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Magna Steyr to assemble as many as 70,000 BMW 5 Series models yearly

Soon, not all BMW 5 Series models will be assembled by BMW. Yes, we know that sounds strange, but it's not at all uncommon. For instance, the Mini Paceman and Countryman hatchbacks – and remember, the Mini brand is owned by BMW – are assembled in Graz, Austria, by Magna Steyr, a company that specializes in building cars for other automakers. Soon, though, the contract Mini has with Magna Steyr will be coming to an end, and that means the Austrian company will have excess capacity on its hands. That production capacity will be filled soon enough, however, by BMW 5 Series models, according to a report from Automobil Produktion in Germany. Magna Steyr will build between 50,000 and 70,000 of BMW's mid-level model, according to the report, but there's no indication of which 5 Series model or models (and there are many shapes and sizes to choose...) will be moved to Austria from BMW's plant in Dingolfing in southern Germany. With 373,053 units sold in 2014, the 5 Series is BMW's second-most-popular model, after the 3 Series. BMW told Automotive News Europe that it doesn't comment on those kinds of reports, which, as is usually the case, is neither confirmation nor denial. It's worth noting that the two-door Mini Paceman isn't a part of the brand's plans moving past 2015, though the Countryman soft-roader that currently stands as the largest member of the automaker's family will soldier on. Related Video: Related Gallery 2014 BMW 5 Series sedan View 29 Photos News Source: Automobil Produktion via Automotive News Europe - sub. req.Image Credit: Markus Leodolter / AP Plants/Manufacturing BMW MINI Hatchback Wagon Luxury Performance Sedan austria

2014 Mini John Cooper Works Paceman All4

The One Mini Should Have Taken Rallying
It needs to be said: Mini using the Countryman as their World Rally Championship racer's bodystyle of choice has done them no favors on the marketing front. And that's what it's all about in motorsports these days: marketing and image. We have just driven the 2014 Mini John Cooper Works Paceman All4 through Frankfurt's surrounding rural areas, and even in thick snow where few souls dared to tread, it has singularly rekindled some faith in the John Cooper Works sub-brand - a glorious name whose credibility has been threatened by portly and somewhat pointless products like the JCW Countryman.
The JCW Paceman is a little quicker than its Countryman relative, a little lighter, hunkered down lower, and better looking. We can't say we're crazy anymore about the stock Chili Red details and black exterior they keep showing us at these launches, but that's just paint. Then there's that projected pricing of $36k-plus that puts us on the verge of yelling "¡No mas!" But the All4 system on our 215-horsepower Paceman worked extremely well when paired with a set of exceptional Pirelli Sottozero Winter 210 Serie II tires (sized 205/55 R17 91H all around). The combination of all-wheel drive and good rubber encouraged us to gradually up the average speed and enthusiasm the further we drove along.

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.