt as the 2011 DTM Champion, took the wheel of the MINI ALL4 Racing, with which X-raid has won the famous Rally Dakar the last four years. During DTM testing in Oschersleben (DE), Al-Attiyah was given the opportunity to drive Tomczyk's BMW M Performance Parts M4 DTM. Two wins at the Rally Dakar are just some of the successes the rally driver from Qatar has had to date. He followed up his first victory in 2011 by winning in the MINI ALL4 Racing in January 2015. "Driving the MINI ALL4 Racing through the sand and over the dunes in Dubai was a fascinating experience and was so much fun," said Tomczyk. "The car has an incredible amount of torwue – and the test in the dunes was an amazing adrenalin rush even for an experienced race driver such as myself. It's totally different to driving on a circuit.